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 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

Comparison of Hockey Attendance in February Giants Pacific Coliseum Canucks GM Place Olympics UBC & GM Place 45,000 74, ,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 fiscal year, June 20, 2008, p 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 applicable Consultant 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 Issue Comparison of Rental Prices RICHMONDOlympicsPresent House $50,000 - $90,000 $3,500 Townhouse$44,250$2,995 Condo$24,000$1,900 VANCOUVEROlympicsPresent Yaletown condo (2 b/r) $40,500$2,250 Downtown condo (1 b/r) $18,000$1,650

Comparison of Rental Prices WEST VANCOUVER OlympicsPresent House$102,000N/A Condo (2 b/r)$27,000 $1,600 - $1,975 WHISTLEROlympicsPresent Whistler Village townhouse (4 b/r) $6,500/night$500/night Blackcomb condo (2 b/r) $1,350/night$200/night

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