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