Paying Canadian income tax on income made from the USA?

Question

Kinda of two questions:

1) Do I have to pay Canadian income tax on income made and taxed by the USA?

2) Are American companies required (or do they even do it) to report earnings to the Revenue Canada or is it up to the Canadian citizen to report it?

Answer 1

1. Yes in Canada you must report all world income.  But you do get a Foreign tax credit on your income tax return

2. The IRS and CCRA do share information, it may take them a while but they will find you if you are not declaring this income.

Congrats on the book deal and good luck

Answer 2

If you a cdn resident, you have to report your world income (income from within and outside Canada).

1) If your US income has been taxed there, the Canada Revenue Agency (CRA) will provide a foreign tax credit for your US income to be reported on your cdn tax return.

2) American companies are not required to report (and they dont) report their eranings to the CRA.  However, the IRS & CRA do have automatic information exchange under the tax treaty that may allow the IRS to provide to the CRA the earnings of Canadians made in the US, and vice versa.