As the provincial economy scales new heights, many Alberta-based companies are looking to expand into American markets.

But if an expansion-minded company fails to lay the proper groundwork before proceeding, it’s a move that can lead to peril as well as profit.

Whether the plan is to set up a subsidiary, a partnership or a distributorship south of the border, the truly wise corporate decision maker will minimize the risk by seeking international tax advice from the most knowledgeable specialists in Western Canada – the U.S. Corporate Tax Services Group at KPMG.

“We’re seeing more and more corporations, both public and private, seeking our advice up front,” explained Jim Rowling, the American-born tax lawyer who’s in charge of this talented, Calgary-based group.

KPMG’s U.S. Corporate Tax Services Group includes, back row from left, Nick Cham, Janice Connors, Céline Lagacé, Joyce Lin and Jeff Tsuji, and front row from left, Susanne Jacobs, Jim Rowling and Christy Palmer.

“It can be very expensive and painful for a company to contact us after management has discovered, first-hand, how complex federal and state tax laws can be.”

Rowling has hand-picked a team of outstanding experts, each with the skill, acumen and broad base of experience to offer important insights into every aspect of American tax law.

Under Rowling’s guidance, KPMG’s U.S. Corporate Tax Services Group will advise your executive team how to set up an American base of operations in the most tax-efficient manner possible.

As Rowling explains, doing business in the U.S. can be more complicated than it seems at first glance.

For example, each of the 50 U.S. states operates under its own unique set of tax rules and are not bound by treaties entered into by the federal government. “Many of the states are in the red and they’re generally looking for ways to raise revenue. Foreign companies are popular targets because they don’t vote,” Rowling said with a wry smile.

Therefore, it’s particularly important that Canadian companies closely examine every option when deciding on the most advantageous location for an American office.

“We can help you explore strategies for financing and setting up operations in the U.S.,” Rowling said.

When unprepared Alberta companies try to tap the U.S. market, they often find themselves tied in knots by conflicting Canadian, U.S. federal and state tax legislation.

Some of the more baffling questions:

* How to meet U.S. reporting requirements when your company does business in the U.S., even though it may not have a permanent American base?

* How to manage funds which may be repatriated from one country to another?

* How to decipher related-party cross-border charges for U.S. subsidiaries of Canadian corporations?

* How to calculate differences between Canadian and U.S. transfer-pricing rules and regulations for products and services? In short, there are many good reasons why it makes sense to consult the experts before putting your expansion plans into place.

KPMG’s U.S. Corporate Tax Services Group deals exclusively with these specific issues. There’s nobody better qualified to improve your company’s tax position and to minimize its exposure to U.S. tax liabilities.

Rowling’s experts can help your Canadian company carry out mergers and acquisitions with U.S. targets in the most efficient tax manner. They will also provide tax due diligence to minimize the company’s tax exposure, while accurately assessing U.S. tax treatment for American shareholders.

“Or if you want to sell part of your business, we can help you decide the best way to do so, from a taxation point of view,” Rowling continued.

“From an advisory services perspective, we help you plan to minimize your worldwide effective tax rate. That’s the bottom line,” he added. “Public companies which lower their taxes also increase their earnings per share.”

On the compliance side, KPMG’s U.S. Corporate Tax Services Group gives you the wherewithal to meet every reporting requirement, as spelled out by federal and state tax legislators.

“Tax laws in the U.S. are confusing and complex and penalties for failure to comply are substantial,” Rowling said. “It’s essential to provide accurate and reliable information to U.S. taxing authorities.”

But that’s not all. The KPMG team’s versatility and expertise gives you an additional heads-up in terms of state sales, franchise and property taxes.

Each of these certified, experienced specialists are based locally in Calgary. So when it’s time to talk business, there’s no need for faxes, conference calls or e-mails.

You can meet with the team over coffee and discuss your business plans, face to face, in the boardroom. Then let KPMG’s U.S. Corporate Tax Services Group carry the ball from there.

For more information, Jim Rowling invites you to call him via his direct line: 403.691.7947. Or send him a personal e-mail at: jrowling@kpmg.ca.