Time is required to properly digest the complex US proposals (after all, the US Treasury itself has not yet released regulations), but it will be very important for our government to acknowledge the proposals’ impact on Canada and to indicate a path forward. Canada has many advantages. Perhaps we have relied too much, for too many years, on our competitive tax rate relative to the United States’. Now that we no longer enjoy the tax rate advantage, a new course needs to be plotted.
Below is linked a joint statement from the parties in one of the OT suits circulating in the healthcare staffing industry. It contains both side’s opinion as to what disclosures should be required for participants in the class action.
Note the issue raised by the defendant that the participants in class action suits COULD be subject to more tax than they would benefit should the plaintiffs prevail. Specifically, if the per diems are allowed to be included in the OT base, the per diems could be taxable should the IRS seek to pursue that determination.
Those “back taxes” would potentially be more than the additional amount of pay gained from the extra OT.
Here is a link to the webinar we did with Nomadicare discussing tax reform and the changes ahead for travelers in all industries
The PDF has an overview of the tax home rules for military spouse/travelers
See attached newsletter
As I mentioned before, the US tax cuts are going to create a wave of similar cuts around the globe. Here is one of the first in Nova Scotia.