Canada - Italy Tax Treaty

The latest treaty between Canada and Italy has been signed.  The treaty takes effect as of January 1 of 2011.  So be sure to check for any new areas that might be pertinent to your tax returns this year.

TIEA signed with St. Kitts and Nevis

Canada has signed a Tax Information Exchange Agreement  between Canada and St. Kitts and Nevis.  The agreement is in effect for tax matters starting November 21, 2011.  For non-criminal matters it will only affect taxable periods starting on or after that date.

Canada- Bahamas TIEA

Canada and the Bahamas have signed a Tax Information Exchange Agreement.  The agreement is applicable only to taxable periods beginning on or after November 16, 2011 (except where criminal code applies then it will apply for tax periods that begin on or after January 1, 2004).

New information for higher education outside Canada

CRA has posted three new information sheets regarding educational institutions outside Canada.

One for Educational Institutions outside of Canada, one for students and one about donations.

Canada-Barbados Tax Treaty

The Minister of Finance announced today that a protocol has been signed to amend the treaty with Barbados.  This is a good sign as it has been under negotiation for many years.

A couple of highlights are the clearer definition of resident and article XXX now protects Canada's tax base more clearly with the stipulation that "Nothing in this Agreement shall be construed as preventing Canada from imposing a tax on amounts included in the income of a resident of Canada with respect to a company, partnership, trust, or other entity, in which that resident has an interest".

International Agreement Signed

In the ongoing effort to stop international tax evasion, Canada has signed an updated international agreement to help combat tax evasion.

This updated agreement will make it a more efficient tool for combating tax evasion.

Canadians heading to the US

CRA has updated their guide:

Canadian Residents Going Down South

This guide is a quick reference for residents, but is only a quick check for you to see if you may need to look further.  Always contact a Canadian designated accountant experienced in cross-border issues before you file your Canadian (and US where necessary) tax return.

Deloitte's comments on draft foreign affiliate rules

Deloitte has commented on the draft foreign affiliate rules.