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Non resident withholding tax
- Thread starter LOADED MILES
- Start date
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Are you paying a US driver (employee) or did you broker loads to a US Carrier?
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Wow, that's just weird...
Since when are we supposed to be with-holding taxes from other corporations that we do business with?
This doesn't make any sense...
So, what was the result of your audit? Did you have to pay anything or were you ordered to start with-holding taxes from payments to US Carriers?
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I could understand the reasoning behind this if the US carriers were declaring themselves as independent contractors. In that case if you as a Canadian broker pay them directly, you are their employer and would be required to withhold tax. Also, which US agency audited you, the IRA?
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We were penalized and had to pay a tax ( since we didnt remit the holding tax when we brokered the load ) we were responsible for pay the non resident withholding tax on the interliner behalf . worked out to about $8,000 . No association we contacted had any idea or still has any idea about this non resident tax .CRA has no resources to address Driver Inc Models to collect non paid tax dollars , but can spend better part of 1 year to go over every brokered order we sold to a USA based company and collect the non resident withholding tax . So moving forward when we sell freight to USA based carrier when they send invoice with deduct 15 percent of the Canadian portion , so if it came from TORONTO to HOUSTON , only the Canadian miles falls in the non resident tax . As the rest of move is USA miles . We avoid using USA carriers as much as possible to avoid this nonsense
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That is pretty wild shit... I'm guessing even if you did want to broker to a US carrier now, they would likely not be interested if told their rate will be reduced by 15 percent on the Canadian portion.
Thanks for letting us know about this... Sorry to hear you got shafted by our government!
Thanks for letting us know about this... Sorry to hear you got shafted by our government!
