Personal tax issues often arise when something significant changes: a move, retirement, separation, property transaction, inheritance, or a new connection to another country. Barr LLP advises individuals, families and business owners on Canadian personal and cross-border tax planning, focusing on the Canadian tax consequences and coordinating with foreign advisors where a matter also requires advice in another jurisdiction.
Canadian tax residency:
- Tax residency is based on the applicable facts and law, not citizenship or day counts alone. Home availability, family ties, personal property, and business activities can all be relevant, and a tax treaty can determine which country treats you as resident.
- We advise Canadians leaving or returning to Canada, individuals arriving to work or invest, and families living across jurisdictions, including on departure tax, timing of asset dispositions, and foreign reporting.
- Corporate residency and cross-border business activity require separate analysis of management decisions, directors, permanent establishments and contractual activity.
Non-residents with Canadian assets or income:
- Non-residents may have Canadian tax obligations from employment, business operations, investments, real estate, trusts or estates, and payers may have withholding and reporting duties.
- We advise on withholding tax, taxable Canadian property, rental and disposition filings, treaty benefits, and compliance connected to a transaction.
- Cross-border ownership should be reviewed before purchasing Canadian property or shares, since how an investment is held affects annual tax, financing, succession and the tax consequences on sale.
Cross-border estates and trusts:
- An estate plan becomes more complex when a settlor, trustee, executor or beneficiary lives outside Canada, or the estate owns foreign property.
- We advise on the Canadian side of cross-border wills, trusts, inheritances and business succession, coordinating with foreign advisors as needed.
Other personal tax planning:
We also provide tax advice for retirement, pension arrangements, marriage or cohabitation, separation, and the purchase, sale or rental of real estate, coordinating across family-law, estate, corporate or real-estate issues when they carry material tax consequences.
Cross-border and personal tax planning is most effective before residency changes or transactions occur. We help clients understand their Canadian obligations, compare practical options, and complete the legal steps needed to implement the chosen plan.
