A Quick Look at Some of the Reasons That You May be Audited

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A tax audit enacted by the CRA is quite a common occurrence and sooner or later, the majority of individuals will experience this confusing and even unsavory process. Although there are times that the Canada Revenue Agency will choose who it will audit at random; there are a number of conditions that may precede action being taken. For your information and protection, it is a good idea to take a … [Read more...]

What Canadian Citizens Can Do with Their U.S. Retirement Plan (401 (k) or IRA)?

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aking employment in the U.S. is common for several Canadian professionals, including accountants, executives, engineers and athletes. Since employment in the U.S. has several benefits like lower taxes and unique opportunities, a lot of Canadian professionals work in the country from time to time. Over the years, some of these individuals stay in the U.S. permanently while others decide to come … [Read more...]

Understanding the Tax Ramifications of Investing in Registered U.S. Accounts

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The tax laws in the U.S. and Canada are entirely different. As a result, when people move from one country to another, they face a lot of trouble adjusting with these tax complications. For investors, understanding these tax ramifications, however, is extremely important while investing in U.S. accounts. To help you understand this better, here is an account of tax ramifications that investors … [Read more...]

The Tax Implications of Investing in Non-Registered Investment Accounts in the U.S.

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If you are a Canadian citizen who is planning to live in the U.S., there are several types of investments you can make other than those made towards your retirement savings. These investments are usually made towards non-registered investment accounts and the tax implication for all of them is different in both the countries. Here is an explanation of how taxes will be applicable when you invest … [Read more...]

HST Fraud

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In late October of 2013, an Annapolis Valley businessman was charged with a total of $14,862 dollars in fines stemming from tax evasion and falsifying tax records. After pleading guilty to thee accusations in July, he was ordered to pay the amount by November of 2014. The charges stemmed from evidence that Laurie Bruce Cameron has engaged in false statements and fraudulent input tax credits on … [Read more...]

Disposing Real Estate in Canada for Owners Who Are Non-Residents: What You Need to Know

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As should be expected, there are a handful of tax implications for those who wish to sell a property in Canada and who are not legal residents of the country. These properties can include residential homes, land and vacation properties. Should a non-resident decide to sell any such properties, he or she will be liable for paying taxes on any capital gains or income that have resulted from such a … [Read more...]

Year-End Planning

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The Canadian government has recently announced that the contribution limits for this year’s TFSA (tax-free savings account) will remain unchanged at $5,500 dollars. The reason that this amount has not increased is that low inflationary rates during 2013 have not enabled the limit to exceed the $500 dollar mark that would have enabled it to increase to $6,000 dollars. As per the normal … [Read more...]

Non-Resident Tax Advisory

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Withholding Tax for Non-Residents If you have sources of income in Canada that continue after you have departed from the country, you will have to pay a withholding tax at 25%. No additional income tax would be paid and this would be the only liability you would have towards Canada. Under the Canada-US tax treaty, you can also get tax reductions on some specific kinds of income. So, if you are … [Read more...]

US Tax Filing Requirement

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All US citizens, tax residents and green card holders are required to file tax returns and pay their taxes to the United States of America. If you belong to any of these categories, regardless of your place of residence and where you receive your income, then you are covered by this US IRS directive. You are a tax resident if you measure up to the test on substantial presence for every calendar … [Read more...]