Tax Issues

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Using a trust? Watch out for attribution!

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Part II – Trust Attribution This blog has been written by Pritika Deepak /Associate at Fasken LLP This is Part II of a three-part blog series which provides an overview of the ‘attribution rules’ contained in the Income Tax Act (Canada)[1] (the “Act”). Part I, which summarizes the scope and application of the personal attribution rules, can be found here: https://allaboutestates.devrieslitigation.com/no-good-deed-goes-unpunished-by-the-cra/ Part II of the blog addresses the application of the attribution….

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Estate Planning, Tax Issues

U.S. Gift Tax – It May Apply To Canadians

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The U.S. gift tax is often overlooked by Canadians and their advisors. Most U.S. citizens living in Canada are aware of the U.S. estate tax and gift tax application. However, when it comes to Canadian residents who are not U.S. persons, only a minority are aware of the potential application of the U.S. gift tax. The author admits, the U.S. gift tax rarely applies to Canadian residents and this blog….

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Estate Planning, IRS, Tax Issues, United States, US Taxes

Taxable Preferred Shares – Some Potential Relief for Specified Amounts

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Andrew Coates, Associate, Gowling WLG (Canada) LLP The potential tax implications of estate trustees finding themselves holding taxable preferred shares (“TPS”) owned by a deceased and the “substantial interest” exception for Part VI.1 tax was explored previously in the March 2, 2021 post, but TPS is a complicated subject so we will discuss another of the exceptions in today’s post: the “specified amount” exception. As a refresher, TPS is defined….

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Succession Planning, Tax Issues, Uncategorized

What Makes an Indigenous Trust Unique?

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What makes an Indigenous trust unique from other inter vivos trusts? Two factors in particular are worth noting: (1) the nature and involvement of the beneficiaries of the trust, and (2) the manner in which Indigenous entities as settlors can utilize the income attribution rule under s 75(2) and their tax-exempt status under s 149(1)(c) of the Income Tax Act…..

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Canada Revenue Agency, Tax Issues, Trusts

Non-Resident and Rental Income – Not so Fast.

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When a non-resident of Canada generates rental income from a Canadian rental property, the tenant (or agent for the non-resident) must withhold 25% of the gross rental payment (unless a tax treaty reduces the withholding rate) and remit it to the Canada Revenue Agency by the prescribed date. It’s important to note that no deductions nor credits are permitted thus, the withholding is on the full rental payment. Rental Income….

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Estate Planning, Real Estate, Tax Issues, Trustee

Non-Resident Beneficiary and Part XIII Withholding Tax – Trustee Beware

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When trustees distribute income of a trust to a non-resident beneficiary, they must be mindful of potential Canadian tax implications. Part XIII tax is a tax withheld at source when income is paid to a non-resident. For Canadian trust and estate purposes, Part XIII requires a non-resident beneficiary to pay tax on certain amounts that a Canadian trust or estate pays or credits (or is deemed to pay or credit)….

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Tax Issues, Trustee, Trusts
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