11.3 Explanation & Interpretation of Article XI under U.S. Law
11.3 Explanation & Interpretation of Article XI under U.S. Law 11.3.1 U.S Domestic Taxation of Interest Paid to Canadian Residents 11.3.1[a] Definition of Interest Interest has been broadly defined by the courts as representing the cost of using borrowed money, the amount which
The Timeline for US Expats to File Income Tax
The Timeline for US Expats to File Income Tax Just as any other citizen of USA, expats living and working in a foreign country are subjected to income tax laws. While there are some rules that differ from the tax laws
U.S.A tax filing if you move to Canada
If you are U.S green cardholder or citizen and wish to move to Canada, you need to do some planning before you make the move to Canada. Tax planning is absolutely different than tax preparation. Tax preparation is solely based on
Awareness Key to Canadian Non-resident Tax Payment
Awareness Key to Canadian Non-resident Tax Payment The golden rule of paying taxes all over the world applies to Canada as well: it is your prerogative to know the rules and follow them. When you are caught unaware or in the
Payroll Success Story
Payroll Success Story We were approached by a US based company (xyz) who is selling their industrial products in Canada. They have one employee in Toronto who does their web marketing. In year 2017 this employee made Can $105,000 An employer in
Net Investment Income Tax (NIIT)
The NIIT is a tax at the rate of 3.8% that is applied to many different investments and is assessed on trusts, estates and individuals if their income is above the statutory threshold amounts. Individuals who are exempt from Medicare taxes,
11.2.2 Canadian Interpretation of the Treaty
11.2.2[a] Article XI(1) – Residence-based Jurisdiction to Tax Article XI(1) confirms the jurisdiction right of Canada to impose tax on the interest arising from the U.S. sources and paid to a Canadian resident. Secondly, Article XI(1) defines the scope of payments that
CRA Interest and Penalties
Interest CRA will charge you compound daily interest on any unpaid amounts you owe. In addition, CRA will charge you interest on the penalties starting the day after your filing due date. Rate of interest CRA charges can change every three
Part XIII Tax
Part XIII tax is a withholding tax imposed on certain amounts you pay or credit to non-residents. These amounts include: Pensions, annuities, management fee, estate or trust income and payments for film or video acting services. You are responsible for withholding
Electing under Section 216 of the Income Tax Act
What is a section 216 return? As a non-resident of Canada, one can choose to file a separate income tax return for rental income earned in Canada. Choosing to send this return is called electing under section 216 of the income