Search found 20 matches

by WiseGuy
Tue Jun 13, 2006 12:15 pm
Forum: Canada / United States Tax & Accounting
Topic: Definition of agent for Providing Self Employed Services
Replies: 7
Views: 3251

Thanks again, Nelson. The part of the definition that's still bothering me is: He uses the services of an agent in the U.S. who has independent authority to enter into contracts on behalf of the individual. Since the agency requires me to sign a written document agreeing to any new contract, do they...
by WiseGuy
Tue Jun 13, 2006 10:15 am
Forum: Canada / United States Tax & Accounting
Topic: Definition of agent for Providing Self Employed Services
Replies: 7
Views: 3251

Thanks for the reply. Here is my situation: I accepted a contract on a 1099 basis through an employment agency working for a major telecom vendor. My job is to spend 4-6 weeks at various client sites across the U.S. conducting system conformance testing. I would never have a "fixed base" at any one ...
by WiseGuy
Mon Jun 12, 2006 3:21 pm
Forum: Canada / United States Tax & Accounting
Topic: Definition of agent for Providing Self Employed Services
Replies: 7
Views: 3251

Definition of agent for Providing Self Employed Services

In Serbinski's document "Taxation of Canadians Living and/or Working in the United States", page 8, (b) Canadian Residents Providing Self
Employed Personal Services in the U.S.
he states:

A Canadian resident providing personal services in the
U.S. as a self-employed individual falls under the
Canada U.S. Income Tax Convention (Treaty) -- Article
XIV - “Independent Personal Servicesâ€￾, which states:

“Income derived by an individual who is a resident of a
Contracting State in respect of independent personal
services may be taxed in that State. Such income may
also be taxed in the other Contracting State if the
individual has or had a fixed base regularly available to
him in that other State but only to the extent that the
income is attributable to the fixed base.â€￾

Therefore all self employment income is exempt from
U.S. taxation, irrespective of amount earned or time
spent in the United States, so long as it is paid to the self
employed individual personally as a self employed
individual, unless the individual has a fixed base in the
United States.

The Canadian individual could be deemed to have a permanent establishment in the U.S. if:
He has an office in the U.S.; or
He uses the services of an agent in the U.S. who has
independent authority to enter into contracts on behalf
of the individual.

In this instance, if one was working under a 1099, would their recruiting/employment agency be considered the "agent" thus denying them the benefits of this treaty?

Thanks.
by WiseGuy
Sun Dec 11, 2005 9:47 pm
Forum: Canada / United States Tax & Accounting
Topic: Tax Residence Certification and Backup Withholding
Replies: 1
Views: 1550

Tax Residence Certification and Backup Withholding

My U.S. based investment company, American Century (A.C.) that holds my 401K plan (now a IRA rollover) has sent me a Tax Residence Certification Form along with a W-9 and W-8BEN (Certification of Foreign Status of Beneficial Owner for United States Tax Withholding) to fill out for tax years 2001 to ...
by WiseGuy
Sat Jun 18, 2005 2:12 pm
Forum: Canada / United States Tax & Accounting
Topic: Dual Status and Last Year of Residency Strategy
Replies: 3
Views: 2282

Dual Status and Last Year of Residency Strategy

I'm catching up on some old tax returns and still need a bit of clarification. Here is my situation: am single, Canadian citizen, no dependents, and lived in the U.S. on TN/B2 for: <ul><li>320 days in 2000 </li><li>365 days in 2001 </li><li>49 days in 2002 (returned to Canada in Feb. 2002) </li><li>...