Budget 2015: International Tax - Tackling Administrative Challenges

As compared to past federal Budgets, Budget 2015 contained fewer (and arguably less controversial) international tax measures. Nevertheless, Budget 2015 did announce the Government's intention to address taxpayer concerns relating to (i) the withholding obligations borne by non-resident employers that have non-resident employees that work in Canada, and (ii) the reporting obligations of Canadian taxpayers that do not hold sizable amounts of foreign property. These new administrative proposals should be well received by both individuals and businesses.

Non-Resident Employer Withholding Requirements

Background

Generally, non-residents that earn employment income that is attributable to employment duties performed in Canada are subject to Canadian income tax. However, an employee that is resident in a country that has a tax treaty with Canada will often be exempt from Canadian income tax on income from employment duties performed in Canada if certain conditions are