Cross Border Tax Consultants

    No doubt, Canada is one of the top destinations for business immigration. There are many reasons for businesses to move to Canada. Whether you are looking for a politically and economically stable country, proximity to the United States, an OECD country or the next generation global leader in Research and Development – Canada is the place to be! Canada’s attractiveness makes it an ideal immigration destination for individuals who are running successful businesses in their home countries. Here comes the challenging part: How to immigrate to Canada under a business or investor visa? Well, the immigration process is not that simple and you will be needing a licensed immigration consultant in Canada. (We can recommend the one, but we do not prefer to mention here). In the application process, usually, most of the provinces require to submit the business concept and later on a detailed business plan. This is where a lot of entrepreneurs and investors lose their chances desp...

    The United States uses a Substantial Presence Test (SPT) to determine if an individual needs to report its income to the IRS. When you spend so much time, even without undertaking any economic activity. Substantial presence test (SPT) uses a specified formula to determine the number of days in current and two preceding years. Add the below and if the result is equal to or more than 183 days, you need to file a U.S. income tax return. 1. Total number of days in the current year – 1X 2. Total number of days in the first preceding year – 1/3X 3. Total number of days in the second preceding year – 1/6X If you spend a minimum of 31 days in the current year and the result of the above formula is equal to or more than 183, you have met the SPT. For Canadians spending winter in the United States, it's very easy to meet this substantial presence test and become subject to U.S. income tax. Relief for Canadian Snowbirds from U.S. Taxes If you spend less than 183 days in th...

What is “notice to reader financial statements”? Financial statements of a business show the financial position and performance of that business over a certain period. Generally, there are three financial statements: 1. Balance sheet: Also knows a statement of financial position 2. Income Statement: Also knows as a statement of financial performance 3. Cash flow statement Notes are often attached with these financial statements, however, if you are a small business the management may decide to not prepare them. In all cases, a balance sheet and an income statement must be attached. Notice-to-reader refers to a notice, signed by a registered CPA firm, cautions the readers of these financial statements about the level of involvement of the professional accounting firm. Further, you can use either Accounting standards for private enterprises (ASPE), or International Financial Reporting Standards (IFRS) in Canada. Read more about Notice-to-Reader Financial Statements here . Who ...

As per the income tax laws and rules in Canada, tax residents of Canada must report their worldwide income. Often, taxpayers miss reporting their income or assets. Such non-compliance can be either intentional or unintentional. Taxpayers who have not reported their income in Canada when they should have, are always on the hook for penalties. If the amounts involved are not substantial, normal penalties apply. However, when the tax omissions cross certain thresholds or are intentional, there are gross negligence penalties and even criminal prosecution.     CRA Voluntary Disclosure Program Luckily, CRA runs a program called the Voluntary Disclosure Program a.k.a. VDP. Under the voluntary disclosure program, taxpayers are granted relief from the penalties and the criminal prosecution. In some cases, interest amounts are reduced as well. VDP Application Requirements For an application to qualify under the CRA VDP program, it must meet the following five conditions. 1. The app...