Practical solutions to manage the immigration risks and tax compliance obligations for business travelers from Canada to the US, presented by Evelyn Ackah, Immigration Lawyer, BA, LLB ( Alberta, Ontario), Founder and Managing Lawyer at Ackah Business Immigration Law, Canada; and Laura McLeman, CPA, CA, CPA (Illinois), of Citizen Abroad Tax Advisors Using NAFTA - The preferred tool to facilitate cross-border movements between Canada and the United States is the North American Free Trade Agreement - NAFTA - Used for temporary entry - not permanent - NAFTA was established in 1994 to support economic and trade relationships between the United States, Canada and Mexico - As part of NAFTA, three main nonimmigrant categories were created: 1) Business Visitors (B-1 Visa) 2) Professionals (TN Visa) 3) Intra-company transferees (L-1 Visa) Benefits of HR and Leadership Training on Cross-Border Business Issues - Create awareness of the rules for business leaders and HR - Allows business to address the issue and make informed business decisions regarding risk vs actual cost - Increases the compliance of employees who are taxable - Informing employees of their responsibility - Puts the risks on employee and reduces the employer’s risk if employees ignore and attempt to push the consequences to management - Protects Employer from significant tax, interest and/or penalties - Address the issue instead of ignoring the issue

2. CROSS-BORDER BUSINESS:
PRACTICAL IMMIGRATION
SOLUTIONS
Evelyn L. Ackah
Founder/Managing Lawyer
January 30, 2018

3. About Evelyn Ackah
Evelyn Ackah is the Founder and Managing Lawyer of Ackah Business
Immigration Law. Her practice focuses exclusively in the area of Canadian and
cross-border US business immigration law. She has been practicing law for 20
years – first in Toronto and then Calgary. Prior to launching her own firm in 2010,
Evelyn was a Partner at an international law firm.
She and her dynamic team provide expertise to corporations and individuals in the
development and implementation of immigration strategies and they advise clients
on immigration matters involving employee mobility and relocation. Ackah Business
Immigration Law embodies Evelyn’s independent spirit, her passion for law and her
desire to provide the best possible client service.
(403) 452-9515
3

4. Introduction
ACKAH BUSINESS IMMIGRATION LAW
• Immigration rules and regulations can be confusing,
stressful and always changing
• Ackah Business Immigration Law focuses exclusively
on cross-border immigration law
• Our goal is to simplify and expedite the immigration
process and smooth the way to Canada and the
United States for professionals and their families
Crossing Borders Seamlessly

5. Cross-Border Immigration Law
5

6. Using NAFTA
• The preferred tool to facilitate cross-border movements
between Canada and the United States is the North American
Free Trade Agreement - NAFTA
• Used for temporary entry - not permanent
• NAFTA was established in 1994 to support economic and
trade relationships between the United States, Canada and
Mexico
• As part of NAFTA, three main nonimmigrant categories were
created:
1) Business Visitors (B-1 Visa)
2) Professionals (TN Visa)
3) Intra-company transferees (L-1 Visa)

7. NAFTA Business Visitor/ B-1 Visa
• Intended for short-term entry – meetings,
training, sales activity
• Employers should ensure NAFTA Business
Visitor employees always have a travel letter
when crossing the border
• Remuneration must be paid from home country
• Cannot be engaged in “work” activity
• Must ensure employees are prepped before
attending at port of entry

8. NAFTA Business Visitor/ B-1 Visa
Examples of business activities:
• Consulting with business associates
• Traveling for a scientific, educational, professional
purposes, business convention, or a conference
• Settling an estate
• Negotiating contracts
• Participating in short-term training

9. NAFTA Business Visitor/ B-1 Visa
To be eligible for NAFTA business visitor status, you
must demonstrate that:
• You are a Canadian or Mexican citizen
• The purpose of your visit to the United States, is for
qualified business activities of legitimate nature
• The business activities must be international in scope
• You have no intention of entering US labour market
• Your primary source of remuneration remains outside
the US

10. NAFTA Business Visitor/ B-1 Visa
• Must ensure business visitor is prepped before
attending at port of entry for successful entry
• Ideally you should always have a letter that confirms the
reason for your cross-border business travel – to
support your verbal submission (i.e. a letter or email
inviting you for an interview or meeting in the U.S. etc.)
• The most important thing when dealing with cross-
border business travel is knowing what to say and
what not to say
• Must not say “work” if entering as a business visitor
– that is a four letter word!
10

11. Eligibility Criteria
• Your principal place of business remains outside the
United States
• You are resident outside the United States and will
depart upon completion of your business visitor entry
• You have enough funds to cover the expenses of the
visit and your stay in the United States
• You will comply with existing immigration requirements
for temporary entry and
• You are otherwise admissible to the United States

12. What Is Your Intention?
Non-Immigrant Intention is very important
• You must be able to satisfy US CBP of your non-immigrant
intention upon appearing at the customs desk
• You must present sufficient proof to establish that you are
entitled to the NAFTA Business Visitor non-immigrant
classification
• You must maintain a foreign residence and have no
intention of abandoning that residence
• Your entry must be for a short-term purpose

13. Maximum Length Of Stay
• NAFTA business visitors can stay within the
United States for a maximum of 6 months at the
initial point of entry
• Extensions can be granted for up to 6 months
so long as you can satisfy US immigration of
non-immigrant intention

14. NEXUSPASS
• Highly recommend obtaining NEXUS to facilitate
business travel to the United States
• NEXUS is designed to expedite the border
clearance process for low-risk, pre-approved
travelers
• Must be a US or Canadian citizen - Permanent
Residents don’t qualify

15. NAFTA Professional/ TN Visa
• Renewable indefinitely – 3 year terms at a time
• Must meet educational or experience criteria
• Must be exercising the skills of the profession
• Must have an offer or contract
• NAFTA lists 66+ professions including Engineer,
Nurse, Lawyer, Teacher
• “Manager” or “Director” titles are not eligible
positions

16. NAFTA Professional/ TN Visa
• To qualify for TN status, the intended U.S. activity must be in a
profession listed in Appendix 1603.D.1 of NAFTA and you must
posses the necessary credentials to be considered a professional
• You must actually perform professional-level activities in the U.S.
• Almost all of the professions listed require a Bachelor’s degree or
higher
• Only Bachelor degree exceptions: Management Consultant,
Scientific Technician/Technologist, Technical Publications
Writer, Medical Laboratory Technologist
16

17. NAFTA Professional/ TN Visa
TN VISA DEFINITIONS
Canadian Bachelor’s Degree
• A Canadian three-year bachelor’s degree program
satisfies the degree requirement; the important element is
the requisite degree and not the length of the course of
study
Post-Secondary Diplomas and Certificates
• defined as a credential issued, on completion of two or
more years of post secondary education, by an accredited
academic institution in Canada, the U.S. or Mexico
17

18. NAFTA Professional/ TN Visa
• TN Visas are not dual intent – meaning very difficult to
move to Green Card status (not easy but possible)
• There are ways to move from TN to H1B Visa (which is a
dual intent Visa category) and then to Green Card
• There is no limit on the number of TN Visas issued annually
– different from the H-1B Visa
18

19. NAFTA MANAGEMENT CONSULTANT/TN Visa
• Must have a Bachelor’s degree, licenciatura degree or
five years experience in a related field
• Management consultants provide services which are
directed toward improving the managerial, operating and
economic performance of public and private entities by
analyzing and resolving strategic and operating problems
and thereby improving the entity’s goals, objectives,
policies, strategies, administration, organization and
operation
• Arm’s length versus Employee
19

20. NAFTA Intra-Company Transferees/L1
• For employees at “Executive” or “Managerial” level or
who have “Specialized Knowledge”
• Must have worked 12 consecutive months in preceding 3
years for the foreign related entity
• Must prove proper corporate affiliation of entities
• Up to 5 years for specialized knowledge workers and 7
years for managers/executives
• Non-NAFTA Intra-Company Transfer category for those
who are not American or Mexican

21. Practical Pointers At The Border
• Educate the person crossing the border
• Know the purpose of entry and your itinerary
• Always be courteous with immigration officers - they have a
lot of power and discretion
• Always be honest - this avoids potential misrepresentations
• Always travel with proper supporting documentation
• Try to travel during regular business hours during the week -
never travel on holidays
• Never insist on entry if problems occur - withdraw the
application, this is better than a refusal
• Dress like a professional - appearance is important

22. Practical Pointers At The Border
Watch out for:
• Ineligibility due to criminal convictions or prior refusals
• Ineligibility due to medical inadmissibility
• Entry visa requirements
• Changes in laws, policies or procedures

23. ACKAH BUSINESS IMMIGRATION LAW
We provide the following cross-border immigration law
services:
• Temporary Status – Work Permits (TN, L1, H1B, E- Visa),
Study Permits, Visitor Visas, LMIAs, Intra-company
transfers, NAFTA (Professional), Spousal Work Permits,
Criminal Rehabilitation, Restoration of Status, NAFTA Work
Permits
• Permanent Status – Express Entry PR, Live-in Caregiver
PR, Provincial Nominee Program, Canadian Citizenship, US
Green Card and US Citizenship
23

24. Conclusion and Questions
Contact Ackah Business Immigration Law for immigration advice to help
you navigate the complex maze of rules and regulations involved with
Canadian and United States immigration law with confidence
www.ackahlaw.com
1-800-932-1190
eackah@ackahlaw.com
THANK YOU!! QUESTIONS

26. Laura L. McLeman, CPA, CA
CPA (Illinois)
Tax Implications of Cross-Border
Employees
January 30, 2018

27. Laura L. McLeman, CPA CA
• Laura is the founding partner of Citizen Abroad Tax Advisors.
Focused on making expat taxes as simple and easy to
understand as possible, she has helped U.S. and Canadian
citizens meet their cross-border and expatriate tax filing
requirements for more than 20 years.
• Laura is professionally designated as a Chartered Professional
Accountant and a Certified Public Accountant.
• Laura and her partners advise mid- to large-sized companies
on the payroll and income tax obligations of their cross-border
employees—serving those employees directly and individually
to relieve organizations from having to manage their tax
considerations.

28. Individual Income Tax – Types of Cross-
Border Employees
• Business Trip Travelers or Frequent Business Travelers (FBT)
Less than 30 days in US, typically not a project employee
Could be up to 90 days in US
• Short Term Temporary Assignment
3-12 months
• Long Term Temporary Assignment
1-5 years
• Permanent Assignment
Indefinite period of time
• Stealth Traveler

29. Why Talk About This Now?
“If it ain’t broke…”
• Increased Frequent Business Travelers (FBT)
• Heightened Sensitivity to Cross-Border Travel
– Governments want “their share”
– BEPS Action 7 - Permanent Establishment caused by key
employees or FBTs
• Voluntarily complying vs complying in response to
audit or review
• Technology improving for tracking travelers
• More information regarding cross-border
obligations (making non-compliance more of a
willful issue)

30. 10 years ago
CanCo.
Customer / US Co
/ or US project
Canada
USA

31. Now
CanCo.
Customer /
US Project
Canada
USA
- Key Execs / Sales teams
- Project Managers / Engineers
- Installers

32. Why NOW?

33. So What?
• Payroll Tax
– Penalties and Interest for failure to withhold or obtain waiver of
withholding
– Reporting Requirements; Recovery of tax is easier
• Corporate Tax**
– Inadvertent creation of permanent establishment for Canadian company in
United States
– Inadvertent creation of Nexus in State
• Employee Individual Income Tax
– Employee may be required to file US tax returns and pay tax in the United
States and may seek to recover from Employer
• Burden of “Getting Caught”
– Impact on Corporate reputation/ Bad Publicity
– Time and energy with respect to audit vs time and energy with respect to
compliance (often easiest to do it right the first time)

34. So What?
For project driven companies
(i.e. service provider companies such as those in
engineering) - Without proactive compliance,
the company has lost the opportunity to price
the cost of potential US tax implications and US
tax compliance into contracts with client

35. Payroll Tax - Employer Obligations in the
United States
• Employers are required to:
– Determine where Cross-Border employees worked
– Determine the amount of taxable income earned in US /
State
– Withhold and remit US Federal and State tax (monthly)
OR obtain waiver of such requirement
– Reporting of wages to IRS and State (form W2 or 1042-S)
• Very few exceptions to the withholding
requirement

36. Payroll Tax - Exception for FBT
• No US Tax Withholding requirement under the
following conditions
– Employee of Canadian Corporation
– Temporarily present in the US for no more than 90
days in the calendar year
– Pay relating to their services in the US does not
exceed $3,000 USD

37. Payroll Tax – Waiver under treaty
• Employee qualifies for exemption under Canada -
US Tax Treaty
• Applying for waiver of withholding of US tax at
employee level relieves employer from withholding
and remitting Federal US tax
– Employee still required to file return and obtain US tax ID
Number
– Employer still required to report wages to IRS
– Administrative burden
**First year is the most difficult year

38. Corporate Tax – Impact of Cross Border
Employees
• Employees performing services in the US can
create
– Permanent Establishment for Canadian company in
the US
– US and State Corporate Tax Filing requirements
– Transfer Pricing issues - if seconding or transferring
employees to related US company (i.e. US
subsidiary) or Canadian employees performing
services for US subsidiary

39. Individual Income Tax – Employees traveling to
the US for employment purposes
• If an individual has income from effectively connected
income in the US, he/she is required to file a US tax return
and report the income and calculate tax
• Canada-US Tax Treaty can provide relief from taxation
• Exemption from tax doesn’t mean exemption from filing a
return and claiming the Treaty position
• Filing a late return with treaty exemption (Nil tax), can still
result in penalty
• State may not follow the Canada-US Treaty (e.g. California)
and state tax may still apply

40. Challenges of managing business travel
Which of the following aspects of managing business trips are a challenge for
your organization?
Tracking business travelers 42%
Monitoring and controlling cost 42%
Tax and social security compliance 36%
Immigration compliance 32%
Ensuring the policy is applied
consistently
29%
Employee concerns on personal security 22%
Impact of frequent travel on employee’s
home life
17%
Processing expenses 17%
Source: ERC MOBILITY Magazine, June 2017: ECA International Business Trips Survey 2017
Percentages add up to more than 100% because more than one method may be used.

41. Tracking tools
How are business travelers tracked?
Using data from the company’s travel booking
platform
50%
Employee expense reports 37%
Travel reports filed by team administrators 31%
Tracking software specifically for business
travelers
23%
Employee maintains personal travel calendar 18%
Other 5%
Source: ERC MOBILITY Magazine, June 2017: ECA International Business Trips Survey 2017
Percentages add up to more than 100% because more than one method may be used.

42. Cost of Non-Compliance
Individual and Corporate Obligations
What is the “Cost” to comply?
2017
(i.e. First Year)
Estimated
Employee
Time (Hrs)
Estimated
Third Party
Fees ($$)
Estimated Tax
($$)
Payroll
Reporting
3.5 $ 850 0
Individual Tax 2.0 $ 750 0
Total Cost /
Employee
5.5 hours $1,600 0

43. Cost of Non-Compliance
Individual and Corporate Obligations
What is the “Cost” to Comply?
2018
(i.e.
Subsequent
years)
Estimated
Employee
Time (Hrs)
Estimated
Third Party
Fees ($$)
Payroll
Reporting
1.5 $ 300
Individual Tax 2.0 $ 750
Total Cost /
Employee
3.5 hours $1,050

44. The Compliance Burden
Cost of Non-Compliance (borne by Corporation)
Failure to withhold = 0.5% per month x required withholdings up to maximum of 25%
Failure to File Form 1042-S = $100 to $250 per form required OR, if greater, 10% of the total
amount of income that was to have been reported
Failure to Disclose income (even if exempt from tax under Treaty) - penalty of up to $10,000.
Company Exposure to US Tax – by not proactively managing employee time in country, the
Company could be exposed to US tax issues.
Plus the original costs of compliance.
In addition, you may be required to remit the tax that should have been withheld, and, if
employees have left – recovery of the withheld tax may not be possible.

45. Getting Started…
• Identify Key “Mobile” Employees
Educate on key activities that create potential US tax issues
• Understand current exposure (i.e. 2017) for Corporate, Payroll and
Individual Tax
• Get your Corporate Cross-Border Tax plan in place
• Prospectively track Employee movement cross-border
US vs Canadian (in country) timecodes
Travel Expense review to find “stealth travelers”
Understand Risk Thresholds for Employee and Company
Provide travel tracking apps to your Employees (GT Global Tracker, Orion Mobility,
Concur, Pinpoint)
• Estimate Employee time in US at beginning of project
If taxable and reportable - consider compliance costs as part of project cost
• Consider “assignment” of Canadian employees who can create
corporate tax issues

46. Benefits of Addressing the Issue
• Create awareness of the rules for business leaders and HR
• Allows business to address the issue and make informed
business decisions regarding risk vs actual cost
• Increases the compliance of employees who are taxable
• Informing employees of their responsibility
• Puts the risks on employee and reduces the employer’s risk if
employees ignore and attempt to push the consequences to
management
• Protects Employer from significant tax, interest and/or
penalties
• Address the issue instead of ignoring the issue

47. Problems
Counting/Tracking the days
Determining if Employee is
Taxable and Reporting the
Income
Compliance Costs
Visa vs Tax Issues
Corporate
Reputation
Far more work
than before = who
has time???

48. Solutions
Provide Calendar / App
recommendations to Track days
Presentation / Memos
to Employees
Tax Return
Preparation or
guidance
Assistance with
determining
withholding and
remittance
requirements
Determining if Taxable or
Exempt under
Federal/State Treaties

49. Citizen Abroad Tax Advisors
- We can determine exposure for company and
employee by reviewing 2017 activity
- Internal time and energy can be alleviated by
External assistance but this can increase costs
- We work with company and employee to ensure
compliance “best efforts”
- Mid-Sized cross-border projects are our area of
expertise
- Cost Effective solution using experienced Expat
professionals