Directors can be held liable for a corporation’s debt Under Canadian tax law, directors of a corporation can be held personally liable for certain components of a corporation’s tax debt which the corporation cannot pay, such as in the case of an insolvency. Generally speaking, corporations are required to collect...

When a non-resident of Canada earns income from a rental property or disposes of a real property in Canada, the tenant or purchaser may be required to withhold certain amount of tax which is usually 25% and remit that to the Canada Revenue Agency (CRA). This article will focus on...

A non-resident is generally taxable in Canada on the disposition of Canadian real estate. It is more difficult for the Canada Revenue Agency (CRA) to collect tax from a non-resident, so there are additional provisions to ensure the tax is pre-paid to protect against the risk of the vendor absconding...

What is the Voluntary Disclosure Program In recent years, the CRA has taken a rather aggressive approach in recovering uncollected taxes. The Offshore Tax Informant Program awards informants 5 to 15 percent of the federal tax collected if their leads result in more than $100,000 of additional federal tax. In...

What is the Voluntary Disclosure Program Taxpayers in Canada are supposed to file their tax returns accurately and timely, otherwise there may be interest and penalties or even criminal prosecutions depending on the situation. If a taxpayer fails to do so, he is not entirely out of luck. The Voluntary...

Section 216 election – guidance from Canadian tax lawyers on rental income and non-resident tax. When non-residents receive rental income from rental or immovable property in Canada, the tenant or agent must withhold non-resident tax which is 25% on the gross rental income paid to the non-resident. However, a non-resident...