Today, there are thousands of Canadian nationals that are facing massive bills as a result of the tax reform legislation in the United States. These Canadians will be a priority on the agendas list when a committee of senators and members of parliament head to Washington in the coming week. Wayne Easter, who hails from the Liberal Party, said that the top priority for Canadian legislators would be international security issues and NAFTA. Easter serves as a co-chair for the Canada-US Inter-parliamentary Group. However, Mr Easter said that the committee members plan on raising the issue on the effects of the GOP tax bill across the international border. Easter said that he had the information that government officials together with the Canadian finance minister are tabling some discussions with US government officials.
Wayne Easter is also the chairperson of the House of Commons Finance Committee. He added that the Tax reform by the trump administration had become a big issue for Canadian businesses and that it needed to be addressed urgently. Wayne said that the tax reform would be one of the points of discussions when the meeting between them and the Americans takes place. The comments by Easter come at a critical time when the 1000-page tax reform legislation is affecting thousands of dual citizenship Canadian nationals who are also US citizens. The tax reform legislation that was signed into law by President Trump last December has a provision for a one-time, repatriation tax for Canadian-US citizens.
The measure was also meant to get big tech multinational companies such as Google and Apple to stop the parking of foreign subsidiaries in billions of dollars. Canadian citizens, who also own companies that operate in the United States, have also been hit hard by the US tax reform legislation. Many of these corporations are facing the prospect of being forced to pay taxes on all the retained earnings in their businesses since 1986 to the Internal Revenue Service (IRS). Moreover, those Canadians that have been using their companies to save for social security have also been walloped by the GOP tax legislation. While the US taxman will levy the funds sitting on these companies, it is the business owner that has to give a declaration regarding their tax returns in 2017.
Such entrepreneurs risk a double tax whammy if they risk taking money from their companies to pay the taxes. In such an event, such a businessperson will be forced to pay taxes to the Canadian government on the corporation money they pay the IRS as a tax.