Here is my situation. I am a Canadian citizen that is incorporated and has an agreement with a US company to provide "IT services" for a set monthly amount in US dollars. I do all the work remotely from Canada and travel to the US client site once per month for "meetings" under a B2 Visa. I filled out a w8ben-e form to this US client, but they write a check to my name (not the company) every month. I opened a bank account with PNC bank as a non-resident and filled out a W8 form with them as well. I deposit those checks under that account and pull the money out in cash (under 10K) and bring it back home to Canada everytime I travel. I do this for the first 4-6 checks. Around the 7th check, I start depositing those checks from my client into my Canadian business account and now I have my first revenue checks. There is no invoice numbers on the checks so CRA won't know if it's the 1st or 7th check.
I don't know to what extent the IRS and CRA along with border services share information, but what are the potential implications of doing this? I know it's not by the book, but maybe it won't turn into a problem as it's still under the radar and not for an extended amount of time?
Not exactly a loop hole, but an opportunity to save taxes?
Moderator: Mark T Serbinski CA CPA
-
- Posts: 1
- Joined: Mon Feb 22, 2016 6:55 pm