Taxes aren’t the most exciting topic – we know! It is still necessary to pay them if you work and live in Canada. After the end of your tax year in Canada, you must keep your Canadian tax records for some time. This includes people on working holidays in Canada who move home when their…

In order to maintain a healthy business, it is essential to be educated and organized. Your business will be less likely to fail when you properly manage your finances. Be sure to pay yourself, maintain good credit, monitor your books, and plan to manage your company’s finances. In contrast, debt funding comes with interest fees…

How does CRA select taxpayers to audit? There may be no apparent reason for the Canada Revenue Agency (CRA) to audit a business or individual. A CRA audit can generally only be conducted four years after someone files their tax return. However, some cases, like those involving suspected fraud or misrepresentation, can go even farther…

How do U.S. LLCs work? In the United States, Limited Liability Companies (LLCs) are business entities created by state statutes. Canadians do not have this type of business structure. Limited Liability Companies cannot be formed in Canada; however, U.S. companies can still conduct business in Canada. As a general rule, LLCs with one member are…

The Canada Revenue Agency (CRA) administers federal taxes and various benefits programs on behalf of the federal government and the provinces and territories. The CRA audits taxpayers to maintain public confidence in Canada’s tax system. A CRA audit verifies that a taxpayer or business follows tax laws correctly, fulfills their tax obligations, and gets the…

Canada and the United States face unique and complex tax issues due to cross-border activities, such as financings, benefits, and losses. Tax legislation and regulations for cross-border taxation must be complied with to ensure dealings are structured so that you can maximize your tax efficiencies and minimize tax liabilities. A non-compliance has the potential to…

In this article, we are going to discuss what is inbound and outbound cross-border taxation. We will go through both categories one by one explaining with the help of straightforward examples.  We begin by examining multinationals based in a home country that invest at home or abroad. To keep things simple, multinationals finance subsidiary investments…

It does not matter if you are a real estate owner or just starting with your first rental unit. If you get money in return for that rental space, your silent investor will need its share.  Have you ever heard of this silent investor?  We are talking about the CRA Canadian Revenue Agency who always…

What is a cross-border payment? And how do cross-border transactions work? These two questions can get tricky to understand sometimes. Cross-border payment is a transaction of funds sent from one entity to another to a recipient in another country. In most cases, the person who is sending and the person who is receiving do not…

Canada’s tax system is somewhat complex and puzzling for some citizens, especially newcomers. Recent immigrants may find some difficulties when they first arrive. Depending on their tax situation and family structure, some new citizens may get tax breaks only if they are eligible. There are some benefits that these newcomers can claim. To help them…