CROSS BORDER RESOURCES

Foreign Affiliates and FAPI

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What is FAPI?

FAPI stands for foreign accrual property income and comes into play when Canadian taxpayers own a foreign corporation that is earning passive income or capital gains. Passive income generally includes income from property such as interest, rent and royalties, income from a business other than an active business, and certain taxable capital gains from the disposition of property. The purpose of FAPI is to the Canadian tax deferral that could result from using offshore holding companies to hold investments.

 

Need Help?

For more detailed information Contact us for a free consultation regarding your FAPI issues:

UHY Victor LLP Canada U.S. Tax Team

crossbordertax@uhyvictor.com
(514) 282-0067

 

Additional resources:

 

Disclaimer: UHY Victor assumes no responsibility or liability for any errors or omissions of this site. The information used in this site is provided for general guidance. This article is not a substitute for professional legal advice.

 

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