How Canadians in the US are moving home while retaining their US jobs
Tax Changes? – Biden vs Trump
Watch Elena Hanson and Darren Coleman break down the potential tax outcomes of the upcoming U.S. election. Elena explains the differences between a Trump win (i.e. status quo complexity) vs. a Biden victory (i.e. whole-new-level complexity) and what each scenario means for different tax brackets and for multinationals.
International Taxation & the Upcoming US Presidential Elections
The US presidential elections are fast approaching and we thought it’d be a wise idea to have a look at the two main candidates’ tax proposals for the next administration.
During his first term, President Donald Trump pushed through the 2017 Tax Cuts & Job Act, which brought a wide series of changes to the country’s tax system, some of them affecting US citizens living abroad.
Democratic candidate Joe Biden, on the other hand, is looking to increase many taxes, including the US corporate tax and GILTI, which primarily affects un-repatriated low-tax earnings.
Most importantly, the US is in the middle of a battle with the OECD and Europe on the taxation of the digital economy and it will be interesting to analyze how a potential Biden presidency would alter the country’s policies vis-à-vis this issue.
With all of this in mind and more, on Monday, October 19 at 12 pm UK time, we held a webinar led by John Richardson on the presidential hopefuls’ main tax proposals as they affect both the domestic and international markets.
Some the questions tackled by our panelists included:
– Will a second Trump administration significantly alter the tax policies pursued during his first term?
– How will Biden’s tax proposals affect Accidental Americans and US citizen residing abroad?
– What can be expected from the US’s involvement in the ongoing negotiations over the taxation of the digital economy?
– And plenty more! Our panelists were:
– John Richardson, Lawyer, Citizenship Solutions, Canada
– Larry Stern, Partner, Aboulafia, Avital, Shrensky & Co., Israel
– Elena Hanson, Managing Director, Hanson Crossborder Tax Inc., Canada
– Stuart Gibson, Chief Editor, Global News and US, IBFD, USA
Cross-Border Tax Issues for Financial Advisors and Their Clients
Welcome to the Personal CFO’s Expert Speaker Series! Our Host Daniel Collison of Advice2Advisors welcomes guest speaker, Elena Hanson of Hanson Crossborder. In this segment, Elena Hanson reviews the Top 10 Cross-Border Tax Issues that affect Financial Advisors and their clients. Elena assists US, Canadian and international private clients, businesses and the institutions that service them on cross-border taxation issues, investment structuring, and trust and estate planning.
Canada and US Tax Residency and Permanent Establishment during Covid-19 Travel Restrictions
Canada and the U.S. introduced relief from tax residency and permanent establishment to foreign nationals and businesses who unintentionally remained in either country unable to leave during the Emergency Period resulting from Covid-19. While Canada allows foreign nationals and businesses with no PE in the ordinary course of business to completely void the days during March 16 and June 29, 2020, the US limits the exclusion to only 60 consecutive days selected between February 1 and April 1, inclusive. Watch for the US overriding treatment of income generated by foreign nationals during the Emergency Period. The income will retain US source character and thus maybe taxable at the federal and/or state levels, unless it is less than USD $3,000 or protected under a bi-lateral income tax treaty. To claim the treaty benefits, one still needs to file a US personal or corporate return.
Double Taxation Risk for Canadian Independent Contractors with California Clients
In this incredible age of technology, it becomes easier and easier to work for anyone from anywhere with each passing day. This has proven to be of particular benefit during the current pandemic. But outside of shelter-in-place or work-from-home orders, the whole world is potentially open for business for independent contractors who provide remote services.
The downside, of course, is that it is now also much easier to find yourself in unknown territory, and I’m not just talking about geography. You see, this type of remote transacting can bring about unpleasant tax exposures that will catch you off guard, particularly if you’re a Canadian independent contractor.
Let’s look at the Golden State. The State of California’s tax agency, the California Franchise Tax Board (FTB), has apparently earned a reputation for imposing high individual (as high as 13.3%) and business tax rates and is notorious for their aggressive enforcement and collection activities. Much like the Internal Revenue Service (IRS), the FTB casts its net far and wide, and they have a unique set of regulations in place to ensure they bring in the largest possible haul… more details check out the video