6 COMMENTS

  1. I was looking for information regarding this topic and finally, I found your article. Thanks for sharing all the valuable information. I live and work in Canada. But I do travel to the USA once or twice in a year. But it’s always a family treap as my younger brother lives there. So do I have to file an income tax return? I hope you will share your opinion. Thanks.

  2. Hi,
    I am planning to start an FBA e-commerce business with Amazon.com. If I register my company as a single member LLC(not corporated) in the US, while my company in Canada is sole proprietorship, will CRA treat the single member “LLC” as a corporate company? Will this leads to double taxation?

    Thanks.

  3. I’m an IT consultant that does around $300,000 of gross income for my US clients. I do most of the work from my home office in Vancouver but I do have to travel down to the US for 5 to 6 meetings a year.

    Would that make me liable for tax in the US? I’m worried know that I got the wrong advice from my current accountant. He said that as long as I didn’t do any significant work in the US that I wouldn’t have to file any US tax returns.

    If it turns out that I do have to file US tax returns am I going to get penalized?

    Thanks

    Josh

    • Hi

      The fact that you go down a few times a year to have meetings should not necessarily constitute you having a PE. That being said, your accountant was wrong in that you still should file US return to establish your treaty position. The penalties for filing will depend on how many years you’ve neglected to file.

      Please give me a call at 250-381-2400 and we can chat.

      Cheers

  4. Hi

    So does that mean that because I have a website that is hosted in the US and order from the US (Canada also) that I should be filing in the US. I don’t go down to the US for anything at all.

    • Hi Amy

      For purposes of actually being taxable in the US it will be less about whether your website is hosted in the US (this does become an issue sometimes) and more whether you actually have a PE in the US. That being said, if you have income from US sources you’ll need to file a treaty protected return at the very least.

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