This update is intended for those seeking additional insights into the Fall Economic Statement 2022 including its impact on both domestic and multinational enterprises.
Continue reading



TaxEd International | Fasken Tax Blog
Trends, analysis and insights in international tax
This update is intended for those seeking additional insights into the Fall Economic Statement 2022 including its impact on both domestic and multinational enterprises.
Continue readingOn December 8, 2020, Bill 213, Better for People, Smarter for Business Act, 2020 received royal assent. The bill includes significant amendments to the Business Corporation Act (Ontario)[1] (the “OBCA”). The amendments to the OBCA in Bill 213 were proclaimed into force on July 5, 2021.
Bill 213 eliminates the requirement that 25% of the directors of an Ontario corporation must be resident Canadians.[2] This means that non-residents may incorporate an Ontario corporation without necessarily retaining a Canadian resident as a director of the corporation (as already permissible in other jurisdictions).
In light of the new changes, many non-residents will likely consider incorporating an Ontario subsidiary to facilitate acquisitions, tax planning, and investment-related activities. This article highlights some of the (new) corporate and tax advantages of incorporating an Ontario subsidiary by such persons.
Continue readingThe 2021 Federal Budget devoted an additional $304.1 million to the CRA to help it combat tax evasion and aggressive tax avoidance. The federal government expects to recover $810 million in revenues over five years.
Based on public documents and information gathered from the CRA and DOJ, we have generated the below list of CRA audit activities already underway and expected to increase over the next couple of years. Even if a taxpayer has done nothing wrong, they may still have to convince eager auditors that they have complied with the law.
2. Gains or Income from Cryptocurrency Transactions
3. Transfer Pricing Transactions
4. Transactions Involving Treaties
5. GST/HST Avoidance and Evasion
6. Tax Evasion Involving Trusts
7. Shareholder Benefits
Le budget fédéral pour l’année 2021 a alloué un montant additionnel de 304.1 millions de dollars à l’ARC afin de l’aider dans sa lutte contre l’évasion fiscale et l’évitement fiscal agressif. Ce faisant, le gouvernement fédéral prévoit récupérer 810 millions de dollars au cours des cinq prochaines années.
À partir de la documentation et des informations publiques provenant de l’ARC et du Ministère de la Justice du Canada, nous avons mis en place la liste ci-dessous présentant les activités de vérification actuelles de l’ARC et qui sont sujettes à s’intensifier aux cours des prochaines années. Même si un contribuable n’a rien à se reprocher, il risque d’être tenu de convaincre les vérificateurs soucieux qu’il s’est véritablement conformé à la loi.
1. Demandes de subvention salariale d’urgence du Canada
2. Gains ou revenu provenant des transactions de cryptomonnaie
3. Opérations de prix de transfert
4. Examen et vérification des transactions impliquant des conventions fiscales
5. Vérification de la TPS/TVH contre l’évitement et l’évasion
6. Enquête sur l’évasion fiscale impliquant des fiducies
7. Vérification des avantages aux actionnaires
Unsurprisingly, the Canada Revenue Agency (“CRA”) followed the Internal Revenue Service (“IRS”) in seeking a court order for records from cryptocurrency exchanges. The tax authorities prevailed in both cases, increasing the transparency of cryptocurrency trading and investing.
Especially in its earlier days, cryptocurrency had a reputation as an underground currency providing secrecy and facilitating black-market transactions. This notoriety began to recede when in November 2016 the IRS (the US tax authority) filed a generic request, known as a “John Doe” summons, on all U.S. Coinbase customers who had transferred Bitcoin between 2013 and 2015. The IRS initially sought all records, including third party information.
While the US District Court – California Northern District (San Francisco) (Case 3:17-cv-01431-JSC) found that the IRS request was broader than necessary, it nonetheless ordered significant disclosure from accounts having a minimum of $20,000 in any one transaction during the 2013 to 2015 time period. The disclosure included the taxpayer’s identification number, name, birthdate, address, records of account activity, and all periodic statements of account.
Continue readingRemote work has become a new normal for many employees and employers, offering benefits to both parties. However, the prevalence of remote work has created new legal and regulatory challenges for employers and, in particular, employers with employees working in new jurisdictions.
A non-resident employer may, for example, become subject to Canadian income tax if the employer has employees working remotely from a location in Canada. Canadian employers may also have additional tax considerations if they have employees working remotely in other provinces.
This article outlines some of the potential Canadian tax issues for employees working remotely in Canada and the Canada Revenue Agency’s (the “CRA”) guidance and administrative concessions for non-residents during the COVID-19 pandemic.
Continue reading