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  Canada Immigration Forum > Immigration & Citizenship > Ask Immigration Expert > Is Income Tax Filing mandatory on soft landing?
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Is Income Tax Filing mandatory on soft landing?




May I seek your guidance and help for the following matters.

My parents will land here in Canada next month as immigrants (parents and grandparents category), and will stay here around 3 weeks and then go back to their employment. They are working in a country that has Double Taxation Avoidance Agreement (DTAA) with Canada which states that the income (salaries) to be taxed in the state where it is received.

Currently, they are not sure to settle in Canada or not. Apart from PR card, they intend to keep no other ties with Canada, till the time if they decide to settle here (may be 3-4 years down the line)

My queries are:
Is it mandatory to file income tax returns even after soft landing of 3 weeks or one can file the ITR when one decides to finally settle here?
Can they bring any amount of money later when they decide to settle here without any Income tax related issue?
In a situation, when they do not file returns for all these years after landing and also do not stay here and decide not to settle here, can they gift their assets/money to their children without and IT issue?

Please accept my sincere thanks and kind regards in advance.


 
Tony Arora

Junior Desi
Member since: Jul 05
Posts: 10
Location: Toronto

Post ID: 234934 20-05-17 14:45:48
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sudesingh
Senior Desi
Member since: Jul 04




Posts: 2062
Location: Toronto


I never knew there was something like a soft landing, probably must be a hard landing too. So when you soft land, do you declare that to the immigration authorities, that you don't intend to stay more than 3 weeks. I hope you realize the implications of declaring. Just ensure that they receive their PR card prior to departure. There have been instances when people are called in for a re-take of their photograph or asked to collect their PR card in person.


Is it mandatory to file income tax returns even after soft landing of 3 weeks or one can file the ITR when one decides to finally settle here?
Technically, once you land, you get a SIN at the airport, which means you're expected to file your returns at year end. Your original entry date is your date of landing. There's no 2nd entry date.

Can they bring any amount of money later when they decide to settle here without any Income tax related issue?
Best to check with immigration authorities. If the bring in more than a certain amount (I think $10K) you're supposed to declare it, failing to do so, can result in confiscation of the money. This happened to someone I know.

In a situation, when they do not file returns for all these years after landing and also do not stay here and decide not to settle here, can they gift their assets/money to their children without and IT issue?
I'll let other's chime in on this one, but again best to check with immigration authorities.

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Post ID: 234935 20-05-17 19:51:52
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Tony Arora
Junior Desi
Member since: Jul 05




Posts: 10
Location: Toronto


I express my sincere thanks to Mr. Sude Singh answering the queries.

Regarding receiving PR card before leaving Canada, I will courier these to them once ready. A small risk of getting PR delayed due to photo or some other issue is always there. Let us hope for the best.

Regarding filing the tax in Canada, my understanding is that as my parents stay in another country for indefinite period of time and even may not settle here in Canada; further more they have not established any kind of residential ties with Canada and so will qualify as non-resident Canadians for tax purpose till the time they become residents and establish residential ties in Canada.

My research shows that Non-resident Canadians are taxed on the income from Canadian sources only and not on the worldwide income. My sense is that my parents need not even file the tax returns as neither they will have to pay any tax nor will claim any refund/benefits from Canada. I would request from all of you if you could opine on the above subject or to verify its correctness.

References:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html


 
Post ID: 234937 21-05-17 06:39:40
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Tony Arora
Junior Desi
Member since: Jul 05




Posts: 10
Location: Toronto


In continuation of above, I would like to add supplementary link. My parents do not fall into any of the conditions for filing tax. Please refer to the link below.

Do you have to file a return?
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.html


 
Last edited by: Tony Arora on 21-05-17 09:27:55
Post ID: 234938 21-05-17 09:26:05
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icame
Desi
Member since: May 17




Posts: 86
Location: Devil's Own Country


Quote:
Originally posted by Tony Arora

I express my sincere thanks to Mr. Sude Singh answering the queries.

Regarding receiving PR card before leaving Canada, I will courier these to them once ready. A small risk of getting PR delayed due to photo or some other issue is always there. Let us hope for the best.

Regarding filing the tax in Canada, my understanding is that as my parents stay in another country for indefinite period of time and even may not settle here in Canada; further more they have not established any kind of residential ties with Canada and so will qualify as non-resident Canadians for tax purpose till the time they become residents and establish residential ties in Canada.

My research shows that Non-resident Canadians are taxed on the income from Canadian sources only and not on the worldwide income. My sense is that my parents need not even file the tax returns as neither they will have to pay any tax nor will claim any refund/benefits from Canada. I would request from all of you if you could opine on the above subject or to verify its correctness.

References:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html</font>


Yup, no residential ties, no tax return has to be filed by them.

Don't apply for OHIP card or Drivers License or Credit Card or even a bank account, when they are here, so they won't have any residential ties to Canada.

PR card will be given to them, by mail later on. That's all you need to re enter Canada.

Not sure if they are automatically enrolled and an application for SIN is automatically made, when they land at the airport.

In case its not automatically applied, don't even bother applying for the SIN, even less residential ties to Canada.

Anyways your parent's won't like it here, like most immigrant parent's. They have a much better social and cultural life back home.

They will find Canada to be a dull, boring, cold, & socially and culturally backward country. They will even face racism as old folks are deemed as a burden on the Canadian healthcare system and so called social programs like OAS, GIS.

They won't have the same personal and financial freedom as back home. They will be bored to death in this country and the cold bitter winter's will surely depress them. Their only solace will be meeting their kids and grand children.



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Last edited by: icame on 21-05-17 13:10:45
Post ID: 234940 21-05-17 13:08:54
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icame
Desi
Member since: May 17




Posts: 86
Location: Devil's Own Country


Quote:
Originally posted by Tony Arora

May I seek your guidance and help for the following matters.

My parents will land here in Canada next month as immigrants (parents and grandparents category), and will stay here around 3 weeks and then go back to their employment. They are working in a country that has Double Taxation Avoidance Agreement (DTAA) with Canada which states that the income (salaries) to be taxed in the state where it is received.

Currently, they are not sure to settle in Canada or not. Apart from PR card, they intend to keep no other ties with Canada, till the time if they decide to settle here (may be 3-4 years down the line)

My queries are:
Is it mandatory to file income tax returns even after soft landing of 3 weeks or one can file the ITR when one decides to finally settle here?
Can they bring any amount of money later when they decide to settle here without any Income tax related issue?
In a situation, when they do not file returns for all these years after landing and also do not stay here and decide not to settle here, can they gift their assets/money to their children without and IT issue?

Please accept my sincere thanks and kind regards in advance.



Canada has NO Gift tax and NO Inheritance tax. Yes they can gift or you can inherit any assets or money from them, as long as the proper documentation and papers is there.

Just make sure when the money comes here its sent as a Gift or Inheritance from India. Usually you need a CA clearance in India and IT clearance from India, when you remit big amounts abroad.




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I am a Mens and not a Womens.

 
Post ID: 234942 21-05-17 13:18:09
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Tony Arora
Junior Desi
Member since: Jul 05




Posts: 10
Location: Toronto


Thanks a million dear ICAME for covering answer to all the queries in a concise and clear way.

Just one more query. Will my parents surrender of their PR impact their chances of getting tourist or super visa later.

Thanking all in advance.


 
Post ID: 234943 21-05-17 13:33:39
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Full House
Senior Desi
Member since: Oct 12




Posts: 2253
Location:

Hope this helps.

You have all the answers from prior posters. Plus you have the two links too, which provide you with clarifications. So, you are right on top of it.

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html&lt;/font>

Requesting for a PR seems to be the only link and their desire to land and stay with in Canada is the next reason that gets weighed in their entry into Canada.

NOT Having a SIN card disables the link to CRA and their tax system. So, they will not be asked to pay any tax here in Canada. Just as one of the poster mentions here, if the issue of a NUMBER and and a SIN Card is not automatic, then that issue is also mute. So, no need to worry there too.

You also seem to know the DTAA rules on taxation. So, if they are paying taxes elsewhere and account for their income and the taxes called for on such an income, then they are very safe not even approaching that issue with in Canada.

Only link currently any one has is the ADDRESS at which they will get their PR Cards. So, watch out for any mail that is addressed to them to that address.

Now to the final one..: Having landed here they can leave their entry open for a period of FIVE Good years after the date of landing here. That gives them the free entry without any queries, as long as they have their PR Cards on them and while booking a ticket for their flight or at the Borders for their crosing.

The surrendering of their PR status enters the picture, at a period, at the end of Five years and you can bring that issue to the forefront at that time. Also that currently will be a long and drawn out paper work. The rules do change and so does the process. Currently it is a very murky process. You have the choice so decide upon the route.

Until such time that your Parents are ready to surrender, enjoy the PR Status.

Good Luck.

Hope this answers your query.


FH.

LMC CC MX.

---
Quote:
Originally posted by Tony Arora

May I seek your guidance and help for the following matters.

My parents will land here in Canada next month as immigrants (parents and grandparents category), and will stay here around 3 weeks and then go back to their employment. They are working in a country that has Double Taxation Avoidance Agreement (DTAA) with Canada which states that the income (salaries) to be taxed in the state where it is received.

Currently, they are not sure to settle in Canada or not. Apart from PR card, they intend to keep no other ties with Canada, till the time if they decide to settle here (may be 3-4 years down the line)

My queries are:
Is it mandatory to file income tax returns even after soft landing of 3 weeks or one can file the ITR when one decides to finally settle here?
Can they bring any amount of money later when they decide to settle here without any Income tax related issue?
In a situation, when they do not file returns for all these years after landing and also do not stay here and decide not to settle here, can they gift their assets/money to their children without and IT issue?

Please accept my sincere thanks and kind regards in advance.





 
Post ID: 234946 21-05-17 14:12:42
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Tony Arora
Junior Desi
Member since: Jul 05




Posts: 10
Location: Toronto


Thank you very much Mr. Full House.
Your detailed response definitely helps and I truly appreciate your excellent narrative way of answering.
Thank you once again.


 
Post ID: 234948 21-05-17 14:26:43
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icame
Desi
Member since: May 17




Posts: 86
Location: Devil's Own Country


Quote:
Originally posted by Tony Arora

Thanks a million dear ICAME for covering answer to all the queries in a concise and clear way.

Just one more query. Will my parents surrender of their PR impact their chances of getting tourist or super visa later.

Thanking all in advance.



No they won't have any issues as long as the PR is renounced and surrendered properly.

Even the expired PR has to be surrendered and renounced before they can apply for a super visa or visitor visa. The embassy will try hard and ask you to keep the PR and renew it, but insist on surrendering it. See thread below

http://www.canadavisa.com/canada-immigration-discussion-board/threads/applying-for-visit-visa-after-pr-card-has-expired.125315/

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I am a Mens and not a Womens.

 
Last edited by: icame on 21-05-17 23:07:00
Post ID: 234950 21-05-17 23:06:22
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Contributors:
Full House(1)  icame(6)  sudesingh(2)  Tony Arora(7)  
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