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ARTICLE · 16 DECEMBER 2024

Year-end Best Practices: Cross-border Compensation For Dual Taxpayers (Video)

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While deferred share units (DSUs) are a common form of director compensation, differing tax rules in Canada and the United States could pose issues for dual-taxpaying directors.

CanadaTax
Jennifer Lennon
Jennifer Lennon
Ellie Kang
Ellie Kang
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While deferred share units (DSUs) are a common form of director compensation, differing tax rules in Canada and the United States could pose issues for dual-taxpaying directors. In this video, Ellie Kang and Jennifer Lennon offer insight into structuring DSUs to avoid unintended tax consequences on both sides of the border.

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Video transcript

Jennifer Lennon (00:05): So you've been told that one of your retiring board members is a U.S. taxpayer, as well as a Canadian taxpayer, and holds DSUs, so what do you need to do to ensure that the director's retirement doesn't trigger any unintended tax consequences? I'm Jennifer Lennon, and I'm joined today by my partner, Ellie Kang from New York to discuss some tips to ensure your directed compensation programs work for dual taxpayers.

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