If a Canadian sells foreign real property with an accrued gain, he or she should be able to claim a foreign tax credit in Canada for the foreign taxes paid. The same is not true if the Canadian dies owning…
International tax update
The following are my notes on an international tax update from Steven Suarez given at an OBA taxation law presentation on September 22, 2020 (“Advising your clients amidst financial uncertainty: Summer 2020 tax developments”) For the paper, see ~\Knowledge\Seminar materials\2020…
Foreign tax credits and US estate taxes
US federal and state estate taxes are eligible for a tax credit in Canada only because of the Canada-United State Income Tax Convention (1980). The treaty, however, does not bind Canada’s provinces. Ontario and BC, unlike other provinces, have not…
US grantor trust
Neal Armstrong notes that the CRA continues to maintain that a US grantor trust is not a bare trust for Canadian tax purposes. See his summary of the CRA response to question 10 at the 2016 STEP conference.
Panama
From a CRA press release issued two days ago on the Panama papers: The Canada Revenue Agency (CRA) is committed to combating the abusive use of offshore jurisdictions and protecting the integrity of the Canadian tax system. The CRA continues…
T1135 assessments
Marlene Cepparo, “Form T1135 and Part I Tax Return Reassessment” (January 2016) 24:1 Canadian Tax Highlights discusses technical interpretation 2015-0572771I7 (September 15, 2015). A late-filing penalty for a T1135 must be assessed within the normal reassessment period for the year…
A simpler T1135
My thanks to Fred Buzzelli, who sent me a link to a good article by Gabe Hayos on the simplified T1135.
Payments to non-residents
The CRA concluded that Canco was not required to withhold from incentive amounts paid to the non-resident employees of dealers of Canco’s profits. The incentive amounts amounts related to warranties registered on Canco’s products. The CRA, however, stated that Canco…
Deposit forfeited to non-resident vendor
From Georgina Tollstam, “Deposit Forfeited to Non-Resident” Canadian Tax Highlights 23:6 (June 2015): An internal technical interpretation (2013-0479861I7, March 16, 2015) confirms that if a Canadian taxpayer purchases real property located in Canada from a non-resident vendor and the sales…
Immigration Tax Issues
Jack Bernstein and Ron Choudhury, in “Immigration into Canada”, Canadian Tax Highlights 23:2 (February 2015), highlight some of the tax issues to be considered in advising a person who is immigrating to Canada.