Canadian Tax

Ready for some good news? By all accounts, recent data analysis indicates that this latest COVID-19 wave, which was largely driven by the Omicron variant, has peaked in Canada and case numbers have sharply declined. Ottawa has noticed and responded by announcing the lifting of a few travel restrictions that have been in place to…

Benjamin Franklin once said, “in this world, nothing can be said to be certain except death and taxes.” This statement is more relevant than ever for the millions of Americans living outside the US. The certainty is this: if you are a US citizen, regardless of where you live, your debt to the Internal Revenue…

Several of my clients and colleagues have brought to my attention an article titled “Americans seeking to renounce their citizenship are stuck with it” written by Ed Pilkington in The Guardian. I would like to address several points in the article that may give readers a misleading representation of the current state of renouncing one’s…

There have been ongoing rumors about the Canadian government potentially increasing the capital gains inclusion rate from its current level of 50% to a higher level or changing the exemption for capital gains on principal residences. While some prognosticators have been crying wolf on this prediction for many years, there very well may be a fire brewing…

Since November 8, 2021, foreign travelers entering the US via air and those not classified as “essential workers” entering via land ports-of-entry have been required to be fully vaccinated for COVID-19. However, as of January 22, 2022, essential workers previously exempt from COVID vaccination requirements for land entry to the US must be fully vaccinated…

If you’re a lawyer, accountant or financial advisor practicing outside the US, there is one simple question you must always address with every single one of your clients: are they an American citizen or Green Card holder? But simply asking this straightforward and basic question is not always enough. Many clients are US citizens or…

It’s The Most Tax-iest Time of the Year[1] With the Taxman[2] he’s yelling, and we’re all foretelling lots of tax increases! It’s the most tax-iest time of the year It’s the tax, tax-iest season of all With those tax forms[3] completing And tax heavy meetings where clients come call[4] It’s the tax, tax-iest season of…

Travelers beware – late yesterday, the US Center for Disease Control and Prevention (CDC) released a new ordermandating even more stringent testing requirements for international travel to the US. The order comes just days after a new Presidential Proclamation banning travel from certain countries to the US.   Beginning Monday, December 6, 2021, all individuals…

A few weeks ago, we collectively breathed sighs of relief as many COVID-related travel bans and restrictions, expensive testing requirements, and mandatory quarantines began to be slowly rolled back in the US and Canada. Shouldn’t we have learned, by now, not to count those chickens until they’ve hatched?   With the first news release on…

After just celebrating the end of COVID-related US travel bans in early November, the various unknown factors pertaining to the new COVID variant, B.1.1.529 (Omicron), has resulted in a new Presidential Proclamation banning travel from certain countries to the US.   When do the new travel restrictions become effective? The new proclamation, released by President…

After the last two-years of lockdowns, travel bans and restrictions, and rigid COVID-19 testing requirements for travel, we will take any good news on this front. And, thankfully, we have a bit of that good news. Beginning November 30, 2021, which is coincidentally my birthday, fully-vaccinated Canadian citizens, Canadian permanent residents, individuals registered under the…

In our last two blogs on subsection 55(2), we provided our reasons for disagreeing with to the CRA’s position regarding the application of subsection 55(2) to a transaction completed solely for purpose of creditor-proofing and a case study of what we believe is an acceptable creditor-proofing transaction. In this blog, we will discuss another recent…

Drastic tax changes are likely coming from the Biden administration in the not-so-distant future, and there are plenty of reasons for US expats to be nervous. While still being hashed out in the halls of Congress as we speak, proposed changes could see $US2.1 trillion worth of tax increases aimed at individual and corporate taxpayers…

In this Blog, we build upon our Response to the CRA’s Position on Creditor-Proofing Reorganizations blog by presenting a specific example of a creditor-proofing reorganization.  Assume that Mr. A owns all of the outstanding shares of a holding corporation (“H-1”) which, in turn, owns all of the outstanding shares of an operating corporation (“Opco”) which, in…

One of the most popular questions I get during my renunciation webinars and over the 4,000 files I’ve handled is, “Will I lose my Social Security after I renounce my US citizenship?” The short answer is ‘No.’ You won’t lose your Social Security with a properly-handled renunciation because most countries have totalization agreements with the…

While foreign travelers have been eligible to fly to the US from Canada throughout the pandemic without any sort of “essential travel” requirement, the land ports-of-entry have been closed to all but essential workers and those whose travel is essential, which is all within the discretion of US Customs and Border Protection (CBP).   The…

The election results are in, and for Canadians hoping to build or protect their wealth, the uncertainty which accompanies large budget deficits, ever increasing levels of government debt, and a minority government, are something to reflect on. The inflation adjusted combined provincial and federal net debt in this country is expected to reach $2 trillion…

Tired of wading through political rhetoric that never gets to the point? Moodys Private Client has summarized the tax announcements contained in the election platforms of the Liberals, Conservatives and NDP so that you can see how each of these political parties proposes to hit your pocketbooks for the next four years. To view our…

What’s the skinny? Full vaccination against COVID-19 is now your key to and within Canada. Canada Extends Vaccinated Traveller Exemption Worldwide As of this morning (September 7, 2021), Canada’s borders are open to all travellers with appropriate travel documents (country-specific) who qualify for the fully-vaccinated traveller exemption.  To qualify for the fully-vaccinated traveller exemption, one…

On August 31, 2021, the US Department of Homeland Security (DHS) announced an extension of the agency’s March 23, 2020 guidance temporarily providing some flexibility in the manner in which US employers and employees complete the I-9 process during the COVID-19 pandemic. As we discussed in detail in our previous blog, all U.S. employers are…

The cost of being a US citizen living abroad extends well beyond going through the motions of staying US tax compliant annually. It includes legal/accounting fees, huge failure-to-file penalties if late (totalling tens of thousands of dollars), staying on top of the ever-changing US tax law landscape – not to mention the yearly stress, sleepless…

This blog is written by Rhéal Plamondon, Of Counsel to Moodys Private Client Law. The explosion of non-resident companies using the internet to sell their digital products and services without having the need for a permanent establishment in any country has been a topic of tax policy concern for quite some time. Up until just…

An individual who provides services may choose to incorporate for commercial or tax advantages. Depending on the circumstances, significant tax efficiencies can be gained by incorporating. These benefits include income tax deferral by earning and reinvesting business income through a corporation, preferential corporate tax treatment such as the small business deduction (SBD) for a Canadian-controlled…

   Sign up Moodys Tax+ to get access to our Kim G C Moody’s In Conversation series, featuring special guests:   Ken Kolby Dr. Jack M. Mintz MP Pierre Poilievre   With Moodys Tax+ you also get exclusive, members-only content:   Get access to a vault of valuable resources, blogs, and podcast episodes On-demand…

This blog post is authored by Carolyn Wong JD, Barrister & Solicitor. A determination of whether an employee or independent contractor relationship applies between parties will significantly impact tax obligation and liability. The determination will inform an employer’s or worker’s withholding and remittance obligations with respect to payroll and GST/HST and in some circumstances, cause…

With case numbers continuing to fall and vaccination rates climbing, the Canadian government announced measures that would significantly ease restrictions for US citizens traveling to Canada.

“The challenge is not so much to change the sound. The challenge is to connect and to create something special.” – Gustavo Dudamel, Conductor A violinist, an oboist, and a cellist can all, individually, play beautiful pieces of music. But to play something as powerful as a symphony requires a full orchestra. Each member works…

Whether you are a NCAA sports fanatic or not, you may have noticed the groundswell of support for college student athletes (#NotNCAAProperty) getting a piece of the billions in revenue earned by the NCAA and its member colleges. What’s Happening? In recent years, several states have passed laws allowing college athletes to earn endorsement money…

This blog is co-written by Eric Noble-Marks (Harvard Law Student and Summer Law Student for Moodys Tax) Do you enjoy soaking up the sun in Malibu, surfing the waves in Maui, letting loose for a weekend in Vegas, or treating the kids (or yourself) to The Wizarding World of Harry Potter in Orlando? Are you looking…

This blog is co-written by Eric Noble-Marks (Harvard Law Student and Summer Law Student for Moodys Tax) As of July 6, 2021, certain fully vaccinated travellers will be able to enter Canada without a period of mandatory quarantine. Public Health Canada has just announced the easing of border measures for certain travellers entering Canada, much to…

Does a US Citizen Living Abroad Have To Pay Taxes? Read this blog to get the answers to your most pressing questions about living abroad as a US Citizen. While it’s hard to know the exact number, some estimates suggest that around eight million US citizens call somewhere other than America home. The reasons for…

Background Creditor-proofing involves improving the ranking of a corporate shareholder (“Holdco”) of an operating subsidiary corporation (“Opco”) from ranking behind unsecured creditors of Opco to ranking ahead of them as a secured creditor. The benefit is that in the event of a future insolvency of Opco, Holdco will be entitled to recover on its investment…

This blog is co-written by Eric Noble-Marks (Harvard Law Student and Summer Law Student for Moodys Tax) Have you heard the rumours? According to reports in several media outlets, Prime Minister Trudeau is preparing to loosen quarantine requirements for fully vaccinated travellers. Since early 2020, most travellers to Canada have faced required PCR Covid testing prior…

This blog is co-written by Eric Noble-Marks (Harvard Law Student and Summer Law Student for Moodys Tax) In a time of unprecedented restrictions on international business travel to the United States stemming from the COVID-19 pandemic, the White House, the US Department of State (DOS) and the US Department of Homeland Security (DHS) have made it…

The low interest rate environment has made the prescribed rate loan arrangement a very popular tool for income splitting with family members without generally running afoul of the tax on split income (TOSI) rules. However, if some of the family members are subject to US income tax, either because they are US citizens, US permanent…

Over the last week, there have been two significant US Citizenship & Immigration Services (USCIS) policy and process changes regarding Application Support Center (ASC) biometric appointments. What is an ASC biometrics appointment? Whether an individual is applying or petitioning to extend certain nonimmigrant statuses, US lawful permanent residence, naturalization, asylum, or various other immigration benefits…

Pursuant to President Biden’s latest “Proclamation on the Suspension of Entry as Nonimmigrants of Certain Additional Persons Who Pose a Risk of Transmitting Coronavirus Disease 2019,” beginning Tuesday, May 4, 2021 at 12:01 am ET, most travellers who have been physically present in the Republic of India during the 14-day period are barred from admission…

In this video preview, Kim G C Moody and Jack M. Mintz discuss the biggest economic challenges facing Canadians today and the need to build up productive capacity post-pandemic. This is the second video in a series of one-on-one interviews Kim G C Moody will be conducting with a variety of accomplished guests, all exclusive to…

On April 19, 2021, the Federal Government released its long-awaited budget. With a record 25 months between budgets, there was no shortage of predictions about the content. However, the night before, news services Reuters and the Globe and Mail released very detailed content about what to expect and such predictions from “sources” largely turned out…