P151 Canadian Residents Going Down South

On November 4, CRA released an update to the P151 publication; an excellent reference for Canadians who vacation or spend part of the year in the U.S. The guide includes information on completion of both Canadian and U.S. Tax returns. The Internal Revenue Service (IRS) has contributed to the information contained in the section on U.S. Tax Laws.

Readers will find information on health coverage, ownership of U.S. property and a discussion of residential ties. U.S. gambling and lottery winnings are also discussed. This is a must-read for anyone who plans to travel to our neighbor to the south this year!

ADDITIONAL EDUCATIONAL RESOURCES: EverGreen Explanatory Notes and Cross Border Taxationóa certificate course from the Knowledge Bureau. (link)

TAX EVASION: FAILURE TO ACCOUNT FOR MIXED USE EXPENSES

A real estate agent from Hammonds Plains, NS has been fined $25,126 for evading taxes by falsifying business expenses. This amount is more than 120% of the taxes owed. Personal expenses were altered to look like business expenses and she arranged for invoices for shared expenses to be reissued as her expenses alone. HST returns were also falsified.

In addition to court-imposed fines, persons convicted of tax evasion must file or re-file the tax returns in question and pay the taxes owing plus interest. Civil penalties may also be assessed by CRA. For more information see:

http://www.cra-arc.gc.ca/nwsrm/cnvctns/ns/ns101103-eng.html

ADDITIONAL EDUCATIONAL RESOURCE: Essential Tax Facts 2011