Steven Flynn, a partner with W.L. Dueck & Co. LLP, was interviewed by Business in Vancouver and discussed how potential US tax reforms may impact Canadian businesses.
Often Canadian businesses are surprised to learn about the reach of US state taxing jurisdictions to assert tax on out-of-state taxpayers. Since none of the 50 states were signatories to the Canada-US Income Tax Convention (the “Treaty”), they are not limited by the Treaty to taxing business activities in the US. It is not uncommon to find a Canadian business subject to a state’s taxing jurisdiction and completely exempt from US federal income taxation because of the Treaty. In contrast… Read More
In addition to filing a US federal income tax return, Canadian corporations engaged in a US trade or business or 25% Canadian-owned US corporations may have a requirement to file IRS Form 5472, Information return of a 25% Foreign-Owned US Corporation or a Foreign Corporation Engaged in a US Trade or Business. This form is required to be attached to the corporation’s US federal income tax return and is due on or before the due date of the income tax… Read More