Lawyer Ted Citrome Quoted in Lexpert Article on "Canadian Firms at Risk for US Taxes"

Lawyer Ted Citrome was recently quoted in the article “Canadian Firms at risk for US taxes,” published by Lexpert.

The article discusses the implications of the U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., which expands states’ taxing powers to online transactions. Canadian companies selling into the United States – even those with no physical presence in a particular state – may now be required to collect and remit local sales taxes.

“There are some 10,000 different state and local sales tax regimes in the US,” said Ted Citrome, a tax lawyer in Dickinson Wright LLP’s Toronto office. “It’s going to be a tremendous burden for companies to track and monitor sales so they can ensure they stay onside.”

Indeed, some companies may not discover that they have sales tax collection obligations until it’s too late. “We can only hope that these laws will be drafted in a way that gives rise to the liability to collect only after the obligations to do so has been determined,” Citrome says.

To read the full article, please click here.