Indirect Tax
Indirect taxes impact, directly or indirectly, most transactions: sales, purchases, imports/exports and payroll.
If they are not managed properly, significant costs may be incurred which can have a significant impact on your bottom line.
INDIRECT TAXES
Tax Return Preparation
We can review your indirect tax reporting and compliance to ensure all procedures and refund opportunities have been addressed. We can assist in developing tax minimization strategies, while meeting your various filing obligations in jurisdictions throughout the U.S. and Canada.
Tax Audits, Appeals & Voluntary Disclosures
Audits & Appeals: An indirect tax audit should not be taken lightly. It can vary from a simple desk audit to a comprehensive review of all company transactions for the last four years (or longer).
When notified of an upcoming audit, contact us for assistance in managing the audit process and minimizing the risk of a simple audit becoming a time-consuming comprehensive multi-year audit.
We can also assist with preparing notices of objection when you do not agree with a CRA, Revenue Quebec, provincial sales tax, WSIB or EHT assessment. Note that the time limits for each may vary.
Voluntary Disclosure: The CRA’s voluntary disclosure program applies to all entities in Canada, including corporations. If there are errors on previous returns filed, and you have not yet been contacted by CRA with respect to any compliance issues, the filing of a voluntary disclosure may assist you in avoiding full penalties and interest. AM Associates can also assist you in submitting a “no-name” voluntary disclosure protecting your identity (and limiting penalties and interest) until the formal disclosure is submitted.
Indirect Tax Recovery
Unrecovered or overpaid indirect taxes may have a direct impact on your bottom line if not claimed in time. Most indirect tax regimes in Canada allow for refunds of recoverable and overpaid indirect taxes to be made for prior periods.
AM Associates can review your entire indirect tax accounting and reporting process. Not only are recovery opportunities investigated, potential compliance issues are identified and corrective actions recommended.
Canadian Indirect Taxes
Indirect taxes may have a substantial impact on your cost of doing business in Canada if they are not considered prior to the initial cross-border transaction. A company may be considered to be carrying on business in Canada for GST/HST purposes even though you may not have a permanent establishment in Canada. The circumstances of your company’s sales into Canada, made directly or through another party, should be reviewed in detail to ensure all indirect tax obligations have been identified and addressed.
U.S. CORPORATE TAXES
Tax Return Preparation
U.S. corporate tax often differs significantly from the corporate tax approach in other countries, particularly when a non-U.S. resident is involved in ownership of the corporation. It is essential that the appropriate planning takes place before the first step into the U.S. We work closely with U.S. tax attorneys and C.P.A.’s to ensure that our clients’ diverse needs are met by the appropriate structure. This is not basic tax advice – seek an expert to help you with this planning.
Tax Audits, Appeals & Voluntary Disclosures
Audits & Appeals: An IRS audit is a complicated process with a number of important deadlines and options. Don’t take on the IRS yourself – contact AM Associates to discuss your options and leave the stress to our experienced team of U.S. tax professionals. We work closely with U.S. tax attorneys to ensure that you are given the absolute best chance of audit success.
Voluntary Disclosures: The IRS offers a voluntary disclosure program for non-compliant filers. AM Associates works with U.S. tax attorneys to determine the voluntary disclosure approach that will result in the best likelihood of success. Don’t let non-compliance keep you awake at night – contact us today to learn how you can access this program.
Corporate Tax Planning
When a Canadian resident is considering doing business in the U.S., the pitfalls that can arise because of the differing taxation systems are numerous. The standard U.S. tax planning approach using LLC’s or S-Corporations can easily create double-taxation situations for Canadian residents. U.S. attorneys and accountants are not likely to be aware of the issues facing a Canadian investor into the U.S. Call AM Associates to map out your best approach to the U.S. market.
State Tax Planning & Compliance
With 50 U.S. states and many more cities and municipalities each featuring their own tax-filing requirements, it is near-impossible for an ordinary business person to be fully-compliant in a variety of states when required. We have the in-house expertise to help you determine whether you have nexus in a state, and to be compliant with each state and city’s tax-filing obligations.
Sending Employees into the U.S.
U.S. nexus can result in a variety of ways – whether it be by way of a new office, a salesperson signing contracts in the U.S., or a variety of employees working a number of days abroad. Before sending that first employee into the U.S., set up a meeting with AM Associates to ensure that you are aware of the rules before creating a significant tax situation.
GILTI Tax Compliance & Planning
The new U.S. Global Intangible Low-Taxed Income (“GILTI”) tax was part of the sweeping 2017 tax reform. These new rules were intended to deter multinationals from evading U.S. tax by using intangible property to move income to a lower or no tax country. Unfortunately, it is not only large multinational corporations that have to deal with this new tax. Any U.S. persons with ownership in foreign corporations have a potential GILTI tax liability. The rules relating to the specifics of this new tax including methods to eliminate or at least significantly reduce your GILTI tax exposure are complex. If you believe you may have a GILTI issue please contact us and we will help you implement the right tax strategy.