Hodgson Russ LLP (JD Supra Canada)

23 results for Hodgson Russ LLP (JD Supra Canada)

  • To Register or Not to Register: A Primer for Ontario Investment Advisers

    If you are an investment advisor registered by the OSC or other Canadian provincial regulator, you may have cast longing eyes at taking on a couple United States clients, yet also considered with some trepidation whether such a step requires registering with the Securities and Exchange Commission (“SEC”) under the United States Investment Advisers Act of 1940.

  • Wayfair and Its Potential Income Tax Implications for Canadian Businesses

    In the United States, each state may impose its own sales tax, which may require a business to collect and remit sales tax on its taxable sales in the state. This sales tax obligation is not limited to US businesses, but may also apply to Canadian businesses. Originally Published in Canadian Tax Highlights - October 2019.

  • Exceptions to the US Residency Substantial Presence Test

    An individual will be considered a US resident for income tax purposes if he or she meets the substantial presence test for a particular year. This is a mathematical day-count test to deter- mine whether one is a US resident for the year. Originally posted in Canadian Tax Highlights - July 2019.

  • Canadian Trust Subject to US Tax

    In today’s mobile society, often an extended family member may move to the United States, and suddenly a strictly Canadian estate plan has a US beneficiary. When the move occurs, Canadian practitioners should review the existing estate plan to determine what updates may be needed to make the plan more tax-effective on both sides of the border. Originally published in Volume 27, Number 6,...

  • US Tax Basis Inherited From Foreign Decedent

    Under IRC section 1014, the cost basis of a property received from a decedent is generally stepped up (or down) to the property’s FMV on the date of death. This basis adjustment can yield a substantial tax benefit for the recipient, particularly for appreciated property, because all appreciation during the decedent’s life escapes income taxation on a subsequent sale. Originally Published in...

  • Due Date for IRS Form 3520 for Non-Residents

    IRS form 3520 must be filed if, in the year, a US citizen or resident was the grantor of a non-US trust under US grantor trust rules; transferred certain property to a non-US trust; received a distribution or a loan from a non-US trust; or received a gift or bequest (in excess of US$100,000) from a non-US individual or estate. Originally published in Canadian Tax Highlights - March 2019.

  • IRS Scrutinizes US PE Positions Under Treaty

    Under the US Internal Revenue Code, a Canco that carries on a trade or business in the United States is subject to US corporate income tax on income effectively connected with that trade or business. The Canco is subject to US income tax only on its profits attributable to a US permanent establishment (PE), but if eligible the Canco can elect taxation under article V of the Canada-US treaty. ...

  • Proposed US Residence-Based Taxation

    US citizens living abroad are subject to very complex information reporting rules and filing requirements each year. US citizens, regardless of where they reside, are required to file a US income tax return each year and report annually any worldwide income, including any income from foreign assets. Originally published in Canadian Tax Highlights, Volume 27, Number 1 - January 2019.

  • Wayfair Is Applicable to Canadian Vendors

    On June 21, 2018, the U.S. Supreme Court (the “Court”) sent a shockwave through the Internet—and the state and local tax (SALT) community—by issuing its long-awaited decision in the South Dakota v. Wayfair case which resoundingly overturned the Quill physical-presence nexus standard that had been the law of the land for sales tax purposes for the past several decades.

  • U.S. Subsidiaries of Canadian and Other Foreign Companies Face Imminent Reporting Deadline For U.S. Federal Survey

    Every five years, the Bureau of Economic Analysis of the United States Department of Commerce (BEA) conducts a comprehensive survey of financial and operating data of U.S. subsidiaries of foreign companies.

  • Health Insurance for U.S. Employees - A New Option for an Old Problem

    There is good news in the world of U.S. health insurance laws, at least for Canadian companies with fewer than 50 full-time U.S. employees. Effective this year, it is now possible to directly reimburse employees for the cost of obtaining a policy on the open market, with the same favorable tax treatment as the provision of a policy through an employer-sponsored plan.

  • Limited Liability Companies: A Primer for the Canadian Finance Lawyer

    The use of limited liability companies in the United States has expanded dramatically over recent years. A limited liability company (LLC) offers its owners protection from liability like a corporation, but with the advantage of pass through tax treatment under US tax laws.

  • US Citizenship Renunciation Procedures in Canada

    The US constitution protects a US citizen from automatic loss of citizenship. Expatriation can only occur through the voluntary, intentional commission of an expatriating act that is stipulated by statute. A person who committed such an act in the past (for example, through naturalization to Canadian citizenship) can memorialize the loss of nationality by making an appointment for and receiving a

  • Ontario PPSA Amendments – Is there greater harmony with the UCC?

    At the end of last year, I received bulletins from Ontario law firms alerting that the amendments to the Ontario Personal Property Security Act (“PPSA”) changing the definition of the “location” of the debtor in the PPSA choice of law rules had been proclaimed and would take effect on December 31, 2015 (the “PPSA Amendments”).

  • Canadian Trademark Changes Delayed Once Again – Five Things to Do While You Wait

    Canada is a critical U.S. trading partner. Products and services move fluidly across the border, which makes protecting trademarks in Canada exceptionally important for U.S.-based companies. However, Canada’s anachronistic trademark laws have long been a source of confusion and frustration.

  • IRS Guidance on FBAR Penalties

    On May 13, 2015, the IRS issued interim guidance to its examiners regarding penalties for failure to timely file the Report of Foreign Bank and Financial Accounts (FBAR). By no later than May 13, 2016, this interim guidance will be incorporated into the existing guidance in Internal Revenue Manual (IRM) sections 4.26.16 and 4.26.17. The guidance was effective upon issue, and it applies to all...

  • Obama 2015 Tax Proposals

    President Obama’s State of the Union address, delivered on January 20, 2015, proposed three significant changes to US federal tax law: (1) an increase from the current 20 percent rate to 28 percent for the top federal capital gains and dividend tax rates applicable to high-income taxpayers (spouses with combined income exceeding about $500,000)... Originally published in Canadian Tax...

  • New York Nexus Widens

    Earlier this year, New York State became the latest US state to adopt an economic nexus standard in order to subject an out-of-state corporation to state-level corporate income and franchise tax. New York’s bright-line provision, effective for tax years beginning after 2014, imposes a corporate franchise tax filing obligation on an out-of state corporation that derives more than $1 million in...

  • The Comity of Nations in a Technological World: Beyond the Border Action Plan

    Canada and the United States share the world’s longest international border – more than 5,500 miles coast to coast and more than 7,000 miles when Alaska is included. In 2013, Canada and the United States engaged in more than $600 billion in trade, and that was just in goods, not including trade in services. There are approximately 120 staffed ports of entry (POEs) along each side of the border,...

  • What U.S. Businesses And Others Need To Know About The New Canadian Anti-Spam Law

    A new Canadian law taking effect on July 1, 2014, will impact businesses -- whether located in Canada, the United States, or elsewhere -- that send commercial electronic messages to computers located in Canada or that install computer programs on devices in Canada. The wide-ranging law covers, for example, a U.S. business that sends an e-mail to a Canadian customer or provides a mobile app to be...

  • Canada And U.S. Finally Reach Agreement On FATCA

    The long awaited Foreign Account Tax Compliance Act United States – Canada Intergovernmental Agreement (IGA) was released on February 5, 2014, and as anticipated will expand the sharing of information between the two countries with the goal of reducing perceived offshore tax evasion by U.S. citizens holding assets through non-U.S. financial intermediaries.

  • IRS: No FTC For 3.8 Percent NIIT

    No significant US tax changes are set to take effect in 2014; in contrast to last year, taxpayers are not standing on the edge of a fiscal cliff. Recently, however, the IRS released final Treasury regulations (TD 9644, November 26, 2013) for the 3.8 percent net investment income tax (NIIT) and confirmed that FTCs cannot offset it.

  • Possible PFIC, Possible Relief

    Many a US taxpayer who holds shares in a Canco may be subject to the onerous US passive foreign investment company (PFIC) tax regime. Although the PFIC rules are designed to eliminate the benefit of a US tax deferral on passive income earned by a corporation, active corporations such as startup businesses or certain sales or service companies may inadvertently fall into the PFIC category.

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