Time is running out to make a timely filing on trusts affected by changes to Canadian law which significantly affect the way Canada taxes non-resident trusts.
“Since the changes cause the trust to be taxable, the onus of taking action rests on the trustee, so a proactive approach is warranted,” said Canadian tax expert Michael Cadesky.
STEP Guernsey delegates will hear from Mr Cadesky and colleague Grace Chow from Cadesky and Associates LLP in Toronto on 14 May at a Collas Crill sponsored lecture that will outline the new rules and which trusts may be affected.
Significant changes to the way Canada taxes non-resident trusts was passed into law last June, the result of a process which began in February 1999 to tackle perceived international tax abuses.
“The rules provide that trusts that are affected under the new rules, but which were not taxable under the old rules, have one year in which to make a timely filing (i.e., 26 June 2014),” said presenter Michael Cadesky.
“It is therefore very important to understand the new rules, to determine whether a trust might be affected. All immigrant trusts will need to be analysed, to determine how to deal with the change, and to adopt a planning strategy in advance of 2015.”
Mr Cadesky and Ms Chow will give an overview of the rules, and the planning alternatives, to enable delegates to understand the important aspects of the changes, identify trusts which may be affected, and consider the alternatives available.
Michael Cadesky is managing partner of Cadesky and Associates LLP in Toronto, a firm specializing in Canadian and international tax. He has practiced in taxation for over 30 years, was the founding chair of STEP Canada, and was also Chairman of STEP Worldwide.
Grace Chow is a founding partner of Cadesky and Associates LLP, and a noted author on Canadian tax subjects. She is currently Co-Chair of the STEP Worldwide Membership Committee, has served as a member of STEP Council, and is a past chair of both STEP Canada and STEP Toronto (Canada’s largest branch).
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