Articles

U.S. Enacts New Exit Tax on Expatriates: Jun-19-2008
US Supreme Court: File Timely Refund Claims: May-01-2008 — This article, by Federal/International Tax and International/Cross-Border Practice Groups partner, Leslie R. Kellogg, was originally published in Canadian Tax Highlights, Volume 16, Number 5, May 2008.
Protocol Process and Basis Bump: Apr-28-2008 — This article, by Federal/International Tax Practice Group associate, Jessica S. Wiltse, was originally published in Canadian Tax Highlights, Volume 16, Number 4, April 2008.
US Regs on Artists' and Athletes' Compensation: Mar-20-2008
US Timely Filed Return Requirement Upheld: Mar-01-2008
US Regs on Artists' and Athletes' Compensation: Feb-01-2008
Joint Tenancies: US Tax Pitfalls: Dec-01-2007
IRS Scrutiny Intensifies: Oct-19-2007
New Protocol to the Canada-U.S. Income Tax Treaty: Sep-28-2007
Earnings and Profits Attributable to CFC Stock: Sep-07-2007
US Tax Advice Penalty Standard: Aug-02-2007
US Estate Tax on US Realty: Jul-18-2007
US Accounting for Tax Benefits: Jul-18-2007
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.
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.
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.
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.
Tax Alert: Katrina Emergency Tax Relief Act of 2005 (KETRA): Nov-04-2005 — As a result of this temporary provision, individual taxpayers can almost totally eliminate their federal taxable incomes for 2005.
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.
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.
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.
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.
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.
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.
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.
Subpart F: Discretionary Allocations: Oct-10-2004 — Recently proposed IRS regs tie the allocation of a CFC's earnings among multiple classes of stock for tax purposes to FMV differences between the classes if the actual allocation depends on an exercise of discretion by the board of directors.
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.
Multinational Task Force: Sep-17-2004 — Canada, the United States, the United Kingdom, and Australia have established a multinational task force to combat abusive tax transactions.
Retroactive QEF Elections: Jun-07-2004 — Recent IRS rulings provide further guidance on retroactive qualified electing fund (QEF) elections for stock in passive foreign investment companies (PFICs).
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.
Simplified RRSP Reporting: Apr-17-2004 — A new reporting regime for US resident and citizen RRSP and RRIF holders applicable for tax years beginning after 2002 greatly reduces the IRS-estimated time for compliance, compared to the prior regime.
US Reduced Dividend Rate: Apr-02-2004 — The US Jobs and Growth Tax Relief Reconciliation Act reduced the US federal income tax rate on qualified dividend income received by individuals to 15 percent, effective for tax years beginning after 2002 and ending for tax years beginning after 2008.
New York Nexus: Jan-16-2003 — Two recent advisory opinions (AOs) from New York State's Department of Taxation and finance highlight that even the most trivial physical presence can trigger New York sales tax obligations for Canadian companies.