TAX

TAX SERVICES

We prefer to take a proactive vs. reactive approach to tax services. By keeping current on new tax laws and legislation, we are in a position to identify key tax planning opportunities that optimize both your current and future tax liabilities. We provide our individual and business clients with the taxation expertise and knowledge that they deserve throughout the year. Tax services offered include, but are not limited to:

Personal Tax Services

  • Partnerships, Trusts and Estate Tax

  • Succession Planning and Intergenerational Transfers of Wealth

  • Financial, Retirement, and Personal Wealth Planning

  • Professionals

  • Stock Option Activity

Corporate Tax Services

  • Tax compliance

  • Business Incentives/ SR&ED Tax Credits

  • Owner/Manager Remuneration Planning

Indirect Tax

  • Sales and Use Taxes (GST/HST, QST, and other provincial sales taxes)

  • Payroll Taxes (CPP, EI, EHT, WSIB) 

Estate & Tax Trust Preparation

Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can optimize the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order.

Specialty Areas

  • Estate and Succession Planning

  • Purchase or Sale of a Business

  • Real Estate Transactions

  • Not-For-Profit Organizations

Services Provided

  • Strategic Planning

  • Tax Return Preparation

  • Representation to Tax Authorities

  • Audits & Appeals

  • Estate Administration

us tax services

US TAX SERVICES

Navigating the complexities of tax obligations in the United States can be a daunting task for Canadian companies and individuals. Understanding the nuances of federal and state taxation laws is not just advisable—it's imperative. At Lekadir LLP, we specialize in guiding Canadian businesses through the intricate landscape of US tax regulations. Whether your concern is the potential for federal income tax due to a permanent establishment in the US or navigating the intricacies of state income and sales taxes through Nexus, we're here to ensure that you're not just compliant but also maximizing your tax advantages. Welcome to our tax services section, where clarity meets strategy in the realm of US taxation for Canadian businesses. Let us help you understand and optimize your tax situation, making the complex world of cross-border taxation manageable and beneficial for your company.

OUR OFFERINGS

  • Corporate tax return preparation

  • Personal tax return preparation

  • Sales tax review and compliance

  • Strategic tax planning

  • Federal and state voluntary disclosures

  • Representation to tax authorities

  • Estate tax implications for Canadians with US real estate and securities, and for US citizens on worldwide assets.

NEXUS

Navigating the intricate concept of nexus is crucial for businesses operating across state lines. Nexus determines your company's tax responsibilities by evaluating whether your business has a substantial connection with a particular state. This evaluation is essential for both sales tax and income tax purposes and varies significantly from one state to another.

  • Employee Presence: The presence of employees in a state, including participation in trade shows, could establish a nexus.

    Physical Operations: Activities such as installations, inventory storage, or maintaining a physical location or property within the state are pivotal in nexus determination.

    Intangible Property: Ownership of intangible property, like trademarks, in a state can also contribute to establishing a nexus.

  • It's important to recognize that state rules around nexus can differ widely. In some instances, even temporary business engagements within a state may suffice to create a nexus, subjecting your business to that state's tax regulations.

  • The concept of affiliate nexus further complicates the landscape. Business affiliations, characterized by activities such as cross-ownership or shared intellectual property, can impact your nexus status. For example, a business in New York with as little as 5% ownership in another company that has nexus can, by virtue of this relationship, also be considered to have nexus.

  • For businesses that cross state boundaries, whether physically or through their affiliations, understanding and complying with each state's nexus rules is paramount. These rules determine your tax obligations and are essential for maintaining compliance and optimizing your tax strategy.

    At Lekadir LLP we specialize in demystifying the complexities of nexus for our clients. Our team is dedicated to ensuring that your business not only understands its nexus obligations but also adopts strategies that align with its broader operational goals. Whether you're grappling with physical presence, affiliate nexus, or state-specific regulations, we're here to guide you through each step, ensuring compliance and peace of mind.

    For a comprehensive evaluation of your business's nexus status and tailored advice on navigating these complexities, contact our team today.

Permanent Establishment (PE)

Lekadir LLP specializes in clarifying the implications of Permanent Establishment (PE) for Canadian companies operating in the U.S. PE encompasses various forms of business presence, such as offices, branches, factories, or any significant project lasting over 12 months. Additionally, services rendered in the U.S. by Canadian employees could establish a PE.

  • Canadian companies with a PE in the U.S. are subject to federal income taxation on earnings from that establishment. This includes adhering to specific filing requirements to manage tax liabilities efficiently.

  • Companies with a PE must file a U.S. federal income tax return. Operating as a U.S. branch allows for foreign tax credit eligibility on Canadian returns, potentially lowering the overall tax liability.

    Companies without a PE need to file an annual U.S. return to disclose their treaty-based position, avoiding a US$10,000 penalty. This is crucial for compliance and taking advantage of the U.S.-Canada tax treaty benefits.

  • At Lekadir LLP, we offer expert advice and strategic planning for Canadian businesses navigating U.S. tax obligations related to PE. Whether your operations constitute a PE or you're seeking guidance on compliance without a PE, our team is equipped to assist with your tax planning and filings.

    Explore strategic tax solutions with Lekadir LLP and ensure your business is positioned for success in the U.S. market. We're here to make complex tax regulations manageable and beneficial for your company.

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