[wlui]

Hi there

Just wondering, if anyone of you have experience dealing with non resident contractors (eg. from US)?

The CRA states that the payer has to withhold 15% from the invoice for all amounts paid to non residents for services performed in Canada. The non-resident can be an individual, partnership or corporation (reference CRA guide RC4445).

Our firm deals with a lot of I.T professionals from different countries, who come over to Canada to work on a temporary contract basis (non-employment basis) and are either sole proprietors or incorporated.

We also deal with alot of large American companies (eg. Monster.com) who provide services to us, but we dont withhold any taxes from them. Is there a difference? Should we also be withholding taxes from them as well, or do they have a way to get around that mandatory 15% tax rule?

Hopefully, someone can shed some light on this.

Thank you

[JohnNP]

wlui, on May 25 2009, 02:42 PM, said:

We also deal with alot of large American companies (eg. Monster.com) who provide services to us, but we dont withhold any taxes from them.

i see that for over a year now various posters have repeatedly advised you that your corporation needs to engage a professional accountant, even when you asked this same question over a year ago :(

unfortunately CRA's auditors will not be interested in excuses of not feeling that your business/corporation needs a qualified accountant

CRA will simply assess you the arrear taxes, apply arrears interest, apply penalties, and possibly prosecute for wilfully failing to comply with the income tax act

the point once again:
every business needs to engage an accountant

[wlui]

JohnNP, on May 25 2009, 03:57 PM, said:

i see that for over a year now various posters have repeatedly advised you that your corporation needs to engage a professional accountant, even when you asked this same question over a year ago :(

unfortunately CRA's auditors will not be interested in excuses of not feeling that your business/corporation needs a qualified accountant

CRA will simply assess you the arrear taxes, apply arrears interest, apply penalties, and possibly prosecute for wilfully failing to comply with the income tax act

the point once again:
every business needs to engage an accountant

Thanks John

We do have an accountant, and like so many other posters, we actually use this forum as a supplement to the advice we get from our PDA and try to make the best decision out there for one reason or the other.

For example, the accountant may be busy to answer our questions on a timely basis. Also, like most professionals (except yourself), they are not perfect all the time, so the use of these forums are valuable, as some people may have had prior experience with these situations and be able to offer some guidance.

[JohnNP]

wlui, on May 25 2009, 05:24 PM, said:

Thanks John
We do have an accountant, and like so many other posters, we actually use this forum as a supplement to the advice we get from our PDA and try to make the best decision out there for one reason or the other.

For example, the accountant may be busy to answer our questions on a timely basis. Also, like most professionals (except yourself), they are not perfect all the time, so the use of these forums are valuable, as some people may have had prior experience with these situations and be able to offer some guidance.

if your accountant takes 13 months to answer a question, he/she will not be able to retain his/her qualification :(

if your accountant does not know, he/she would not be able to get or retain his/her qualification :(

if your accountant's knowledge is less accurate than internet chatrooms, he/she would not have been able to attain their qualification :(

qualified accountants would not shoot from the hip without examining the relevant specific facts and contracts :(

qualified accountants have had prior knowledge and experience with these situations and can offer some correct exact guidance to their clients having examined the clients file and data :)

finally, this is the profile users forum

[wlui]

Thank you for clarifying this is a users profile only forum. I think that there are alot of users who appreciate this forum for being able to get feedback on situational type questions like these.

Like I said before, this forum is only a supplement to what a PDA can provide. the same thing can be said with CRA guides and other research material. I am one of those people who like to get as much information as I can before making the correct decision, and not just having to agree with whatever your PDA says. There are situations where I have found that my accountant did not give the best answer and I was more satisfied with the answers given on the Quickbooks forum. guess i should make a complaint to his association's board.

Sometimes I find that the answers given on the forums are good points for discussion with my accountant.

i would expect that most people who reply to a post have had previous experience with the topic and can at least offer some opinion, instead of saying something redundant

JohnNP, on May 25 2009, 05:52 PM, said:

if your accountant takes 13 months to answer a question, he/she will not be able to retain his/her qualification :(

if your accountant does not know, he/she would not be able to get or retain his/her qualification :(

if your accountant's knowledge is less accurate than internet chatrooms, he/she would not have been able to attain their qualification :(

qualified accountants would not shoot from the hip without examining the relevant specific facts and contracts :(

qualified accountants have had prior knowledge and experience with these situations and can offer some correct exact guidance to their clients having examined the clients file and data :)

finally, this is the profile users forum

[JohnNP]

wlui, on May 26 2009, 12:45 AM, said:

There are situations where I have found that my accountant did not give the best answer and I was more satisfied with the answers given on the Quickbooks forum.

run, dont walk, away from that fraudster


also, purchase additional insurance

in addition, consider taking up employment and becoming an employee if you have dependents

[wlui]

JohnNP, on May 26 2009, 12:59 AM, said:

run, dont walk, away from that fraudster


also, purchase additional insurance

in addition, consider taking up employment and becoming an employee if you have dependents

yes, the world will come to an end if we all decide to get some useful information from an Intuit forum from time to time.

[kytung]

Some patient like walk into supermarket asking shopping assistant for medicine, do not like to listen to family doctor or medical specialist.

:lol: :lol: :lol: