Dear All,
Situation -
-- acquired PR status in Jul 2004, spent 14 days in canada when I acquired SIN/PR/G1 license and OHIP card.
-- have been out of Canada since then, not filed a return AND NOT CLAIMED CCTB.
-- no property owned/leased, no memberships taken up.
-- bank account opened, but dormant with some funds lying in a depo account.
-- no dependants stayed back in Canada
-- am coming into Canada in Jun 2007
Query -
Am I liable to pay tax on my earnings since landing? I have been through the CRA document (221R3), but am confused with the legalese there.
Request some "plain english"guidance from members.
Rgds,
newboyo
Hi,
You are taxed on world income only after you have residential ties in Canada. In your case, since you didn't have any residential ties, you are not liable to pay taxes for past 3 years. However, don't claim CCTB as you were not living here.
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goldie
Quote:
Originally posted by goldie
Hi,
You are taxed on world income only after you have residential ties in Canada. In your case, since you didn't have any residential ties, you are not liable to pay taxes for past 3 years. However, don't claim CCTB as you were not living here.
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Chandresh
Advice is free – lessons I charge for!!
I answered this from personal experience. I landed in Canada 2 years after acquiring PR status. The income tax people accepted my explanation that I had no residential ties even though I had a bank A/C, SIN card etc. By residential ties they want proof that the concerned person or his dependants are residing in Canada. From taxation point of view one becomes a Resident if one rents/purchases property, acquires household furniture etc.
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goldie
Does it work the other way? i.e. if you pay taxes .. can you then turn around and use tax receipts as proof of stay in Canada for citizenship application? or would they still ask for passport copies etc?
Hi Goldie,
You are raelly a fortunate guy. In the eyes of tax law keeping bank a/c, driving license, OHIP etc are enough proof for substantiating residential ties with Canada. However, sometimes it depends uopn how one defends oneself. So, do not take it a rule of thumb which may hold valid in each case.
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windsor_boy, it does not work the other way. (for the most part). The chances are excellent that despite filing Canadian taxes, they will ask you for your passport when filing for citizenship..
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