Tax Basics

The various levels of Government that are tasked with providing services to its citizens fund those services through taxation. There are taxes with many names, some general taxes and some for special purpose taxes. Income Tax is for general tax purposes, where as gasoline tax is for road infrastructure purposes. Some revenue generated by the governments are called taxes while others are calle fees. The end result is the same, revenue generation for government to provide services.

In Canada, taxpayers are assessed for income tax purposes primarily based on residency rather than citizenship. The test for residency is factual with the outcome being specific to a particular taxpayer and it is possible for a person to be resident in more than one country for tax purposes. Dispositions of taxable Canadian property are one way to trigger exposure to Canadian income tax for non-residents.

By contrast, the United States taxes primarily based on citizenship although there are also rules for certain classes of residents. Care should be taken if you own US situs assets as this can also trigger US tax obligations in addtion to those in Canada for which the Canada-US tax treaty may or may not offer relief.

Other countries may tax based on residency, citizenship, asset location or some combination. To avoid unanticipated liability, it is important to obtain advice from practitioners experienced and licensed in each jurisdiction to which you may have exposure.





  • No comments found
LondonSkyline.jpg Western U.jpg Brock U.jpg Rogers Center 2.jpg vineyard2.jpg WindMill.jpg Ukranian Church.jpg CottageCountry2.jpg Rogers Center-football.jpg Niagara vineyard.jpg Burlington.jpg Queens U 2.jpg Via_1.jpg Goose1.jpg Guelph U.jpg Univerity college U of T, Toronto, ON.jpg toronto harbour.jpg lightning.jpg CFL TigerCat Cheerleaders, Hamilton, ON.jpg Yonge St.jpg Hockey Hall of Fame, Toronto, ON.jpg badlands.jpg York U.jpg ROM1.jpg Pearson.jpg UnionStation.jpg Sunset1.jpg Halton Country.jpg Hamilton.jpg parliament.jpg TorontoWaterFront.jpg escarpment.jpg Eaton's Center.jpg Queens U.jpg Rogers Center 1.jpg Croatian Franciscan Centre.jpg HartHouse, TorontoON.jpg CanadianRail.jpg Niagara falls.jpg Lake Muskoka.jpg TorontoBeach.jpg RoyalYork.jpg Moose.jpg cottagecountry.jpg Wolf Lake.jpg