Articles

New US Passport Rules and Expatriates: Jan-18-2007 — Beginning January 23, 2007, a US citizen travelling by air between the United States and Canada, Mexico, Central America, South America, the Caribbean, or Bermuda must present a valid US passport or Air NEXUS card to enter the United States.
Barbados on US dividend list: Dec-28-2006 — The IRS recently announced that Barbados has been formally added to the list of foreign countries that qualify for the 15 percent preferential U.S. federal tax rate on dividends paid by a foreign corporation to U.S. non-corporate shareholders.
IRS targets employees of foreign embassies and international organizations: Dec-15-2006 — According to the IRS, a significant number of employees and former employees of foreign embassies, foreign consular offices, and international organizations in the United States fail to fulfill their U.S. income tax responsibilities.
Borders don't have to be barriers: Dec-04-2006 — Ten things you should know about how Hodgson Russ assists Canadian companies with their U.S. legal needs.
Multistate tax issues: Nov-30-2006 — For Canadian companies doing business in the United States, nexus is the most talked-about issue from a US state tax perspective. Many companies fail to realize that a treaty-based exemption generally won't provide protection from state taxes.
Temporary inversion regs: Aug-31-2006 — The new regs are Treasury's second round of guidance on the scope of the inversion rules and offer welcome clarification on what constitutes an "indirect" acquisition of substantially all of the assets of a domestic corporation or partnership.
Portfolio debt and partnerships: Jul-31-2006 — To help US companies raise capital, the United States provides tax incentives to encourage foreign investment in the US marketplace.
New FIRPTA guidance: Jun-30-2006 — New IRS regs revise rules for inbound and foreign-to-foreign asset reorganizations involving the transfer of US real property interests (USRPIs) pursuant to the Foreign Investment in Real Property Tax Act (FIRPTA).
PFIC lookthrough ruling: May-31-2006 — The IRS has interpreted favourably the lookthrough rule for 25 percent owned subsidiaries of foreign (non-US) corporations.
Reducing litigation risks in US business transactions: May-18-2006 — A failed deal is bad enough; having to contend with the expense and uncertainty of litigation can be a catastrophe. This is even more so for cross-border transactions, given the marked differences between the Canadian and U.S. legal systems.
Corporate inversions update: Apr-28-2006 — Three recent proposals clarify and modify the US corporate inversion tax rules enacted in 2004. The rules affect a wide range of cross-border transactions, including transfers of certain US-situs property to Canadian holdcos to avoid US estate tax.
Final US regs: Foreign mergers: Feb-28-2006 — The IRS has adopted final regs governing the type of transaction necessary to establish tax-free reorganizations under Code section 368. Tax-free statutory mergers or consolidations can now be effected under foreign law and can involve foreign entities.
Final and Temporary PFIC Regs: Feb-01-2006 — On December 8, 2005, the IRS issued final, temporary, and proposed regulations providing guidance for taxpayers that continue to be subject to the passive foreign investment company (PFIC) excess distribution regime of IRC § 1291.
Tax Alert: Corporate Inversions—Recent US Tax Developments: Jan-23-2006 — The U.S. enacted new “corporate inversion” tax rules in 2004 that affect a wide range of cross-border transactions. Two recent U.S. tax developments may clarify and modify certain aspects of these rules.
IRS: Abusive USRPI Transactions: Dec-01-2005 — In its continuing quest to stop tax abuse, the IRS recently outlined two types of US real property transactions involving foreign (non-US) persons that the IRS views as abusive transactions designed to circumvent the US withholding tax.
US-Mexico: Transparencies: Nov-01-2005 — The United States and Mexico have agreed on when treaty benefits extend to a fiscally transparent entity formed under the laws of either country.
Cross-Border Income Securities: Oct-01-2005 — Income trusts have become popular with US companies that make Canadian public offerings. New variations may be more attractive to Canadian investors.
Professional Compensation Is a Gamble in Chapter 11: Aug-11-2005 — This article by Hodgson Russ partner Garry M. Graber was originally published in The Journal of Corporate Renewal, April 2005. Reprinted with permission.
Cross-Border Estate Planning Basics: Jul-25-2005 — Canadian residents who acquire property located or deemed to be located in the United States are subject to potential U.S. estate tax on the value of that property owned at death.
Planning for Beneficiaries With Special Needs: Jul-25-2005 — Planning for beneficiaries with special needs requires special attention and special drafting of estate planning documents.
IRS issues new regulations for partnership withholdings: Jul-14-2005 — This article by Hodgson Russ associate Marla Waiss was originally published in The Buffalo Law Journal, vol. 77, no. 56, July 14, 2005. Reprinted with permission.
Some thoughts about costs in international arbitration: Jul-08-2005 — Reprinted with permission from International Arbitration News, Summer 2003
US Partnership Withholding Regs: Jul-01-2005 — The IRS issued final and temporary regs regarding a US partnership’s obligation to withhold tax under Code section 1446 on effectively connected income allocable to a foreign partner.
Second Circuit Update: Jun-06-2005 — A brief review of recent notable decisions from the Second Circuit, including cases involving arbitration, electronic privacy, securities litigation, and trademark and copyright infringement.
Plot to Defraud the CRA: US Crime: Jun-01-2005 — The US Supreme Court upheld the conviction of participants in a scheme to defraud Canada of alcohol import taxes by smuggling liquor from the US into Canada, despite the common-law revenue rule that bars enforcement in US courts of foreign revenue laws.
Section 1441 Voluntary Compliance: Apr-01-2005 — Revenue procedure 2004-59 sets out procedures for a temporary voluntary compliance program for tax, withholding, and reporting obligations applicable to withholding agents in connection with payments to foreign persons.
Proposed rules permit tax-free cross-border mergers: Mar-24-2005 — The IRS recently issued proposed regulations allowing certain mergers and consolidations effective under foreign law to qualify as tax-free A reorganizations.
Corporate Fiduciaries, Advisors and Other "Co-Trustees" - Perhaps Your Trust Isn't Exempt From New York State Income Tax: Mar-15-2005 — New York resident trusts that were once thought to be exempt from New York income tax may now be taxable.
US Expatriates: Mar-02-2005 — The Jobs Creation Act of 2004, signed into law on October 22, 2004, substantially altered the expatriation tax rules (Code section 877) applicable to US citizens and long-term permanent residents who commit an expatriating act after June 3, 2004.
“A” Reorgs Embrace Forco: Mar-01-2005 — On January 5, 2005, the IRS issued proposed regulations that allow certain mergers and consolidations effected pursuant to foreign law to qualify as tax-free “A” reorganizations, if they meet certain criteria in the US law and qualify as reorganizations.
IRS on Qualified Dividends: Dec-01-2004 — In October 2004, the IRS provided guidance on the extent to which amounts received on or included in income by US individual shareholders of foreign corporations may be treated as qualified dividend income.
Business Litigation - A Cross-Border Perspective: Nov-24-2004 — Improved communications and ease of travel have made distant markets more accessible and serviceable, and the U.S. is often the first market outside Canada sought to be serviced by Canadian business.
Data Sharing: IRS and CIS: Nov-11-2004 — The US Government Accounting Office determined the extent to which the IRS and the CIS (within the Department of Homeland Security) share and verify data and the benefits and challenges, if any, of increased sharing.
Cross-Border Personal Services Income: Nov-05-2004 — Proposed new IRS rules determine the source of income from personal services performed partly within the United States, applicable for tax years beginning on or after the date on which the regs are finalized.
Canco's US Compliance Issues: Oct-09-2004 — Recently implemented IRS rules have compliance ramifications for Canadian companies that do business in the United States.
Filing Considerations for Provisional Patent Applications: Sep-12-2004 — The filing of a U.S. provisional patent application preserves foreign filing rights in all Paris Convention countries and disclosures made after the filing will not adversely affect the ability to file foreign patent applications in those countries.
IP Developments September 2004: Sep-10-2004 — Premier Issue! Topics include The Madrid Protocol, copyright treatment of work made for hire, provisional patent applications, nanotechnology, and reach-through claims.
US Tax Opinions and Practices: May-14-2004 — The US Treasury recently proposed changes to the regulations that govern practice before the IRS. The proposals hope to restore, promote, and maintain the public's confidence in the honesty and integrity of professionals who provide tax advice.
IRS: Treaty Filings, ITINs: May-02-2004 — IRS Notice 2004-1 recently announced that eligibility for individual taxpayer identification numbers (ITINs) has been tightened to help eliminate their non-tax use.
UN Sale of Goods Convention: Dec-16-2003 — By Benjamin M. Zuffanieri, Jr. and Joshua I. Feinstein At least in North America, the CISG may be a trap for the unwary - a set of only partially tested and poorly understood rules which courts neither uniformly nor predictably apply.