Posted on: 13-07-07 00:33:41
Hi,
I am planning to make a tentative yet serious return back to India. As a Canadian Citizen, I believe I will have to pay tax on worldwide income if i chose to remain a "resident' here for tax purposes.
Now my question is, how does the concept of taxation on worldwide income work? My impression is that I would pay tax in India, and would pay the differential-if any- in Canada.
Can anyone throw light on this issue?
Also is there any foreseeable potential benefit to be paying taxes in both countries? Like for example, if I have children in India would they be able to recieve child tax credits?
Your response will be appreciated.
On canadian return just show that your world wide income is less than 8000$
then you dont owe anytax.
Quote:
Originally posted by grasshopper
Also is there any foreseeable potential benefit to be paying taxes in both countries? Like for example, if I have children in India would they be able to recieve child tax credits?
You have to LIVE in Canada to get the child tax benefit - irrespective of whether you pay taxes to Canada or not. This is based on my own experience.
When i was in USA i got the Child tax benefits and GST benefits.. But i had to fill a special application form and provide the valid reason why i was in usa.. But its really hard to get it once you are out of country... the only way you can get these benefits is to provide cra with canadian address and you file your tax return using canadian address,
Quote:
Originally posted by tigercanada
When i was in USA i got the Child tax benefits and GST benefits.. But i had to fill a special application form and provide the valid reason why i was in usa.. But its really hard to get it once you are out of country... the only way you can get these benefits is to provide cra with canadian address and you file your tax return using canadian address,
But then you must be in the US temporarily - which is allowed. But in my case, I moved to the US. I argued a lot with CRA, but their laws are designed very carefully and I had to give it back to them.
Just for the sake of providing information to others:
The CCTB is based on your previous year's tax return and they start paying it to you from the July of next year.
I had lived in Canada for that previous year and moved to the US in Sept. of the next year. I argued that I moved to the US next year - which does not change my last year's tax return. But still they told me that the law allows you to collect it only if you live in Canada - no matter whether you lived in Canada for the current year or the previous year. Very unfair policy, but I had to live with it!!
I was in US for 4 years.
Quote:
Originally posted by tigercanada
I was in US for 4 years.
So did u get the CCTB for 4 years while in the US? Can you please let us know how?
