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

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dp_jain
Member since: Jan 04

Posts: 418
Location: Brampton
Post ID: #PID

Posted on: 27-12-06 22:16:20

Quote:
Originally posted by Indian

Dear All

I have almost similar situation. Please guide me.

- Obtained PR cards for self, wife and one year old son in August 2006.
- Returned back to India after staying there for around 40 days.
- Getting child tax benefit every month.
- Got G-1 for self, SIN and PR Cards for all members. OHIP not applied for.
- Returning to Canada in April 2007.

I am open to disclosing my Indian income and file return.

I have two questions:

1. Do I need to pay taxes in Canada when I am already being taxed in India?

You will get foreign tax credit on your income earned in India.If foreign tax credit is less than the Canadian tax, yes, you need to pay tax here. But, due to conversion I do not thinl you will owe any tax here.

2. When I tell them that I am in India, will they stop the Child Tax Benefit?

May be or may not be, depending on answers if asked to refund. Chances are thin, as CCRA/CTB might not come to know that you were not here in Canada during this period.

Please help!!

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dp_jain
Member since: Jan 04

Posts: 418
Location: Brampton
Post ID: #PID

Posted on: 27-12-06 22:18:24

Quote:
Originally posted by gforacle

Goldie,

I had landed in 2003, and returned back this year.

Do I have to give any specific explanation why my world income should not be taxed, when I file the return for 2006.

Regards
Chetan

No , not required while filing tax return.

Indian
Member since: Nov 03

Posts: 147
Location: Vancouver
Post ID: #PID

Posted on: 28-12-06 05:45:57

Dear Mr. Jain

Thanks a lot for replying. Can you please provide more information or refer some professional who can be contacted on this.

I am planning to re-enter Canada in the last week of March 2007. I believe the return for the year 2006 should be filed by 30th April 2007, then I have one month to plan the things and show some income if I am able to earn something in one month.

Does the Canadian Tax system have similar slabs as we have in India where in upto certain limit the income is not taxable? Or is the entire income, no matter the amount, is subject to tax?

Also, since I became PR on 1st August, then am I supposed to file return for period between August and December i.e. for 4 months or for the entire year?

I dont want to lose the CCTB and GST Credits. Would it be better to file a nil return without disclosing the time spent in India. Its just a matter of 6 months which I am spending in India. After that anyways, I intend to re-enter Canada.

I shall be grateful for your valuable advice.

I you deal with income tax issues, please let me know your contact number, so that I may get in touch with you.

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There is no pleasure in having nothing to do; The fun is in having lots to do and not doing it.

dp_jain
Member since: Jan 04

Posts: 418
Location: Brampton
Post ID: #PID

Posted on: 28-12-06 08:11:08

Quote:
Originally posted by Indian

Dear Mr. Jain

Thanks a lot for replying. Can you please provide more information or refer some professional who can be contacted on this.

You can contact me. I am a qualified accountant practicing tax.

I am planning to re-enter Canada in the last week of March 2007. I believe the return for the year 2006 should be filed by 30th April 2007, then I have one month to plan the things and show some income if I am able to earn something in one month.

Income earned in Ap 2007 will not be a taxed in the year 2006. For individuals tax year runs from Jan - Dec.

Does the Canadian Tax system have similar slabs as we have in India where in upto certain limit the income is not taxable? Or is the entire income, no matter the amount, is subject to tax?

Yes, here we have the slab system.

Also, since I became PR on 1st August, then am I supposed to file return for period between August and December i.e. for 4 months or for the entire year?

Any income earned prior to become a PR is exempt. So you will be taxed on the income you earned after becoming a PR.

I dont want to lose the CCTB and GST Credits. Would it be better to file a nil return without disclosing the time spent in India. Its just a matter of 6 months which I am spending in India. After that anyways, I intend to re-enter Canada.

Even though income is NIL, to receive CCTB and GST credit tax return is required. Rest of the matters can be discussed in one to one meeting and will have answer depending upon individual situation.

I shall be grateful for your valuable advice.

I you deal with income tax issues, please let me know your contact number, so that I may get in touch with you.

You can send me a PM.

Indian
Member since: Nov 03

Posts: 147
Location: Vancouver
Post ID: #PID

Posted on: 29-12-06 05:40:19

Dear Mr. Jain

Thanks a tonn for the reply. I have sent a PM to you. Please provide your contact details so that I may meet you in April next year.

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There is no pleasure in having nothing to do; The fun is in having lots to do and not doing it.

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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