All That You Need To Know About Cross-border Tax

By Author: Ken Donaldson
Total Articles: 48
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What Is Cross-Border Tax?

Cross-border tax is to do with the taxes that are levied on a resident of one country by another country. There are many people who cross-borders to go to work or to do business and in such cases, there is a possibility of tax evasion by the people or companies. If a person earns from across the border or is running a business across the border, the information related to the earnings and the profits may not be provided by the people while they file their income tax returns. This will lead to tax evasion and to avoid this, neighboring countries are now signing cross-border tax treaties that will help in sharing of data amongst the countries specifically on the lines of income and profit earned by citizens of a country working in another.

Cross-Border Tax Treaties

• A cross-border tax treaty is generally signed between two countries that will open up the sharing of data between both the countries with respect to the income and profit earned by the citizen of one country in another country

• This enables the governments to ensure that they are not levying tax on ...
... the person twice in the same income ad also will help to identify if someone is trying to evade taxes by working across the border.

• Double taxation of residents is something that any country will want to avoid as it will show up the country in a bad light amongst the working class of a country.

• But at the same time there are some clauses and special taxation rules that are introduced in cross-border tax treaties and one cannot be aware of all the details with regard to cross-border tax.

Can a Tax Specialist Help In Cross-Border Tax Issues

If you are having issues related to cross-border tax, then it is a good option to opt for the services of a tax specialist to help you out. It is not a possibility for a layman to know all the details with regard to any tax structure and that is the main reason why there are experts in taxation who will be aware of the tax issues and the various ways to avoid tax issues. One has to remember that dealing with taxes is the job of a tax specialist and therefore the expert will be aware of almost every aspect of taxation that he is an expert on. The main reason why we don’t find an expert who is a specialist in all taxes is due to the fact that taxation is not easy to master.

What to Look Out for While Hiring a Tax Specialist

There are a few things that one has to look out for while hiring the services of a tax specialist. The reputation of the tax expert has to be checked and customer reviews of the firm or the expert will have to be analyzed. Ensure that the person is an expert in the taxation method that you are opting for as you cannot find a tax expert who specializes in all forms of taxation. The fee of the expert and the savings that he will be able to provide you has also to be considered.
About Author:-
Ken Donaldson is a chartered accountant who practices as an independent tax consultant. He also author of Canadian taxation of non-residents, in this article he provides cross-border tax tips. For more information you can visit Taxca.com.