
6 injured in Colorado flamethrower attack on rally for Israeli hostages
BOULDER, Colo. — Six people were injured Sunday in what the FBI immediately described as a 'targeted terror attack' at an outdoor mall in Boulder, Colo., where a group had gathered to raise attention to Israeli hostages held in Gaza.
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The suspect, identified as 45-year-old Mohamed Sabry Soliman, yelled 'Free Palestine' and used a makeshift flamethrower in the attack, said Mark Michalek, the special agent in charge of the Denver field office. Soliman was taken into custody.
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We are aware of and fully investigating a targeted terror attack in Boulder, Colorado. Our agents and local law enforcement are on the scene already, and we will share updates as more information becomes available. @FBI
— FBI Director Kash Patel (@FBIDirectorKash) June 1, 2025
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Soliman was also injured and was taken to the hospital to be treated, but authorities didn't elaborate on the nature of his injuries.
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Video from the scene showed a witness shouting, 'He's right there. He's throwing Molotov cocktails,' as a police officer with his gun drawn advanced on a bare-chested suspect with containers in each hand.
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The attack took place at the popular Pearl Street pedestrian mall, a four-block area in downtown Boulder, where demonstrators with a volunteer group called Run For Their Lives had gathered to raise visibility for the hostages who remain in Gaza as a war between Israel and Hamas continues to inflame global tensions and has contributed to a spike in antisemitic violence in the United States. It occurred more than a week after the fatal shooting of two Israeli embassy staffers in Washington by a Chicago man who yelled 'I did it for Palestine, I did it for Gaza' as he was being led away by police.
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FBI leaders in Washington said they were treating the Boulder attack as an act of terrorism, and the U.S. Justice Department — which leads investigations into acts of violence driven by religious, racial or ethnic motivations — decried the attack as a 'needless act of violence, which follows recent attacks against Jewish Americans.'
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CBC
40 minutes ago
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Israel recovers bodies of Canadian Israeli Judih Weinstein-Haggai and husband held by Hamas
Israel's military recovered the bodies of two hostages, Canadian Israeli Judih Weinstein-Haggai and her husband, Israeli American Gadi Haggai, who were held by Hamas, Prime Minister Benjamin Netanyahu said on Thursday. The Israeli army said in a statement that the bodies of the husband and wife were recovered in a special operation from Khan Younis area in the Gaza Strip. "Together with all the citizens of Israel, my wife and I extend our heartfelt condolences to the dear families. Our hearts ache for the most terrible loss. May their memory be blessed," Netanyahu said in a statement. Kibbutz Nir Oz announced the deaths of Weinstein-Haggai, 70, and Haggai, 72, both of whom had Israeli and U.S. citizenship, in December 2023. The Israeli military said they were killed in the Oct. 7, 2023 attack and taken into Gaza by the Mujahideen Brigades, the small armed group that it said had also abducted and killed Shiri Bibas and her two small children. Weinstein-Haggai grew up in Canada and held Canadian and U.S. citizenship. She was born in New York state but moved to Toronto at the age of three, and then moved to Israel 20 years later to live with Haggai. She was a mother of four and a grandmother of seven. Following the recovery of two bodies, 56 hostages are still held by Hamas, with fewer than half believed to be alive, according to Israeli estimates. Israel launched its military campaign in Gaza following the Oct. 7 assault in which Hamas-led gunmen killed 1,200 people and took 251 hostages, by Israeli tallies. In the subsequent fighting, more than 54,000 Palestinians have been killed, local health authorities say.


Globe and Mail
an hour ago
- Globe and Mail
With Trump's budget bill looming, here's how U.S. foreign withholding tax works
Canadian investors may not be aware that when they earn income from a foreign investment, they may also be effectively paying a withholding tax to a foreign country. As countries cannot collect taxes from non-residents directly, most will hold back part of the income a foreign investor receives from a company incorporated in that country. 'It's just the simple way to make sure the government gets their tax,' says Karl Dennis, partner and national leader of the U.S. corporate tax team for KPMG in Canada. Now, a provision in U.S. tax legislation passed by the House of Representatives threatens to raise taxes on investors in Canada and in other countries that impose taxes, such as a digital services tax, that the U.S. deems unfair to U.S. corporations. Under section 899 of U.S. President Donald Trump's One Big Beautiful Bill, Canadians who hold U.S. securities or invest in U.S. companies through Canadian investment funds could see the rate of U.S. foreign withholding tax on dividends they receive rise significantly. At this point, cross-border tax experts have different interpretations of just how much the increase would be. Some understand the bill as increasing the rate of U.S. foreign withholding tax by a maximum of 20 percentage points, either to 35 per cent from the 15 per cent rate available under the Canada-U.S. tax treaty, or to 50 per cent from the 30 per cent statutory foreign withholding tax rate when a taxpayer is ineligible for the treaty rate. Others interpret the ceiling as 50 per cent, or a maximum of 20 percentage points above the statutory rate of 30 per cent, starting from the treaty rate of 15 per cent, where applicable. Tax experts say they're monitoring the progress of the bill and suggest the provision could be revised before its possible enactment. John Natale, head of tax, retirement and estate planning services, wealth, at Manulife Investment Management, says investors should speak with their financial advisors or tax advisors rather than sell U.S. investments solely because of the proposed legislation. 'Sometimes, people are eager or panic,' Mr. Natale says. Here's a brief overview of how U.S. withholding tax currently affects Canadian investors based on the types of investments and where those investments are held. (The tax implications for U.S. citizens who live in Canada aren't addressed in this article, as those investors would be treated differently.) Under the Canada-U.S. tax treaty, the U.S. imposes a withholding tax of 15 per cent on dividends paid from U.S. companies to Canadian investors, which is half the default rate of 30 per cent under U.S. tax law. To access the reduced treaty rate, a Canadian investor holding U.S. investments in a non-registered account needs to complete a U.S. W-8BEN form. The withholding tax applies to dividends but, in general, not to interest from bonds or savings accounts, or to capital gains realized on the sale of U.S. investments. (One exception is real estate: Canadians pay U.S. taxes on interest earned from U.S. rental property and on capital gains from selling U.S. real estate.) In a non-registered, taxable account, a Canadian investing directly in U.S. companies is subject to U.S. withholding tax on the dividends they receive. When a Canadian invests in a Canadian mutual fund or exchange-traded fund that invests in U.S. equities, the fund itself is the taxable entity in terms of U.S. withholding tax. The fund then distributes the foreign dividend income to the unitholder and reports the amount of foreign withholding tax. For example, a Canadian investor who is allocated $100 in U.S. dividends would receive $85, with the financial institution remitting $15 to the U.S. Internal Revenue Service. The financial institution would then issue a tax slip – either a T3 or a T5 – reporting $100 in foreign dividends and $15 of foreign tax paid. The investor would then report the $100 dividend on their income tax return and claim a foreign tax credit for $15. Under the proposed U.S. tax bill, the withholding rate would increase by five percentage points for every year the foreign country continues to charge an 'unfair' tax. (Cross-border experts have different interpretations on whether the increases would max out at 35 per cent or 50 per cent, where a treaty rate of 15 per cent is available.) Josée Baillargeon, director of taxation policy at the Securities and Investment Management Association, says it's unclear whether any additional taxes imposed under section 899 above the treaty rate would be eligible for a foreign tax credit or a deduction from income in Canada. 'We're currently seeking clarification on this matter from the Canada Revenue Agency,' Ms. Baillargeon said in a statement sent by e-mail. The U.S. doesn't recognize the tax-deferred status of Canadian registered plans that aren't retirement accounts, such as the tax-free savings account (TFSA), the registered education savings plan (RESP), the registered disability savings plan (RDSP) and the first-home savings account (FHSA). That means Canadians who invest in U.S. companies or hold Canadian mutual funds and ETFs that invest in U.S. equities held in TFSAs and RESPs are subject to U.S. foreign withholding tax on dividends, just as they would be if they held those investments in a taxable account. However, as these plans are tax-sheltered accounts in Canada, the Canadian investor doesn't receive a tax slip reporting the foreign dividends and foreign withholding tax, nor can they claim the foreign tax credit in Canada to offset the withholding tax. That means the 15 per cent U.S. withholding tax is a net cost to the investor that can't be recovered. The U.S. does recognize RRSPs, RRIFs, life income retirement accounts (LIRAs) and life income funds (LIFs) as retirement accounts and tax-deferred accounts. That means Canadians who invest in U.S. companies, or who hold ETFs listed on a U.S. exchange that invest in U.S. equities, are exempt from U.S. withholding tax on the dividends they receive. Adam Seliski, partner, international tax and transaction services with EY Canada, says it's unclear whether retirement accounts would continue to have access to their exempt status if section 899 were enacted. 'That's something we're monitoring very closely,' Mr. Seliski says. Even under current rules, the retirement account exemption isn't available for Canadian investors who hold Canadian mutual funds and ETFs that invest in U.S. equities. Canadian U.S. equity funds held in retirement accounts are subject to U.S. withholding tax, and investors don't have access to a foreign tax credit to offset, representing a drag on fund performance. While there may be an advantage to holding a U.S. investment directly in a registered retirement account in terms of avoiding U.S. foreign withholding tax, Canadian investors who own U.S. assets must also consider annual Canadian foreign reporting obligations, U.S. estate tax implications, and the cost of currency conversion.


CBC
2 hours ago
- CBC
Trump's 'big, beautiful' tax reform bill could cost Canadians billions
Social Sharing A small, obscure section buried in U.S. President Donald Trump's One Big Beautiful Bill Act could cost Canadians and Canadian companies billions of dollars, CBC News has learned. Moreover, it could hand Prime Minister Mark Carney's government yet another political hot potato from south of the border — forcing it to choose between scrapping Canada's digital services tax (DST) or risk the U.S. imposing a new withholding tax on the income Canadians, Canadian companies and pension plans receive from investments in U.S. securities. While it still has steps to go before becoming law, the provision has Canadian experts worried. "This is building a nuclear option into a tax treaty that has lasted for 80 years between Canada and the U.S," said David Macdonald, senior economist with the Canadian Centre for Policy Alternatives. "Just like the U.S. is totally willing to blow up the international trade order, they're totally willing to blow up international tax rules." The concern centres on Section 899 of Trump's One Big Beautiful Bill — more than 1,000 pages of proposed legislation that Trump says will make good on his domestic campaign promises, including tax cuts for Americans. The bill passed the House of Representatives on May 22 by one vote and now has to be approved by the Senate. Section 899, entitled Enforcement of Remedies Against Unfair Foreign Taxes, would increase withholding taxes for non-resident individuals and companies from countries that the U.S. believes have imposed discriminatory or unfair taxes. Experts believe Canada is likely to be one of the countries targeted by the measure because of U.S. government criticism of the DST. The tax applies to all large businesses, foreign and domestic, that earn revenues from certain online business models in Canada. Global minimum tax measures adopted by Canada could also put it in the Trump administration's crosshairs. Up to 20% withholding tax The timeline for the legislation is in flux and Section 899 could still get dropped from the bill or be amended. If, however, Section 899 becomes law, it could hit Canadians in different ways. For example, the U.S. currently imposes a 15 per cent withholding tax on dividends Canadians receive from U.S. companies. Under tax treaties, however, an equivalent tax credit from the Canadian government generally offsets the withholding tax. If the measure becomes law and the Trump administration designates Canada as a country with discriminatory taxes, a new five per cent withholding tax would go into effect. That tax would increase by five percentage points per year to a maximum of 20 per cent. It is not known if Canada would adjust its tax credits to offset such a tax. Max Reed, a cross-border tax lawyer with Polaris Tax Counsel, said the potential impact could be wide ranging. "It's definitely going to be in the billions, maybe tens of billions," he said. Kim Moody, founder of Moodys Private Client and Moodys Tax, agrees. "Billions, absolutely billions, for sure, would be the impact," he said. "If Canada and the United States allows this to take hold, the result will be chaos. Absolute chaos." Experts say it is not clear exactly how the tax would be applied. For example, would the new withholding tax be imposed on top of existing withholding taxes? Would it also apply to securities held within registered accounts such as RRSPs or only to dividends from shares held directly by Canadians? WATCH | The 'Big, Beautiful Bill' and your wallet: What Trump's 'Big Beautiful Bill' means for Canadians' wallets 4 days ago Duration 4:49 U.S. President Donald Trump indicated that he would increase government spending and loosen some fiscal restraints with a new spending bill dubbed the "big beautiful bill" last week. Mark Ting, a partner with Foundation Wealth and On The Coast's personal finance columnist, says that markets have already responded positively to the bill. Finance Minister François-Philippe Champagne's office declined an interview request from CBC News. "Analysis of the implications of the U.S. tax reform bill is ongoing and we await the final version of the bill," wrote spokeswoman Audrey Milette. The U.S. embassy also declined to comment on Section 899 or how it would work. "We are unable to comment at this time as the legislation is still pending final approval," responded an embassy official. U.S. Internal Revenue Service figures show that in 2022, the U.S. withheld $2.9 billion US in tax on $108.5 billion US worth of income from a variety of U.S. sources for Canadian residents and companies. The IRS said $261.4 million US was withheld from individual Canadian residents while $1.22 billion was withheld from companies and $1.24 billion US under the category of Canadian "withholding rate pools (general)." Of the sources of U.S. income received by Canadians, the IRS said $31 billion US was from dividends — half of which went to Canadian corporations. Impact on pensions and beyond David Pierce, vice-president of government relations for the Canadian Chamber of Commerce, said the chamber began getting worried messages from Canadian businesses once Trump's tax reform bill passed the House of Representatives. "I think the attention and the awareness of it really grew from what was a small subset of companies, now right across the economy — from financial to pensions to, you name it," Pierce said. "They're all very concerned at what this means for average Canadians in your retirement savings and how this would be applied should, of course, it become law." Pierce said the potential cost of Section 899 far outweighs revenue the Canadian government collects from the DST, a tax his group has opposed from the outset. He said the Canadian government should pause the next DST payment scheduled for June 30 and consider getting rid of the tax in negotiations with the U.S. "The concern is that when the U.S. administration makes allegations of Canada's trade practices, they can cite the DST and that's a talking point that rings true not just for Republicans, but also Democrats, in the United States," said Pierce. "That strengthens their hand. It's not strengthening our hand at the bargaining table." Macdonald says the proposed withholding tax would hit hard. "It would have major impacts on Canadian companies, Canadian investors in the U.S — they'd be downright punitive," said Macdonald. "That would probably end up shutting down Canadian businesses in the U.S. and kicking Canadian investors out of the U.S." And the DST isn't the only Canadian tax the U.S. could consider unfair now, or in the future, said Macdonald. "I think this is the tip of the iceberg in terms of threats against Canadian corporate taxation that attempts to level the playing field between American transnationals and Canadian domestic companies that are paying corporate income taxes," he said. Macdonald said the proposed tax could also hit Canadians who don't have direct investments in U.S. securities. "This isn't only for folks with an RRSP," Macdonald said. "I mean, this could extend to the Canada Pension Plan, which is the major means by which people retire in Canada. They could potentially pay dramatically more."