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Hello this is AXXXXXXXXX from Calgary Alberta.
I would like to know how long I can stay in Phoenix Arizona during the year as a business investor in a Management Company.Also could you tell me what the tax implications would be, and what business tax returns to file for both countries.
P.S. I am a Canadian Citizen.
Sincerly Yours:axxxxxxxx
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David Ingram replies:
When you cross the border and tell the Homeland Securiy officer where you are going, that person is giving you your time limit. There is no law that says anything different.
If the person at the border says six months, you can stay for six months. However, you would have had to tell them that you are going down to supervise your business, what it was, where it was, etc.
In the case of a business investor without a specific working US visa such as a L1, H1, TN, E1, or E2 visa, you would be there under whatis called a B1 business visitor status.
A B1 status allows you to write checks, hire US citizens or US resident Aliens or foreigners with one of the above visas to work for your company.
A B1 does NOT allow you to answer the telephone in your business; it does NOT allow you to sweep the floor; It does NOT allow you to collect money; A B1 does not allow you to do repairs on any building used for commerical purposes such as a rental condominium or business building that your commericial business is using.
In fact, collect ten dollars and you are liable for arrest, handcuffs, a week in a US Immigration detention centre, a $5,000 US bond to get out of jail and your expedited removal from the US which includes the penalty of being banned from the US for five years.
One client had that happen for collecting $20.00 for the sale of a Maple Leaf Beanie Baby at Bellis Fair Mall in Bellingham and another one had the same thing happen for buying a ladder for his construction site and transporting the ladder in his truck from the store to the construction site in Portland. Strangely, the ladder would have been okay if he had bought it in Edmonton and drove it to Portland but was not okay when bought within the US.
.
Go to www.centa.com and read the ENTERING US section for rules about US working visas. Then click on Newsletters, go to 1995 and click on January top read some more detailed rules about an E2 visa process.
When you are physically present in the US, you have a very real US tax filing liability. If you are there more than 183 days, you will find yourself taxable on world income unless you find some relief under the auspices of Article IV of the US/Canada Tax Treaty.
You can find out more about the tax consequences by going to www.centa.com and reading the "whole section" at the "US/Canada Taxation" button.
IN ANY CASE, UNDER THE CIRCUMSTANCES DESCRIBED YOU WILL HAVE TO FILE A US RETURN AND AN ARIZONA RETURN ALTHOUGH THERE MAY NOT BE ANY TAX.
If there is tax, you will be able to claim it as a tax credit on your Canadaian return.
But you have to beware. It is too easy to break the US working laws and find your self out of th ecountry if someone complains. THE PERSON WHO COMPLAINS IS USUALLY A FIRED EMPLOYEE OR A COMPETITOR.
Hoping that this helps, I remain
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
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