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Washington/Ottawa, May 14 (Canadian-Media): Thousands of Canadian residents with United States (U.S.) citizenship across the country had been struggling with the impact of huge tax bills as a result of U.S. president Donald Trump's tax bill signed into law just before Christmas, media reports said.
"It's a huge problem for Canadian businesses and it needs to be addressed, so I'm sure it will probably come up in some of the meetings." Wayne Easter, Liberal MP and co-chair of the Canada-United States Interparliamentary Group, said
Particularly hard hit reportedly are those who have been using their corporations to save for retirement as the owner has to declare the money on their 2017 personal tax return.
While those affected can elect to spread the bill over eight years, they have until June 15 to file their tax returns and begin making payments.
Canadian Finance Minister Bill Morneau's office said finance department officials who speak regularly with their American counterparts could not confirm whether they have discussed the impact the tax reform is having in Canada and added,
"I think what's happened here is that a decision was made and there's a whole lot of collateral damage or unintended consequences. There will have to be more government-to-government discussions and we'll be able to, I think, broach the issue and tell members of Congress how problematic this is for Canadians or Americans who are in Canada who set up retirement plans with the best intentions based on the rules that were already in place."
Biil Morneau/Courtesy of Canadian Press
Conservative Senator Michael MacDonald, co-chair of the interparliamentary group, said,
"I'm no tax expert but I am familiar with some of the impact of the bill in terms of double taxation of people and there's a lot of money being drained back into the U.S. from Canadian corporations... In terms of us having a lot of impact in that area, I think the odds are relatively slim because that has been signed into law by the U.S. government, by the president."