In this special AmCham Canada, Pacific Chapter update, seasoned practitioners will discuss tax and trade developments that are impacting American and Canadian businesses. The discussion will include changes to legal provisions and the relaxation of administrative practices. It is important to be aware of these developments and how they can impact on the “bottom line” of your business. While these developments are significant, many are not well-known.
On the Canadian tax side, for example, some tax return filing extensions have been granted. Late-filing penalties and interest may be waived if returns are late-filed, and payments are made before a specified date. Administrative positions have been adopted on matters including: residency for income tax, carrying on business, cross-border employment, waiver requests for non-residents for services provided in Canada, and dispositions of Canadian taxable property. Some positions may create a trap for the unwary. Directors may be tempted to defer tax payments in order to fund a corporation’s business operations. However, they may be personally liable for the payment of tax if they do so.
Similarly, Canadian companies with US operations will find that the IRS has also extended deadlines and payment dates. In addition, there are several tax measures related to COVID-19 that have been provided and we continue to get additional guidance, for example, the US Congress recently passed another bill related to the Paycheck Protection Program. Lastly, US states have also started to respond with guidance on how they intend to implement the federal tax stimulus measures.
On the trade side, importers may be permitted to defer certain duty payments. The risk of non-payment is shifted to service providers such as customs brokers if the clear goods using their own account security. A big development has been the publication of the US Mexico Canada Agreement Uniform Regulations. The USMCA (or “CUSMA” as it is referred to in Canada) is replacing the North American Free Trade Agreement on July 1, 2020. Key changes in the “New NAFTA” include rules of origin, proof of origin rules, and rules respecting e-commerce.
- 8:00 – 8:30 am | CA Update and Strategies
- 8:30 – 9:00 am | US Update and Strategies
- Tax Return Filing Extensions
- Payment deferrals and traps for the unwary
- Administrative positions adopted for matters relevant to cross-border businesses and dispositions of Canadian taxable property
- US extended deadlines and payment dates
- US federal tax stimulus measures
- Tax planning considerations for cross-border businesses in light of COVID-19 measures enacted by Canada and the U.S.
- Update on the new Canada-United States-Mexico Agreement/United States-Mexico-Canada Agreement (CUSMA/USMCA)
- Dan Kiselbach, Trade and Customs, Miller Thomson email@example.com
- Cathie Bayley, Canadian Income Tax, Miller Thomson firstname.lastname@example.org
- Gibson Turley, American Income Tax, Grant Thornton
- Mike deBruijn, Cross-Border Taxation & Transfer Pricing, KPMG
Virtual Event Details
- Date: Friday, June 19, 2020
- Time: 8:00am to 9:00am Pacific Time
- Cost: this virtual meeting (call) is free of charge, but registration is required in order to receive join details
- Registration: please register HERE.