Coming to Canada after 3 years of PR status; world income liable to tax??

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newboyo
Member since: Nov 05

Posts: 253
Location: TO
Post ID: #PID

Posted on: 12-10-06 12:39:32

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

goldie
Member since: Mar 04

Posts: 70
Location:
Post ID: #PID

Posted on: 12-10-06 21:07:42

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

chandresh
Member since: Mar 03

Posts: 2606
Location: Toronto
Post ID: #PID

Posted on: 12-10-06 21:34:01

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.

Absolutely wrong! I do not know what made you make this statement.

A SIN and bank account and driving licence and above all OHIP card are considered good evidence of residential ties.

Chandresh

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Chandresh

Advice is free – lessons I charge for!!

goldie
Member since: Mar 04

Posts: 70
Location:
Post ID: #PID

Posted on: 12-10-06 22:31:09

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

windsor_boy
Member since: Dec 05

Posts: 67
Location:
Post ID: #PID

Posted on: 13-10-06 00:17:25

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?

dp_jain
Member since: Jan 04

Posts: 418
Location: Brampton
Post ID: #PID

Posted on: 13-10-06 06:31:53

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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Live and Let Live. Together we can make a difference.

DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
(Loans, Mortgage, Tax, Accounting, Investments)

yellowknife
Member since: Sep 04

Posts: 447
Location: Mississauga
Post ID: #PID

Posted on: 13-10-06 13:58:26

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..

Contributors: dp_jain(4) newboyo(3) Indian(3) goldie(3) chandresh(2) gforacle(1) windsor_boy(1) yellowknife(1) goldeneye(1)

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Coming to Canada after 3 years of PR status; world income liable to tax??

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