Would like to know if a person in Canada has to declare any profits on stocks and shares for tax purposes.
Also if the person fails to do this, please tell me what the penalty could be?
Thanks
Would like to know if a person in Canada has to declare any profits on stocks and shares for tax purposes.
Also if the person fails to do this, please tell me what the penalty could be?
Thanks
You mean, capital gains? Last I heard, capital gains are taxable in Canada.
sorry, i do not know what capital gains are, please can you explain.
The gains i am referring to are from rising shares.
Income is normally assessed when the shares are sold or traded. You may wish to consult a tax professional.
Go to the IRS website and look for the publication on the US-Canadian Tax treaty for guidance. Generally the income is taxable in Canada, but you either have the choice of being taxed as a non-resident, or taxed as a US citizen where you get a crdit for any taxes paid to the government of Canada.
If you are referring to the income being derived in the US and the person residing in Canada, then you will have to try a Canadian board, the Canadian tax authority, or a Canadian tax professional (Charterred Accountant and alike).