Helping families through the maze Tax planning for cross-border families

Private Company Services
www.pwc.com/ca/private
Helping families
through the maze
Tax planning for
cross-border families
Tax planning
for cross-border families
Thanks to our long and friendly relationship with our
neighbour to the south, it’s tough to find a family without some
kind of US connection. Whether you’re a dual citizen or have
children living in the US, you’ll need to consider your exposure
to the US tax regime every time you undertake tax planning.
Failure to do so can result in significant unexpected tax and
penalty exposure.
Standard Canadian estate and tax planning may not work for Canadian families
with US family members. The US income, estate and gift tax regimes add
complexity to tax planning for these families. Increased vigilance by the US and
new and enhanced reporting rules are making it more difficult to comply with the
foreign reporting requirements on both sides of the border.
Our GTA Cross-border Private Client Team is here to help you understand and plan
your affairs so that you have a tax efficient plan here and in the US.
Shareholder planning
Estate and gift tax planning
You may be considering an estate freeze
of your private company. The standard
estate freeze may not be feasible if
you or your children are US citizens.
The US gift tax rules and foreign trust
rules may prevent you from doing
the traditional freeze and may create
significant additional tax exposures for
your family members. We can help you
identity your freeze options and find an
alternative strategy.
The US estate and gift tax rate is 40%.
Without careful planning, you could
expose your estate to a large estate tax
bill if you or your spouse is a US citizen.
We can help you design an estate
strategy that considers the US and
Canadian death tax regimes and avoids
exposing your estate to double taxation.
Personal tax returns
Personal tax reporting is increasingly
complex with the introduction of new
foreign reporting and the US Passive
Foreign Investment Company (PFIC)
requirements for non-US funds. We’re
uniquely positioned to help prepare
your Canadian and US personal returns
so that you comply with the myriad
of special reporting required for your
foreign investments.
US corporate tax planning
The US rules for foreign investment
holding companies can be extremely
costly. The Canadian strategy of
investing through a holding company
doesn’t work well if you’re a US citizen.
You may find that your Canadian
structure exposes you to the punitive
Controlled Foreign Corporation (CFC)
or PFIC rules. Let us help you structure
your investments and private company
holdings to minimize the impact of
those US regimes.
US immigration
US citizens are subject to US tax even
if they live outside of the US. The laws
governing US citizenship are complex
and have changed several times over
the years. For example, you may be
uncertain whether your Canadian
born child is a US citizen because you
are a US citizen. We can assist you in
understanding the US immigration
rules and help you obtain proper
documentation to support your US
citizenship or loss of US citizenship.
US voluntary disclosure
US citizens and Green Card holders
must file US tax returns even if they live
outside of the US. Many dual citizens
living in Canada are under the mistaken
assumption that they only have to file
in Canada. The IRS has introduced
several voluntary disclosure programs
over the years designed to encourage
US taxpayers to bring their US filings
up-to-date. We can assist you with
determining which voluntary disclosure
program is best suited to your situation
and prepare the necessary returns and
information forms.
Get to know our Cross-border Private Client Team!
View the areas of specialization for our GTA business
advisors under their contact details on the following page.
Our GTA Cross-border Private Client Team
We have trusted business advisors who are dedicated to helping
you. In addition to the local contacts listed below, you can ask us
a question anytime via email at
[email protected].
Beth Webel
Partner
Private Company Services
905 815 6400
Anne Kestanbaum
Partner
Human Resource Services
416 365 8169
Gregory Papinko
Partner
International Tax Services
416 869 8702
Chantal Farrell-Carter
Partner
Human Resource Services
416 815 5012
Mark Dey
Attorney-at-Law, Partner
PwC Immigration Law LLP*
416 814 5835
Ian Macdonald
Senior Manager
Human Resource Services
416 365 8876
Chris Chan
Senior Manager
Human Resource Services
416 815 5258
Tania Lopushanska
Manager
Human Resource Services
416 687 8139
Ife Ashabo
Attorney-at-Law, Manager
PwC Immigration Law LLP*
416 687 8641
Shannon Barron
Manager
Human Resource Services
905 815 6352
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
*PwC Immigration Law LLP refers to PricewaterhouseCoopers Immigration Law LLP, a law firm affiliated with PricewaterhouseCoopers LLP, an Ontario
limited liability partnership.
© 2014 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved.
PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity.
Please see www.pwc.com/structure for further details. 2230-32 0814