Cross Border Tax Consultants

Worried about filing your income tax returns? Did you forget to consider your foreign rental income? Now you are worried about the penalties. What if we tell you that there is a way around it? So, can you really avoid penalties on T1135 late filing? Read on to learn more. What is the T1135 Form? The CRA, short for the Canada Revenue Agency uses the T1135 form to obtain information on the number and income generated through foreign assets that are held by the residents of Canada. Form T1135 is also known as Foreign Income Verification Statement. Who should Fill it? You must file the T1135 form, also known as the Foreign Income Verification Statement if you own foreign property worth more than 100,000 Canadian Dollars at any time during the year. This is applicable to all individuals, trusts, and partnerships. When completing the foreign income verification statement, you must consider the property's cost rather than its current value. An individual need not complete the T1135 f...

Some taxpayers may become very fearful at the thought of having to reopen a filing or make revisions to file back taxes with the CRA (Canada Revenue Agency). But CRA’s Voluntary Disclosure Program (VDP) can benefit someone in this circumstance. The Voluntary Tax Program is worth taking benefit of if you know that you’re going to owe taxes & penalties will be appraised. But it is essential that you meet all 5 conditions set by Canada Revenue Agency to be eligible.   The Voluntary Disclosure Program isn’t part of the Income Tax Act but merely a compliance measure approved by parliament to provide CRA unrestricted powers over the upshot of your disclosure. The 5 conditions that must be met under the Voluntary Disclosure Program criteria are compulsory to use the program. To file under the VDP, you must meet all conditions: • The disclosure must be voluntary. If Canada Revenue Agency asks you for information or requests a filing before you choose to use Voluntary Disclosure Prog...

    Canadians love the warm weather of Florida and California. This is the reason lot of Canadians do own the properties in the U.S. If they are not living there, they are holding it for investment purposes. There are many income tax issues Canadians should b aware of while selling their U.S. properties. For a detailed information on the tax issues involved with sale of U.S. properties, read here . • Under Foreign Investment in Real Property Tax Act aka FIRTPA, the buyers are required to withhold 15% of the sale price and remit to IRS. There are exception involved, for more details refer to the link mentioned above. • A U.S. ITIN also known as US TIN or individual income tax number is needed whenever a US property is sold to ensure withholding taxes are credited to right account by the IRS. An ITIN is also needed when the seller want a reduced withholding rate. • Seller must file a U.S. federal tax return. For this purpose form 1040NR is used to report gain or loss. FIRTPA...

When it comes to moving to a foreign country, there’re many tax concerns that has to be reassessed which could significantly impact your cash flow position at the move. Every resident of Canada is subject to Canadian income tax on his or her own worldwide income. That means that a Canadian resident has to report not just their Canadian source income, but also all other sources of income from outside Canada. When emigrating from Canada , you will become a non-resident of Canada by filing a final Canadian income tax return for the year of emigration, also known as emigrant tax return. If this is the scenario, you’d no longer be needed to pay income tax on any income that are foreign sourced O(after emigration). You’ll still be needed to pay Canadian income tax on particular Canadian sourced income, which will be dependent on the country in which you want to dwell and the treaty between that country and Canada.   Filing a departure income tax return for the year of immigration can be...

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...

Are you looking to incorporate your business in Canada but not sure how to get started? Here is a brief overview of the general steps involved to set up a corporation in Canada. Make sure whether you need to incorporate your business or not: Often people just want to incorporate their business without considering the tax consequences of the same decision on personal tax situation. At Maroof HS CPA Professional Corporation, we recommend to thoroughly analyze your situation and then decide if you need to incorporate your business. If not sure, feel free to consult an accountant specialized in corporate & personal tax services. There are many other ways to achieve liability protection and tax efficiency. Choosing between federal incorporation and provincial incorporation: Once you decide to incorporate your business in Canada, the next step is to decide the jurisdiction under which you can incorporate. In Canada, businesses can be incorporated either at the Federal level or provinc...

Know your income tax obligations as an online seller in Canada? Being a Canadian resident, your worldwide earning is subject to Canadian tax. Whether you run your business as a sole proprietor or a partnership, you’ll have to fill out form T2125 for your Amazon e-commerce business earning from all countries. In the event you run more than one business, you’ve to fill separate T2125 forms for each business type. If you run a corporation, you’ve to file a T2 for your company inside 6 months of the financial year-end. If you’re a Canadian having a US e-commerce store, feel free to get in touch with the income tax professionals at Maroof HS CPA Professional Corporation . We would love to explain all your income tax obligations as an online seller in Canada. Become An Online Seller –Start Selling In The US from Canada: The United States is a massive market of over 300 million customers who welcome overseas products. So, with the right business strategies and professional assistance Cana...

Yes, they can open! Earlier, you required to open an individual Amazon seller account for each Amazon marketplace: one account for amazon.co.uk, another for amazon.com, another for amazon.ca, and so forth. Fortunately, today Amazon gives an NAUA (North America Unified Account) with which you are automatically set up to sell in all three North American marketplaces: the US, Canada, and Mexico. By using the same account, you can manage your listings in all these marketplaces. Fees & taxes when importing to the US: If you are fulfilling your orders yourself, you will have to deal with US imports every time you get an order there. In fact, you will likely still have to deal with US importing laws even if you do FBA (Fulfilled by Amazon), as you have to send your merchandise off to one of Amazon’s US warehouses. In one way or another, you may discover yourself needing to reimburse a range of taxes and fees, which can differ widely depending on what you are importing, where it is goi...