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CRA and the 2010 Olympic Games
CGA/CRA Liaison Meeting – July 8, 2008
Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSOChristine Siu, Auditor, 2010 Olympics Team, Vancouver TSO
Agenda
• Background
• CRA Involvement
• Technical Issues and Actions
• Questions
Background
• Vancouver 2010 Winter Games are the third Olympic Games in Canada:
• February 12 – 28, 2010 (17 days)
• Vancouver 2010 Paralympic Winter Games will be the first winter Paralympic Games in Canada
• March 12 – 21, 2010 (10 days)
Economic Impact
GDP ($Billion)Employment (Person Yrs) Taxes ($Billion)
6.1 126,000 1.413
8.4 187,000 2.028
10.7 244,000 2.677
Source:
Available at:
Economic Impact of the 2010 Winter Olympic and Paralympic Games: An Update, InterVISTAS Consulting Inc., October 2002, p. 78
http://www.cse.gov.bc.ca/2010secretariat/2010/index.htm
Marketing Effort
Low
Med
High
Comparison of Hockey Attendance in February
0
100000
200000
300000
400000
500000
600000
700000
Giants Pacific Coliseum
Canucks GM Place
Olympics UBC & GM Place
45,000 74,000
650,000
Background
• A major international undertaking
• Partners, sponsors, supporters and suppliers
• All levels of government and First Nations
• Businesses, athletes, officials, volunteers, visitors, and media
VANOC - The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games
Source: VANOC third quarter report for the 2007-08 fiscal year, June 20, 2008, p. 12-13
EXPENSES $2.2 billion
Sport, services and games operations $735M
Technology and Other $768M
Marketing & communications $126M
Venues $580M
REVENUE $2.2 billion
Domestic sponsorships $760M
Ticketing, licensing and merchandising $278M
Government and
Other $730M
IOC contributions $638M
Government Participation
• Government of Canada commitment - $656 million
• Province of B.C. commitment - $600 million
Government Participation
• Landmark multi-party agreement
• Provide essential government services and capital funding
• 2010 Olympic and Paralympic Winter Games Federal Secretariat
CRA Participation
• Committees & Working Groups
• CRA 2010 Website
• CRA 2010 Olympics Team
• Outreach
• Compliance
The CRA 2010 Olympics Team
• Single Point of Contact
• Committee representation
• Coordinate 2010 activities
• Research / Best Practices
• Perform audits
• Deliver outreach
Outreach
• Increase compliance through education
• Presentations to various stakeholders
• Vancouver Regional Construction Association
• NBC
• Province of BC
• Minister of National Revenue
• Beijing/X’ian Tax Officials
Compliance – Tax & GST Issues
• Sponsorships
• Underground Economy
• Provincial Income Allocation
• Increased Real Estate Activity
• Non-resident & International
• Accommodations
Hiring Non-Resident Employees
• Tax implication: A Ltd. is required to deduct CPP, EI, and Income Tax. The non-resident employee receives a T4 slip at the end of the taxation year and reports it on his income tax return filed in Canada.
A Ltd.
Employer
Construction worker (U.S.)
Employee
Regulation 105 Withholding Tax
• Tax implication: B Inc. is required to withhold and remit 15% of the gross payment per Regulation 105 of the Income Tax Act
• Non-resident would file a T1 to establish final tax liability
• Non-resident may apply for a Regulation 105 Waiver if applicableConsultant from Seattle
giving a seminar on Olympic recruitment to staff at B Inc.
Part XIII Withholding Tax
• Tax implication: The Toronto resident withholds Part XIII tax (25%) from the rental payments.
• This represents the non-resident’s final tax liability and he is not required to file an income tax return in Canada.
RENT
Australian resident owns Whistler condo
Toronto resident rents the condo during the Olympics
Non-Resident GST Issues
• A non-resident carrying on business in Canada who
• Is making taxable supplies in Canada, and• Is not a small supplier
Must register for GST/HST.
• Non-resident corporations may voluntarily register in certain situations
New Legislation 2007
• Three components• Waive non-resident withholding tax liability of the IOC
and the IPC
• Non-resident athletes and other non-resident individuals not to be taxed
• Cancel duties, excise, and GST on certain goods imported in connection with the Games
• Subsections 115(2.3), 212(17.1), and 153(1)
Accommodations IssueComparison of Rental Prices
RICHMOND Olympics Present
House $50,000 - $90,000 $3,500
Townhouse $44,250 $2,995
Condo $24,000 $1,900
VANCOUVER Olympics Present
Yaletown condo (2 b/r) $40,500 $2,250
Downtown condo (1 b/r) $18,000 $1,650
Comparison of Rental Prices
WEST VANCOUVER Olympics Present
House $102,000 N/A
Condo (2 b/r) $27,000 $1,600 - $1,975
WHISTLER Olympics Present
Whistler Village townhouse (4 b/r) $6,500/night $500/night
Blackcomb condo (2 b/r)
$1,350/night $200/night
CRA Websitehttp://www.cra-arc.gc.ca/2010games/