Canadian tax rules surrounding trusts are in the midst of a shake-up. This blog summarizes new tax rules applying to testamentary trusts already in effect, and proposed new rules affecting estate donations and spousal and common-law partner trusts.Read More
Pearse Trust Blog
On 19 October 2015, Canada witnessed one of the largest reversals in political fortunes in recent electoral history when the Liberal Party, led by a youthful Justin Trudeau, bounced back from a dismal performance in the 2011 election to end the Prime Minister Stephen Harper's decade-long stint in power in emphatic fashion.Read More
On 16 September 2015, the Federal Court of Canada denied a request for an injunction to prevent the collection and disclosure of Foreign Account Tax Compliance Act (FATCA) information to the United States regarding American citizens living in Canada.
An updated Double Tax Agreement (DTA) between Canada and New Zealand came into force on 26 June 2015. The new agreement will generally lower withholding tax (WHT) on dividends, interest and royalties between the two countries and has been welcomed by investors in both countries. The changes will begin to take effect from 1 August 2015.
In what appears to be the first challenge to the US Foreign Account Tax Compliance Act (“FATCA”), lawyers for Gwen Deegan of Toronto and Virginia Hillis of Windsor, Ontario say that FATCA exposes their clients 'to a deprivation of their liberty and security of the persons', in violation of Canadian Constitutional rights. FATCA applies to all “US persons”, which in itself is an expansive test and captures many groups of people that may not even realise they are “US persons".
Fundy Settlement v Canada [2012 SCC 14] is a landmark case which used a test in order to put to rest any doubts which Trust Administrators might have in connection to the residence of a Trust for Tax purposes.