|
March 2003
The
CEN-TAPEDE
Newsletter of: the CEN-TA Group
In This Issue:
Hi
David
My
husband and I are Canadian citizens and we bought an RV lot in
Arizona
in 1999 for $23,413.50.
We
are now selling the lot for $25,900.
Property
taxes totaled $778.70 and caretaker/other costs totaled approx. $2786.00.
We
had no gain on sale of the lot.
What
should we do regarding the
U.S.
tax rules (with-holding tax requirement etc) and getting back any money
they with-hold from us? What
forms are we required to complete?
Thank
you very much for your help.
XXX
XXXXXXX
Sherwood
Park
,
Alberta
-----------------------------------------------
david
ingram replies.
Withholding
10% is a federal law which applies to the purchaser when the vendor is a
non-resident who does not have a clearance certificate from the US IRS
the
same thing happens in reverse when the vendor is a US resident and is
selling something like a Whistler condominium. In the case of the
sale by the US resident, Canada requirtes the withholding of 25% of the
gross sale unless a form T2062 is submitted to the CCRA and a Canadian
Clearance certificate issued.
With
the hundreds of forms in the US system, however, there is no IRS form
similar to the Canadian T2062.
To
get an exemption from withholding you have to write a letter to:
IRS
Office of International Operations
11601 Roosevelt Boulevard
Philadelphia, Pennsylvania,
USA 19255
In
the letter you should include the originals of all your costs associated
with the lot. Note that travel expenses from Canada are NOT
going to be allowed as a deduction against a possible capital gain. I
have taken the following cost and sale amounts from my August, 1994
newsletter. You can find the whole newsletter at: CEN-TAPEDE
August 1994
I have pulled the list out and put it here:
Calculating the Adjusted Cost base of a piece of US
Real Estate.
When calculating the
profit or loss on the sale of a US property, one must first determine the
basis or adjusted cost base of the property. The usual method is to take
the purchase price and add or subtract relevant amounts.
Examples
of Increases to Basis (Additions to cost price):
*
Purchase price of the property plus any appropriate taxes PLUS:
* An addition to the
property (new room, lift and put a basement underneath).
* Replacing an entire
roof.
* Paving a driveway,
or building a driveway, or an approach bridge or culvert.
* Installing central
air conditioning.
* Legal fees and
closing costs to purchase property.
* Survey costs,
fencing, digging or drilling a well.
* Installing septic
tank or alternative energy source.
* Rewiring building,
replumbing entire building.
* Assessments for
local improvements: water connections, sidewalks, roads.
* Casualty Losses -
restoring damaged property.
* Interest and taxes
not used as a deduction in other years (US only).
Examples
of Decreases to Basis:
* Exclusion from
income of subsidies for energy conservation measures.
* Insurance
reimbursements.
* Casualty or theft
loss deductions.
* Easements (amount
received for granting an easement).
* Credit for qualified
electric vehicles, (amount of the credit).
* Gain from sale of
old home on which tax was postponed (family residence only).
* Residential Energy
Credit: Amount of the credit if the cost of the energy item was previously
added to the basis.
* Section 179
Deduction.
* Deduction for
clean-fuel vehicles and clean-fuel vehicle refueling property.
* Depreciation: The
greater of the depreciation deduction which decreased your tax liability
for any year or the deduction you could have claimed under the depreciation
method selected.
* Corporate
distributions: Non-taxable amount.
Keep a photocopy of all the receipts you send. And send the originals
because they do not want copies. They will send them back to you.
Ask for a waiver of the tax. It will usually take about 90 to 120
days.
In your case, there is not likely going to be any withholding. However for
someone else's benefit, it\f it ended up that there was still a $10,000
profit on a $100,000 sale, the purchaser has to hold back 10% of the
$10,000 and remit the $1,000 to the IRS on an 8288 form.
If the lot was in California, there would be a state withholding of 3% and
if the lot or condo was in Hawaii, the withholding is 5% for the state.
Even if there is not withholding, you still have to file a tax return each
to report the sale. Failure to file the tax return as a non-resident
with US source income is a minimum fine of $1,000 each to a maximum of
$10,000. I have seen a 105 year old woman fined $10,000. It is
just like a parking meter ticket.
You also need Individual Taxpayer Identification Numbers to file the US tax
returns and you should have them BEFORE the sale so that the escrow
agent can properly identify the sale against your number and not get your
sale mixed up with the other 5,285 John smith's who file tax returns.
You get your ITIN by filling out a form W7 and sending it to Bensalem.
Remember you both need an ITIN and you both have to file a tax return. You
can get the W7 here:
AND, for those individuals who are living in the USA and have a piece
of property in Canada, the Canadian exemption form can be found at:
Remember that the sale has to be reported on your Canadian Income tax
return as well.
Last but not least, we are a firm that specializes in the
type of work you need. D'Arcy von Schleinitz or Sonja Clark CA, CPA, LLB in
the office below can help you with ease.
Thanks
Hendrik, I was only referring to the 48 Commonwealth countries who are no
longer exempt after March 17. All other exempt countries are still
exempt of course.
The
reason I only mentioned Ireland, Australia, Brunei, New Zealand and
the United Kingdom was that they were the only "commonwealth"
countries which were still entitled to the visa waiver program. It
was a "massive shift" in policy. I am passing this along
now though because I should have listed the other exemptions.
Interestingly, the
Swedish lady I mentioned is a Swedish "Student" and
"does" have to get her passport stamped at the consulate
according to the last answer I received from my own semi private lines that
bypass the switchboard.
Again
thanks for participating and if anyone else has a comment from their own
experience, please contribute.
Please note the countries approved under the VISA Waiver Program:
Visa Waiver Program
The visa waiver program allows many citizens of
designated countries to apply for admission to the United States as
visitors without first obtaining nonimmigrant visas at United States
Embassies or Consulates. They are:
| ANDORRA |
FINLAND |
LIECHTENSTEIN SLOVENIA |
| ARGENTINA |
FRANCE |
LUXEMBOURG |
SPAIN |
| AUSTRALIA |
GERMANY |
MONACO |
SWEDEN |
| AUSTRIA |
ICELAND |
NETHERLANDS |
SWITZERLAND |
| BELGIUM |
IRELAND |
NEW ZEALAND |
UNITED KINGDOM |
| BRUNEI |
ITALY |
NORWAY |
|
| DENMARK |
JAPAN |
SAN MARINO |
Hendrik
(this refers to the next item below)
As far back
as Dec, 1999 I was predicting a heavier hand on the US / Canada Border and
went so far as to tell a seminar at the Vancouver Public Library that we
could all expect Israeli type inspections at the Vancouver Airport.
Then, on January 8, 2000, Ian Mulgrew said the same thing in the Vancouver
Sun.
On February
27, 2003 Senator Susan Collins (a Republican Senator from Maine) said,
"Most members of Congress believe Canada is a wide-open Gateway for
terrorists seeking to enter the United States" She then went on
to state that "Canadian immigration is looser than in the U.S. and
more porous and represents a vulnerability". If you thought
Senator Collins is "just another Senator" who doesn't know
anything about Canada, you would be wrong. Senator Collins grew up in
Caribou, Maine 15 miles as the crow flies from the New Brunswick
border and only about 100 miles from Quebec. She has crossed the
border many times.
In
addition, Senator Collins is also the CHAIR of the Senate committee
overseeing the Department of Homeland Security. In other words, Senator
Collins chairs the committee responsible for security along the US/Canada
border and "she" thinks we are porous.
What does
this mean?
Canadian
CITIZENS should be prepared to present a passport or
at least two pieces of picture identification at the US
border when going south or even north to Alaska.
The big
pressure that is a little surprising is that Landed
Immigrants are now going to have to get visas from the US Consul
AND it can take up to 60 days to get one. If you live in Vancouver,
that can be alright. If you live in Kamloops or Prince George and
want to go to Hawaii, you will have to come to Vancouver first, get your
visa and then make your trip a couple of months later or figure out how to
get it by mail. And how about living in Atlin, BC or even Stewart BC
and wanting to visit Skagway or Hyder, Alaska.
Canadian landed immigrants
holding British Commonwealth Citizenship
Canadian Landed Immigrants
from Commonwealth countries have usually been
exempt from having to obtain a
visa stamp or waiver in their
passports before entering the United
States.
But, no
more. Starting on St Patrick's Day, March 17, 2003, with
the exception of Australia, Ireland, New Zealand, the United Kingdom (AND its colonies,
territories, and dependencies) and Singapore, All other
landed Immigrants to Canada will have to get a
visa at a U.S. consulate before entering the
United States.
If you happen to be in Toronto, you have to deposit a $100.00
applicant fee to a special account at the Bank of Nova Scotia BEFORE
you apply. (see below)
We all remember Sept 11 and the sad
fact is that most Americans still believe that most of the Sept 11
terrorists entered the United States
from Canada. As a consequence and to appease the Pat Buchanan
types, Canadian Landed Immigrants will now have to obtain visas to
visit the US.
Starting on March 17,
2003, MOST
Commonwealth Landed Immigrants will need to make
an appointment at a U.S. consulate and appear "IN
PERSON" for an interview
before a visa will be issued to them.
I do not
know when the last time you went to the US Consulate in Vancouver
was, but the lineups are already getting longer and it
could easily take two months to find an appointment time that fits your
schedule and that of the Consulate.
I had a young lady from Sweden here the
other day and she had been trying to get through by phone for two
weeks. Adding Commonwealth countries will likely quadruple the
waiting times.
If you are
a landed immigrant and intend to go the United States any time soon, either
go before Mar 17th or get in line for your appointment now.
This new visa requirement applies to landed immigrants of Canada who are
citizens of Antigua & Barbuda, Grenada, Namibia, South
Africa, Guyana, Nauru, Sri Lanka, Bahamas, India, Swaziland,
Bangladesh, Nigeria, Tanzania, Barbados, Jamaica, Pakistan,
Tonga, Belize, Kenya, Papua New
Guinea, Trinidad & Tobago, Botswana, Kiribati,
Samoa, Tuvalu, Brunei, Lesotho, St. Kitts & Nevis, Uganda,
Cameroon, Malawi, St.
Lucia, ), Cyprus, Malaysia,
St. Vincent & the Grenadines, Vanuatu, Dominica, Maldives,
Seychelles, Zambia, Fiji, Malta, Sierra Leone, Zimbabwe, Gambia,
Mauritius, Singapore, Ghana,
Mozambique, and the Solomon Islands.
You
can get specific details from the US Embassy in Ottawa's web site at
www.usembassycanada.gov
and
the following is taken directly from that site and gives directions for
those planning to use different Consulates and the Ottawa Embassy.
----------------------------------------------------------------------------------------------
Embassy of the United States of
America, Ottawa, Canada
Public Announcement Concerning Visa Requirements for Permanent Resident
Aliens of the Commonwealth and Ireland (Landed Immigrants) Residing in
Canada
1. Beginning March 17, 2003, except as noted below, all landed
immigrants in Canada seeking to enter the United States as
non-immigrants must possess a valid passport and non-immigrant
visa in order to enter. Please note that there is no change to the
Visa Waiver Program in place for the countries in bold italics below or for
any other countries participating in that program. The new requirement
will apply to citizens of the following countries who were formerly
exempt from visa requirements:
| Antigua & Barbuda |
Grenada |
Namibia |
South Africa |
| Australia |
Guyana |
Nauru |
Sri Lanka |
| Bahamas |
India |
New Zealand |
Swaziland |
| Bangladesh |
Ireland |
Nigeria |
Tanzania |
| Barbados |
Jamaica |
Pakistan |
Tonga |
| Belize |
Kenya |
Papua New Guinea |
Trinidad & Tobago |
| Botswana |
Kiribati |
Samoa |
Tuvalu |
| Brunei |
Lesotho |
St. Kitts & Nevis |
Uganda |
| Cameroon |
Malawi |
St. Lucia |
United Kingdom
(its colonies, territories, and dependencies) |
| Cyprus |
Malaysia |
St. Vincent & the Grenadines |
Vanuatu |
| Dominica |
Maldives |
Seychelles |
Zambia |
| Fiji |
Malta |
Sierra Leone |
Zimbabwe |
| Gambia |
Mauritius |
Singapore |
|
| Ghana |
Mozambique |
Solomon Islands |
|
Please note: 1) Hong Kong nationals holding either British National
Overseas or Hong Kong Special Administrative Region passports will require
visas. 2) The countries in bold italics participate
in the Visa Waiver Program. Citizens of those countries are not
required to possess visas if they are traveling for business or tourism and
their stay will be less than 90 days. Non-Commonwealth landed immigrants
who are citizens of countries participating in the Visa Waiver Program are
unaffected by this regulation change.
2. Effective immediately, U.S. consular sections in Canada will accept
non-immigrant visa applications from landed immigrants residing in
Canada who are citizens of the Commonwealth countries listed above and
Ireland. Information about applying for non-immigrant visas, and
all necessary application forms, can be found at the following Internet
address: www.state.gov/travel. To
find the application forms, go to the "Visas" section on that
page, and click on "Visa Forms."
3. Commonwealth landed immigrants applying for non-immigrant visas
should submit the following:
 | evidence of landed immigrant status;
| a form DS-156, fully completed and signed. Separate forms must
be submitted for each applicant, even if applicants share a single
passport;
| an application fee in the amount of $100.00 U.S. per applicant,
payable in U.S. cash if applying in person or to the U.S. Treasury in the
form of a money order or certified check if applying by mail (**see
Toronto section below for special fee instructions for that consulate and
item 5 for mail-in criteria);
| a passport valid for travel to the U.S. The passport must have an
expiration date at least 6 months beyond the intended duration of the
visit;>
| 1 current (less than 6 months old) photo of the applicant, 50mm x 50mm
(2 inches x 2 inches), full face, without head covering, against a white
background;
| in addition to the form DS-156, all male applicants between the ages
of 16-45 must submit a completed and signed form DS-157, with
street addresses and telephone numbers where required;
| applicants for student (F or M) or exchange visitor (J) visas must
also complete a form DS-158;
| any appropriate supporting documents, such as proof of employment or
studies, home ownership or other commitments in Canada, and evidence of
any prior travel to the U.S.;
| applicants for student visas (F-1) must submit Form I-20,
applicants for exchange visitor visas (J-1) must submit Form DS-2019
(Form IAP-66, if issued and dated prior to August 31, 2002, is
acceptable) and applicants for H and L visas should submit Form I-797
and the supporting I-129; |
| | | | | | | |
(Note: All Forms I-20 and DS-2019 issued by the sponsoring institution
or exchange program on or after February 15th, 2003, must be issued from
within the U.S. Immigration and Naturalization Service's Student and
Exchange Visitor Information System (SEVIS). SEVIS-generated forms are
easily identifiable by the bar code on the right-hand side of the document.
Unlike most prior versions of Forms I-20 and DS-2019, these are one-page
forms.); Further information about the application procedure, supporting
documents, etc. can be obtained at www.state.gov/travel by going to the
"Visas" section on that page, and clicking on "Visa Services
for Foreign Citizens." Please do not call the Embassy or consulates
with questions.
4. Commonwealth landed immigrants in the Halifax, Quebec City and
Calgary districts may apply on a walk-in basis and should consult www.usembassycanada.gov
for the public hours. Commonwealth landed immigrants applying in Ottawa,
Montreal, Toronto and Vancouver should book appointments for a visa
interview. To book an appointment and obtain further information by
e-mail, use this web address: www.nvars.com
(cost: CD 10.00). If you do not have access to the Internet or if you need
an appointment on an urgent basis, you may also call the following numbers
in Canada: 1-900-451-2778 (cost: CDN2.00/minute) or 1-888-840-0032 (cost:
CDN1.50/minute with a credit card). Due to the heavy volume of calls,
booking via Internet for routine travel needs is the most cost efficient.
Travel plans should not be finalized until the visa has been issued,
as some applications may take up to 60 days after receipt to process to
completion.
5. The following persons ONLY may apply for their visas by mail if they
prefer (or diplomatic courier where available) to the addresses listed
below (see item 3 for required fees, payment method and recommended
documentation):
| Applicants for A, G and NATO visas;
| Bearers of diplomatic and official passports;
| Applicants 16 years of age or younger;
| Applicants 60 years of age or older. |
| | |
6. Completed applications are to be submitted to the consular section
with jurisdiction in the applicant's place of residence. Consular section
areas of jurisdiction, and mailing addresses where mail is permitted, are
as follows:
Consular Section, American Embassy Ottawa: Eastern Ontario (Kingston,
Lanark, Leeds, Prescott, Renfrew, Russell, and Stormont) Western Quebec (Gatineau,
Hull, Labelle, Papineau, Pontiac, Temiscamingue, Baffin Island, District of
Franklin).
Mailing address: Consular Section, American Embassy, P.O. Box 866, Station
B, Ottawa, ON K1P 5T1 (regular or express mail)
Courier Deliveries: Consular Section, American Embassy, 327 Rideau Street,
Suite 349, Ottawa, ON, K1N 1G7 (FedEx only)
American Consulate Toronto: Ontario (except for areas east of Kingston)
Mailing address: 360 University Ave., Toronto, ON M5G 1S4
**Individuals applying for visas in Toronto must first deposit the $100.00
U.S. application fee at any branch of the Bank of Nova Scotia (Scotiabank)
in Ontario. A special pre-coded 4-part deposit slip (one per applicant) can
be downloaded at www.amcits.com. It
can also be obtained by calling 1-900-451-2778, as part of the appointment
process at www.nvars.com, or in person
at 360 University, Toronto.
American Consulate Quebec: Northeastern Quebec (including Abitibi-West,
Abitibi-East, St. Maurice, Trois Rivieres, Nicolet, Wolfe, and Frontenac),
Nunavut
Mailing address: 2 Place Terrasse Dufferin, Quebec City, Quebec G1R 4T9
American Consulate Halifax: New Brunswick, Newfoundland, Nova Scotia,
and Prince Edward Island
Mailing address: Suite 904, 1969 Upper Water Street, Halifax, Nova Scotia
B3J 3R7
American Consulate Vancouver: British Columbia and Yukon Territory
Mailing address: 1095 W. Pender St., 21st Floor, Vancouver, B.C. V6E 2M6
American Consulate Calgary: Alberta, Saskatchewan, Manitoba, and
Northwest Territories
Mailing address: 615 Macleod Trail SE, Suite 1000, Calgary, Alberta T2G
4T8.
American Consulate Montreal: Southwestern Quebec (except for those areas
immediately east of Ottawa)
Mailing address: NIV Unit - CLI Program, P.O. Box 65, Postal Station
Desjardins, Montreal, Quebec H5B 1G1
End of Ottawa US
Embassy posting.
Remember, the CEN-TA Group is a group
of US Canada Tax professionals dedicated to making sure that your income
tax return fits your visa and your visa fits your job. See Contact
Us
david ingram -
J XXXXX XXXX
My question is: Applicable to both US and Canada
QUESTION: In January 2002, I am a Canadian citizen living and working in
BC. From March 2002 and onward, I lived and worked in Washington. I am not
planning on moving back to Canada in the next few years. I have not
contributed to rsp last year. I have not closed my Canadian stock account. I
have bank accounts and fixed income investments in Canada and the
Washington. I have rsp account in Canada and 401K in Washington.
1) Am I required to file a Canadian return on my US income from March
onward?
2) If yes, is there any way to reduce my taxable income (for example, can
I write off my US medical premiums)?
3) What can I do to prevent having to file in Canada?
---------------------------------------------------------------------------
david ingram replies
1. Even though you kept a lot of Canadians stuff, it sounds like you
moved to the United States. Article IV of the US / Canada Tax Treaty says
that you are taxable in the US on your world income and taxable in Canada on
your January and February income.
2. My answer is no. However, you do have to file a departing Canadian
return which means that we have to calculate the value of your stock account
and pretend that it was sold the day you left Canada. Your US return is
called a Dual Status Return. You should send them to us in West Vancouver
because you will not find anyone to do the two returns together in the US.
3. If you go to www.centa.com and read the US/Canada Tax section (there
is a separate button at the top) you will find Judge Teskey's decision in
the Dennis Lee case. His list is not as important when you have gone to a
Tax Treaty Country but is extremely important if you are in a non-treaty
country like Saudi Arabia or Kuwait or Dubai.
4. When you are in the US, Article IV kicks in. the CCRA even has a
pamphlet called "Canadian Residents Going South" (their head of
that department admitted that they took it from my April 1994 newsletter)
which essentially says that if you are in the US for more than 183 days this
year, the US considers you a resident Alien for Tax Purposes. However, if
you left your spouse and three children behind, were visiting every week and
intended to come back to Canada, Article IV can also make you a resident of
CANADA and then you would have to pay tax to Canada on your US income from
March to December.
5. On the other hand, if your wife and children were only in Canada while
you were waiting for a "green card" because your wife would not
move until she could work as well, you are back to being a US resident and
you pay no tax to Canada.
I would remind you that the CEN-TA Group has seven full time people who
specialize in Cross-Border tax issues. See Contact
Us.
This is another reference to the credit history cleanup! Pay attention to
the TRANSUNION reference which you can find at: http://www.transunion.com/index.jsp.
As I write this, CNN is on in the background and they are talking about a
bulletin from www.monster.com where the
site is warning its users about phony "traps" on their own system.
And, I am a eBay user and someone has tried to access my eBay account
three times now.
david ingram
Hey David:
With regard to credit reports, I've been working on mine the last year..
and have managed to move my FICO score up by almost 100 points, purely by
getting all the inaccurate information cleaned up and restructuring some of
my credit facilities.. and by closing some of my high interest credit
accounts. Any kind of line of credit, including secured, show up on the
report, whereas mortgages (conv and high ratio) do not.. that's something to
keep in mind. I've had three bogus collections taken off my report simply
because I worked hard to get them off than the collection agencies worked to
keep them on. They weren't legitimate to begin with, but the onus is on the
individual to prove it, as opposed to the creditor to prove its validity
(don't even get me started on what a ridiculously unfair system it is to
individuals). One collection was for a speeding ticket I got in 1992 in BC
(I'm in Alberta!). An 11 year debt for something like that doesn't fly. It
pays to do the research on credit legislation.
Equifax offers two online reports - the basic one for $15, and the Score
Power for $21.95. The latter actually gives you your current FICO, which is
what mortgage brokers are most interested in. It also lists all credit
accounts and all the other information normally associated with a credit
report (collections, judgements, etc.)
The cheaper one is the same that you get in the mail, so it makes more
sense to pay the extra $6 and get your credit score (which you won't get
with the mailed version), or just submit a request for a mailed free one if
you don't want to pay for it.
Anyone looking to invest in real estate in any serious way HAS to take
control of their credit report, and really understand it. Equifax and Trans
Union have made it so much easier to dispute things online, there's no
reason not to any more.
Also, people should know and remember that Trans Union information is
often used as well. Many banks/brokers will pull BOTH credit reports and
make sure they're seeing all the history. So even if someone works to get
their Equifax cleaned up, if they're not doing the same thing on their
TransUnion then it's not going to have the same positive effect. TU now has
online report capability as well, which includes their score. OF course,
their score is not actually a FICO score so it's not taken as seriously by
the lenders it would seem. Their site is www.tuc.ca
Regards, Greg Habstritt
Tax Issues for
US Consultant working in Canada
David,
I found your web site though Ozzie Jurock's site. I've subscribed to your
newsletter and have found the questions and your detailed answers very
informative.
I have a couple of questions, but will start with this one.
As a US resident with an opportunity to consult in Canada, what sort of
tax issues do I need to deal with? Some of the work will actually be done in
Canada and some from down here in Phoenix. I will be invoicing for expenses
(travel, etc to and from Phoenix and Vancouver) as well as an hourly rate
for work performed. From reading through some of the info at the Canadian
Gov tax site, it looks like I may have to remit taxes monthly and possibly
GST. Any further info would be useful.
Sincerely,
CXXX XXXXXXX
==================================== ingram replies:
First I have to ask, do you have a working visa? If not, we can help.
Secondly, you will be taxable in Canada if you earn over $10,000. If you
earn less than $10,000 for services performed "IN" Canada, you
still have to file a tax return but it will be exempt from Federal Tax under
the Tax Treaty.
If you are self-employed and have NO FIXED base in Canada, you exempt all
earnings from Canadian tax but you have to file the return to claim the
exemption.
Canada, however is narrowing its definition of a fixed base and is now
trying to tax you if you do work at your client's premises.
All your Canadian Earnings are still taxable in the US and Arizona.
Go to www.centa.com and READ THE SECTION ON US/Canada taxation.
If you will be invoicing over $30,000 Canadian for work in Canada, you
need a GST Number and account.
If you need help, we do phone consultations for $125.00 US per half hour.
David Ingram
Tax Treaty with South Korea
David you sent an email on the Tax Treaty
with South Korea do we have the same with Japan .? Do you have to
advise CCRA when you leave Canada to work for a year or 2?
--------------------------- ingram replies:
Yes, we do have a Japan/Canada Income Tax
Treaty It has disappeared from the site but you can get one
mailed to you by going to: www.fin.gc.ca
You do not have to advise Canada that you are
leaving, However, you should get hold of form NR73 and read it
closely. It does not take much intelligence from reading the form to
see that the CCRA will likely make an effort to tax you if you:
maintain a Canadian driver's license keep your furniture in storage in
Canada leave your car at your mother's or brother's or best friend's place
maintain your Provincial medical plan etc., etc., You can find
out a lot more by going to www.centa.com
and clicking on the US/Canada taxation. Although a different
country, Article IV of the US-Canada Treaty is very similar to Article IV of
the Canada-Japan Treaty. Read enough of the article to get to
Judge Teskey's decision on Dennis Lee.
You can download the NR-73 form at: http://www.ccra-adrc.gc.ca/E/pbg/tf/nr73/README.html
Whatever you do, do NOT send it in to the CCRA. That just gives
rattlesnake hall another name on their list. I do personal
counseling on this matter of course.
David Ingram
If
you have a company pension plan it is absolutely save from creditors in
a bankruptcy.
However
RRSP accounts are fair game for the government and creditors. George
Hatton, a Saskatchewan CA who works with Cartier Partners out of the
CEN-TA Group office in West Vancouver, has forwarded this message about new
legislation in Saskatchewan which also has a pretty good homestead act.
Just
as Texas allowed Governor John Connelly to keep his $3,000,000 ranch while
creditors took his extra clothes including those he had worn in the
car with President J F Kennedy when he was shot, Saskatchewan will
now let you keep your RRSPs, RRIFs and DPSPs intact.
If you are in
financial trouble and have a couple of Hundred Thousand dollars in your
RRSP, it might be a good idea move to
Saskatchewan
for a year.
With his
majority, Premier Campbell could put this legislation through very easily.
I encourage you all to drop the Premier a line and make the suggestion. I
am forwarding this to him and some other media and political people who
were lucky enough or unlucky enough to be in my database.
George Hatton
can be reached at (604) 913-9137. Note that he is a CARTIER Partners
Representative and has some interesting ideas about RRSP accounts.
The deadline this year is March 3rd, 2003. You only have another four
days. My suggestion is to put your money into a a cash account today
or tomorrow and then sit down with a financial advisor like George Hatton
or Fred Snyder (CFUN radio every Saturday from 2 to 3 PM - 1410 on your AM
dial) in May when the heavy tax season is over and you can make an informed
decision without the pressure to make a choice now.
-----Original
Message-----
From: George Hatton [mailto:hatton@centa.com]
Sent: Thursday, February 27, 2003 10:34 AM
To: taxman@centa.com
Subject: Fw: Creditor Protection for RRSPs
Importance: High
Creditor
Protection for RRSPs
ICAS
leads the way for change
Effective
March 4, 2003, legislation will come into force to exempt
Saskatchewan RRSPs from seizure by creditors. The Registered Plan
(Retirement Income) Exemption Act will provide creditor protection for
three types of retirement funds: RRSPs, registered retirement income funds
(RRIFs) and deferred profit sharing plans (DPSPs).
In
1995, the Institute of
Chartered Accountants of Saskatchewan brought this issue to the attention
of the government. We have been working with the government since that time
to make creditor protection a reality. The seizure of RRSPs
stifled small business and entrepreneurship and the Institute urged the
government to take a leadership role on this issue.
Saskatchewan
is the first province to enact legislation to protect registered retirement
savings plans (RRSPs) and other registered funds from creditors in the
event of bankruptcy. This change will provide the same level of protection
from creditors for retirement savings in these registered plans as the
pension plans of wage earners receive.
Currently,
company pension plans are generally exempt from collection by creditors to
ensure people are not left destitute in retirement due to bankruptcy.
Self-employed people, however, do not usually have pension plans.
The
act is based on the national bill and other provinces are expected to adopt
similar legislation.
This
is great news and a huge step towards protecting our members and their
clients/employers from unfair liability issues!
david
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