Tag Archives: tax

Recent News

The Taxman Cometh: Tax Considerations for Canadian musicians

Tax time is almost upon us and the annual tax filing of April 30 is fast approaching. Canadian musicians have certain advantages in terms of dealing with the Canadian tax system, and this article will outline how you can reduce your tax liability. Knowing what expenses you can deduct from your income and keeping track of your annual income/expenses—along with a file of corroborating evidence (contracts, receipts, cancelled cheques, credit card statements, etc.)—will ensure that you can take advantage of favourable tax regulations for Canadian performing artists.

Most Canadian musicians are considered by Revenue Canada to be self-employed entrepreneurs since they independently contract their services and are classified as operating a music “business” as a sole proprietorship for tax purposes. This provides an opportunity for claiming a number of deductions against earned income and reducing the tax liability to Revenue Canada.

Your income as a self-employed musician is claimed on your personal income tax T1 return, detailed on an attached Statement of Business or Professional Activities (Form T2125). This form is used to detail your income and the many deductions you can claim to reduce the income and thus pay less tax. Revenue Canada offers helpful information in its Guide to Self-Employed Business Income.

A financial spreadsheet detailing your income and expenses should be maintained to summarize your income/expense annually and provide evidence, if ever required, to Revenue Canada to support your tax filing.

Note that if you are not a sole proprietor but have formed a partnership (as some musical groups do), then each partner will file separately according to their share of the partnership income and expenses. If a musical group is incorporated, then different tax regulations apply to the business and it is recommended that you consult a tax professional to ensure compliance with Revenue Canada business filings.

In terms of income, Canadians are required to claim their worldwide income from all sources on their annual income tax return. If your income was in other than Canadian currency, you should convert the amounts to Canadian on the date of receipt using the Bank of Canada Currency Converter (available online at www.bankofcanada.ca/rates/exchange/currency-converter).

You can reduce your tax bill considerably by claiming any business expenses related to your earning money as a musician. Note that you must keep invoices, receipts with the name of the vendor and the date, or even a voucher detailing the expense. Proof of expenditures, including cancelled cheques or credit card statements, must be kept, along with the receipts, etc., for seven years. In terms of deductions, the following could be claimed:

Fees:

• Union dues (CFM local).

• Professional association memberships.

• Legal and accounting or other professional fees.

• Interest on loans taken out for musical purposes.

• Agents’ commissions.

Office Expenses:

• Home expenses (rent, mortgage, mortgage interest, property taxes, electricity, heat, water, home insurance, some repairs) based on the amount of space used for your music “business” (divide the total area of your home by the total area of the workspace).

• Rehearsal/rental space.

• Postage and courier fees.

• Stationery supplies used for earning income.

• Industry-related subscriptions, magazines.

• DVDs, CDs or internet recordings purchased for a specific educational purpose

• Telephone and internet costs.

Travel Expenses:

• Car expenses (check the Automobile Allowance Rates at Revenue Canada).

• Hotels.

• Flights.

• Entertainment expenses (50%).

• Meals while on the road.

• Childcare expenses related to absences to earn income.

Instrument Expenses:

• Instrument insurance.

• Replacement strings or instrument repairs.

Performance Expenses:

• Portion of haircuts or styling, makeup.

• Wardrobe used in performance.

• Cleaning/repairing stage clothing.

• PA or gear rentals.

• Any fees paid to other players or accompanists.

• Headshots or promotional photos.

• Advertising.

•  Cost of recording demos.

Note that there may be some limitations or particular rules relating to these deductions.

In addition to these deductions, there are two other areas regarding tax to consider: GST and Capital Cost Allowance.

Registering for GST/HST is not required unless your income level is $30,000 annually, however, if you voluntarily register for the GST/HST you will collect GST/HST on all Canadian gigs but will be able to claim the GST/HST paid on any items relating to your musical activity to reduce the amount of GST/HST due to Revenue Canada. Depending on the volume of GST/HST in your business, you have the option of filing annually, quarterly, or monthly. You can get more information from Revenue Canada on GST/HST Registration.

Capital cost allowance applies to any major music or office equipment or instrument purchases, as well as music reference material (scores, arrangements) and stage wardrobe. These items are depreciated over a number of years, i.e., their cost is deducted not all at once but by a certain portion each year. The amount you can claim varies according to the class of the item. For example, Class 8 applies to equipment purchased for more than $500 and 20% of these purchases can be claimed each year; Class 10 applies to computer equipment and 30% of these purchases can be claimed each year.

It is sometimes difficult to do the required paperwork to record your musical activities in a business-like way. However, setting up a simple way to keep track of your income and expenditures will allow you to reap the many benefits available to Canadian musicians under the Canadian tax system.

∂

Robert Baird is president of BAM! Baird Artists Management Consulting in Toronto, and an expert in international touring including visas, withholding, and taxation. He is an AFM booking agent and an acceptance agent for the IRS. His guest column is provided for informational purposes only, not as a substitute for advice from your personal tax professional.

Le percepteur d’impôt s’annonce : considérations fiscales pour les musiciens canadiens

par Robert Baird, conseiller en arts de la scène

C’est presque la saison des impôts, et la date butoir du 30 avril pour la transmission de nos déclarations de revenus arrive à grands pas. Le système fiscal du Canada offre certains avantages aux musiciens canadiens, et dans cette chronique, je tenterai de vous aider à en tirer parti. Savoir quelles dépenses vous pouvez déduire de votre revenu et faire un suivi annuel de vos revenus et dépenses— tout en conservant vos pièces justificatives telles que contrats, reçus, chèques annulés, relevés de carte de crédit, etc. — vous garantira de bien profiter des règles fiscales qui s’appliquent aux artistes de la scène canadiens.

Revenu Canada considère la plupart des musiciens canadiens comme des travailleurs autonomes puisqu’ils offrent leurs services de façon indépendante et sont classés comme entrepreneurs exploitant une entreprise musicale à titre de propriétaires uniques. C’est pourquoi ils peuvent déduire un certain nombre de dépenses de leurs revenus et ainsi réduire leur facture fiscale.

Vous devez déclarer votre revenu de musicien travailleur autonome de façon précise sur un formulaire T2125 en annexe de votre déclaration personnelle de revenus T1. Ce formulaire permet d’indiquer vos revenus en détail ainsi que les nombreuses déductions auxquelles vous avez droit pour réduire votre revenu total et donc votre impôt. Revenu Canada offre de l’information utile à cet égard dans son guide Revenus d’un travail indépendant d’entreprise.

Veillez à maintenir une feuille de calcul financière dans laquelle vous inscrirez vos revenus et dépenses annuelles au cas où vous feriez l’objet d’une vérification de Revenu Canada. 

Si vous n’êtes pas propriétaire unique de votre entreprise, mais plutôt établi en partenariat comme certains groupes musicaux, chaque partenaire devra faire sa propre déclaration selon la part des revenus et dépenses qui lui revient. Si le groupe est constitué en société, les règles qui s’appliquent ne sont pas les mêmes, et je vous conseille de consulter un professionnel en fiscalité afin de garantir que vous répondez bien aux exigences de Revenu Canada.

Dans leur déclaration annuelle, les Canadiens sont tenus de rendre compte de tous leurs revenus de toute source, d’où qu’ils viennent dans le monde. Si vous avez gagné votre revenu dans une devise autre que le dollar canadien, convertissez les montants en devise canadienne selon la date de leur réception en utilisant le convertisseur de devises de la Banque du Canada, accessible en ligne à www.banqueducanada.ca/taux/taux-de-change/convertisseur-de-devises.

Vous pouvez réduire votre facture fiscale de façon considérable en déduisant toute dépense professionnelle encourue pour gagner un revenu comme musicien. Notez que vous devez conserver vos factures, vos reçus où figurent le nom du vendeur et la date de l’achat ou même les récépissés avec le détail de vos dépenses. Toutes les pièces justificatives, incluant les chèques annulés ou les relevés de carte de crédit, ainsi que les reçus et autres documents, doivent être conservées pendant sept ans. Voici les déductions que vous pouvez réclamer :

Frais :

• cotisations syndicales (section locale de la FCM )

• adhésions à des associations professionnelles

• honoraires juridiques, de comptabilité ou d’autres types de professionnels

• intérêts sur prêts contractés pour gagner un revenu comme musicien

• commissions d’agent

Dépenses de bureau :

• dépenses liées au domicile (loyer, hypothèque, intérêts sur hypothèque, taxes foncières, électricité, chauffage, eau, assurance résidentielle ainsi que certaines réparations) en proportion de l’espace que vous utilisez pour votre
« entreprise » musicale (diviser la surface totale de votre résidence par la surface totale de votre espace de travail)

• location de lieux de répétition

• frais de poste et de courrier

• papeterie utilisée pour gagner un revenu

• abonnements liés à l’industrie, magazines

• DVD, CD ou enregistrements sur Internet achetés dans un objectif éducatif particulier

• dépenses de téléphone et d’Internet

Frais de déplacement :

• dépenses d’automobile (vérifiez les taux d’allocation pour frais d’automobile de Revenu Canada)

• hôtels

• vols

• frais de réception (50 %)

• repas pendant les déplacements

• frais de garde d’enfants se rapportant aux absences permettant de gagner un revenu

Dépenses d’instruments :

• assurance instruments

• cordes de remplacement et réparations d’instruments

Dépenses de prestations :

• une partie des frais de coupe de cheveux, de mise en plis, de maquillage

• vêtements pour prestations

• nettoyage ou réparation de vêtements pour la scène

• sonorisation ou location de matérie

• tout cachet versé à d’autres musiciens ou accompagnateurs

• portraits ou photos de promotion

• publicité

• coûts liés à l’enregistrement de « démos »

Notez que ces déductions peuvent faire l’objet de certaines limitations ou de règles particulières.

En plus de ces déductions, il y a deux autres éléments à considérer : la TPS et la déduction pour amortissement.

Vous n’avez  pas à vous inscrire à la TPS/TVH si vous gagnez moins de 30 000 $ annuellement. Toutefois, si vous vous y inscrivez volontairement, vous recevrez de la TPS/TVH sur tous vos engagements canadiens, et vous pourrez la déduire sur vos achats liés à votre activité musicale, réduisant ainsi la part de taxes à verser à Revenu Canada. Tout dépendant du montant de TPS/TVH que collecte votre entreprise, vous aurez le choix de faire vos déclarations une fois par année, aux trois mois ou mensuellement. Pour de plus amples renseignements relativement au processus d’inscription à la TPS/TVH, contactez directement Revenu Canada.

La déduction pour amortissement s’applique à toute acquisition importante de matériel de bureau, de musique ou d’instruments ainsi que de matériel de référence (partitions, arrangements) ou de vêtements de scène. Ces articles sont amortis sur un certain nombre d’années, c’est-à-dire qu’une certaine proportion de leur coût est déduite chaque année. Le montant des amortissements varie selon la catégorie de l’article ; par exemple, la catégorie 8 inclut les achats de matériel dépassant 500 $ et permet d’en déduire 20 % chaque année; la catégorie 10 s’applique aux ordinateurs et autre matériel informatique et permet d’en déduire 30 % par année.

Il est parfois difficile de faire toute la paperasse nécessaire pour rendre compte de vos activités musicales de façon rigoureuse. Mais en établissant un moyen simple de faire le suivi de vos revenus et dépenses, vous pourrez profiter des nombreux avantages qu’offre le système fiscal du Canada aux musiciens canadiens.

Pour obtenir des renseignements en ligne auprès de Revenu Canada, rendez-vous à l’adresse suivante : www.canada.ca/fr/agence-revenu.html.

∂

Robert Baird, président de BAM! Baird Artists Management Consulting, à Toronto, est un expert reconnu en matière de tournées internationales, de visas, de retenues à la source et de taxation. Sa chronique d’invité vous est offerte à des fins d’information seulement et ne peut en aucun cas remplacer les indications de votre propre conseiller en matière de fiscalité.

Recent News

Tax Tips for American Musicians

It is going to be quite a tax season this year. Many tax preparers (including me) since last March have gone virtual for their own safety as well as for the safety of their clients. With the technology
we have available to us now, documents can be securely uploaded to cloud portals, meetings can be done via Zoom, signature docs can be e-signed, and some preparers (again, including me) have phone apps their clients can use for all those tasks, to help make tax season run smoothly and efficiently.

As far as tax laws that affect musicians specifically, everything is pretty much the same as last year. However, there are a few new things to be aware of this year, as well as some COVID-related provisions that may be helpful to know about.

Since most people agree that reading about taxes is quite boring (well, this time that doesn’t include me), I will present this with sub-headings so you can find what applies to you and skip over what might not.

So, what is new, and what should you be aware of?

The New 1099-NEC

Have you noticed that the 1099s you received this year look different? The old 1099-MISC was replaced by the new 1099-NEC. This is now the required form to show payments to all independent contractors for services rendered. If you are sending 1099s to your musicians, use that form.

The change came about because too many payers were listing their fees to musicians in Box 3, “Other Income,” when they should have been in Box 7 “Non-Employee Compensation.” The new 1099-NEC has only one box, “Non-Employee Compensation,” which is where fees for services rendered should be reported by the payer to both the payee and the IRS.

Reporting Unemployment Compensation

Unfortunately—and I find this puzzling—unemployment compensation is taxable by the IRS, and of the 41 states that have an income tax, five of those states (California, New Jersey, Oregon, Pennsylvania, and Virginia) are the only ones that do not tax unemployment at the state level. Unemployment is reported to you on form 1099-G. Note that you will not get your 1099-G form in the mail. You will need to log into your online unemployment account and download your 1099-G form to prepare your taxes.

Stimulus Payments

Stimulus payments are not taxable, but you will need to know the exact amount that you received in order to reconcile it on your 2020 tax return. There is a new form on your 2020 taxes this year where you will reconcile your payment and be able to calculate whether you are due an extra or additional payment, or actually request a payment if you were eligible but never received one. Make it easy for your tax person: If you’re not sure how much you received, check your bank statement so an error is not made on your tax return.

PPP Forgiveable Loans for Self-Employed Musicians and Music Businesses

The second round of PPP loans is currently available to any self-employed individual or business having experienced at least a 25% drop in income from last year. These loans are available until March 31, but funds will probably run out way before then, so apply now at your bank if you qualify. There is a ton of info out there on how to apply and who qualifies.

PPP loans are not taxable even when forgiven, and you can deduct any expenses that you paid using forgiven PPP loan proceeds. Originally, the IRS’s position was that any expenses you paid using PPP proceeds were not deductible, but due to massive opposition they reversed course.

Charitable Contributions

Up to $300 of donations to a charitable organization can be deducted this year without itemizing, even if you take the standard deduction. This helps those who didn’t get any benefit last year from their donations because of the new tax law. Now, this is not automatic; you still have to have proof that you made the donations, same as always.

It is commonly misunderstood as to what donations are actually deductible. To be deductible, donations must be made to a registered tax exempt organization known as a 501(c)(3). Money or personal property donated to a needy individual is not tax deductible, and it is important to note that donations made to standard GoFundMecampaigns are also not deductible if the funds are given to an individual rather than to a registered charity. Last year was a big year for political donations, but, unfortunately, political donations are not tax deductible. If you are unsure as to whether an organization is a registered tax-exempt organization, you can use the IRS online tool to find out.

Interest on Your 2019 Tax Refund Is Taxable

Many taxpayers who received 2019 refunds in 2020 were paid interest by the IRS. Because the IRS was so backed up last year, many tax refunds went out late. As a result, the IRS was required to pay interest on these late refunds. Additionally, because the 2019 filing deadline was moved to July 15, many taxpayers who filed between April 15 and July 15 were paid interest on their refunds because those refunds were considered “issued late” by the IRS (after April 15). You will receive a form 1099-INT from the IRS which reports the taxable interest you must report as income.

2021 Filing Deadline is April 15

At the time of writing this article, the IRS has no intention of moving the filing due date this year, so assume it is still April 15 until further notice from them.

IRS Backlogs

In addition to being an extremely rough year for all of us, 2020 was a particularly rough year for the IRS. In addition to increased workload, staff reductions, having to get stimulus checks out, changes in tax code due to COVID-related provisions, etc., etc., the IRS had gotten way behind in their work. Many IRS offices rented trucks, which they parked outside their buildings, to store unopened mail until they could get around to opening it up. Their phone lines were nearly impossible to get through on, and anything having to do with mail was way behind, whether you were on the sending or receiving end. Bills were mistakenly mailed to people who had already paid their taxes months before, and if you were responding to an IRS notice, issues took a very long time to resolve.

Know that the IRS is still not back to normal. Phone lines are still tied up, correspondence issues are still taking a long time to resolve, and I’m sure there will be late refunds and IRS mistakes again this year. Of course, audits are still happening, but are being conducted by correspondence rather than in person.

The IRS is still in a backlog of unopened mail and asks that you expect any mail you send them to be opened within 60 days. My advice is to pay all IRS bills online at www.irs.gov/payments. If you’ve sent them a check a while back and it hasn’t cleared, they say to not cancel it; they will get to it eventually. They will apply your payment retroactively as of the postmarked date, not the date they finally got around to processing it.

And, if you plan on mailing your tax return in this year, I completely discourage it. Once they finally open it, they have to then review it, after which they have to process it and then issue your refund. Until things are back to normal this is going to take a very long time. All returns should be e-filed whenever possible, where they are on schedule to be processed within two to three weeks this year (normally 10 days to two weeks).

There You Have It!

Most importantly this year, make your tax appointment early and have all of your documents in order. Tax preparers are going to be under a lot of pressure this year, so be kind and do all you can to make it easier for them.

Glenn Franke is a tax accountant and the owner of Musictax.com, based in New York City, which offers tax preparation and accounting services for musicians, entertainers, and production personnel. He is a trained musician who spent years performing on tour with major artists. Franke’s guest column is provided for informational purposes only, not as a substitute for advice from your personal tax professional.

Recent News

Help Stop the Billionaire Tax Loophole

Some Wall Street millionaires and billionaires pay less taxes than hardworking teachers, nurses, and musicians through a practice known as “carried interest loophole.” This election cycle, we need to tell our members of Congress it’s time for them to make a commitment to stand up for the best interest of working families, not Wall Street millionaires and billionaires.

This loophole has real consequences for our families and our communities. It has meant that billions of dollars that could have gone to fund education for our kids and fix our crumbling bridges and schools has, instead, gone into the pockets of Wall Street billionaires.

Politicians on both sides of the aisle recognize that closing this ridiculous loophole is common sense. Democratic presidential nominee Hillary Clinton and Sens. Bernie Sanders and Elizabeth Warren have all been calling to end it. Even Jeb Bush, the former Florida governor and Republican presidential candidate, who has supported other tax breaks for the wealthy, agrees that this practice has to stop.

But there are still far too many politicians—both Democrats and Republicans—who don’t want to take action on this. It’s up to us to make sure our members of Congress hear from working families now, more than lobbyists and wealthy campaign contributors, that ending tax breaks for Wall Street billionaires is the right thing to do.

The AFL-CIO has set up a petition so you can let Congress know that it’s time to close the carried interest loophole and stop the special treatment of Wall Street billionaires.

 

Music Business, Resources, Traveling Musician

Everything You Need to Know About Tax Numbers

robert-bairdby Robert Baird, President Baird Artists Management (BAM!)

Here is a recent e-mail from an AFM member:

Hi Robert,

I have a duo, and we have a tour of the US coming up in early 2016. We’ve been told that we’ll need an IRS Tax ID number because they’ll be withholding a percentage of our earnings. I’d appreciate your guidance on how you think we should proceed.

Revenue Canada and the IRS require tax numbers, both from individuals and businesses, for a variety of reasons:

1) If you are an individual applying for a tax waiver in Canada you need an Individual Tax Number (ITN).

2) If you are an individual filing a tax return in Canada you need an ITN.

3) If you are a business submitting a tax return in Canada, you need a Business Number (BN).

4) If you are a business applying for a tax waiver in Canada you need a BN.

5) If you are a business applying for a tax waiver in Canada you need to attach an application for an ITN for all employees or subcontractors.

6) If you are an individual submitting a tax return in the US, you need an Individual Taxpayer Identification Number (ITIN).

7) If you are an individual applying for a Central Withholding Agreement, you need an ITIN.

8) If you are a business submitting a W-8-BEN-E or filing a tax return in the US, you need an Employer Identification Number (EIN).

Both in Canada and the US an individual tax number is required if an individual is not eligible for a Social Insurance Number (SIN) in Canada or a Social Security Number (SSN) in the US. Obviously, this applies to nonresidents or occasional visitors such as artists on tour.

To get an ITN in Canada you simply submit a completed Revenue Canada Form T-1261 (www.cra-arc.gc.ca/E/pbg/tf/t1261/t1261-fill-14e.pdf) and attach the required supporting documents (passport, driver’s license, or birth certificate). The documents must be originals or certified copies. Documents can be certified by local officials such as doctors, accountants, lawyers, teachers, or officials in a federal department, by having them signed, dated, and noted: “Certified a True Copy.” Revenue Canada will send you an ITN (and return any original documents) in four to six weeks.

To get an ITIN in the US you file a W-7 (www.irs.gov/pub/irs-pdf/fw7.pdf) along with an income tax return (unless you meet one of the exceptions), and a passport, or a certified copy of a passport. Passports can only be certified by the office of issue. It can take eight to 10 weeks to get an ITIN. In certain circumstances you may have to apply for and be denied an SSN first. This requires a visit to a Social Security Administration Office in the US. The denial letter is attached to the W-7 when it is submitted.

To get a BN for Canada, simply submit Revenue Canada Form RC-1 (www.cra-arc.gc.ca/E/pbg/tf/rc1/rc1-fill-14e.pdf) along with a copy of your Certificate of Incorporation.

You can get an EIN immediately by telephone, in four to six weeks by fax, or in four to five weeks by mail. Follow the instructions on this website: www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EIN.

It is important to remember that when you work in a foreign country, you should satisfy the tax requirements of that country. With the provisions of the Canada-US Tax Treaty, most tax liability is restricted to one’s own country, but it is a good idea to file an annual nonresident tax return where applicable, even if no taxes are owed.

—Please send your questions and concerns to me at: robert@bairdartists.com. While I cannot answer every question here, I will feature as many as I can, and I promise to answer every e-mail I receive.

Resources, Traveling Musician

Time to Think About Tax Refunds

by Robert Baird, President Baird Artists Management (BAM!)

robert-baird

It’s a new year and it’s time to start thinking about getting a refund of taxes withheld in a foreign country by filing a nonresident tax return.

Dear Crossing Borders,

To file taxes in the US to apply for a refund, what kind of paperwork do we need to ask promoters for? Should we be receiving copies of the forms they will be sending to the IRS? It’s my understanding that we should receive a notice from the IRS early in 2015, which will summarize the total amount that we’ve had withheld over the course of 2014. Is that correct?

First of all, it is a good idea to file a nonresident tax return if and when you work in another country. In fact, it’s the only way to get a refund of taxes that may have been withheld. We will deal with the requirements for the US and Canada separately.

United States

In the US, there is no requirement to file a nonresident tax return unless tax is owing. For work done in the US, you should receive a Form 1099 from whoever engaged you to perform. The IRS will not send you a summary of the amounts withheld; it is your responsibility to file for a refund of taxes withheld. The 1099s should be attached to your US tax return.

The US tax return for nonresidents is either a Form 1040-NR or a Form 1040-NR-EZ. If you wish to claim a refund of taxes that were withheld, you need to file a Form 1040NR. However, you do not need to file Form 1040NR if:

1) Your only U.S. trade or business was the performance of personal services; and

2) Your wages were less than $3,900; and

3) You have no other need to file a return to claim a refund of over-withheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty.

The Form 1040NR-EZ can be used if income from US sources is wages, salaries, and tips, refunds of state and local income taxes, and scholarship or fellowship grants. In addition, you may have to file a Form 8833 to claim certain Tax Treaty rights.

All nonresident tax filings go to Department of the Treasury, Internal Revenue Service, Austin, TX  73301-0215. In order to file a nonresident US tax return you will need to have an Individual Tax Identification Number (ITIN).

Canada

You are required to file a nonresident tax return if you owe tax, if you are requested to by Revenue Tax RefundsCanada, if you wish to claim a refund, or if you were granted a Tax Waiver. Not only is there a stiff penalty for failure to file a return, but arrears interest adds insult to injury, as it were. And, if you applied for and were granted a waiver in Canada, then a tax filing is required before further waivers will be considered.

For individuals, this means the filing of a T-1 Non-Resident return with a Schedule A Statement of World Income attached, along with any T4A-NR slips you received from Canadian venues. You will need to apply for an Individual Tax Number (ITN) when you file.

For businesses, you must file a T2 Non-resident return along with certain Schedules, a T4A-NR Summary (if you issued any T4A-NR slips to employees or subcontractors) and any T4A-NR slips you may have received. Businesses also need to apply for a Business Number for:

  • goods and services tax/harmonized sales tax (GST/HST);
  • payroll;
  • import/export; or
  • corporation income tax.

For both individuals and businesses in Canada, you can appoint a representative who will deal with Revenue Canada on your behalf and many nonresidents choose to do this, rather than have to deal with the culture and regulations of a foreign country.

All nonresident matters in Canada are dealt with in Ottawa. You can reach the International Tax and Non-resident Section by calling toll-free 1-800-959-8281 (individuals) or 1-800-959-5525 (businesses) and all nonresident filings go to International Tax Services, Revenue Canada, Post Office Box 9769, Station T, Ottawa ON  K1G 3Y4 CANADA.

Dealing with taxation is difficult enough in your own country, but performers should realize that keeping tax filings up to date in a foreign country just makes good business sense. Get your paperwork in order early and remember that the deadline for nonresident filings in both the US and Canada is June 15.

I welcome your questions and concerns. Please write to me at: robert@bairdartists.com. While I cannot answer every question I receive in this column, I will feature as many as I can and I promise to answer each and every e-mail I receive.