Posted on: 05-03-07 17:48:48
Quote:
Originally posted by comp
Hi all,
I have a simlilar problem. My ex-company sent the pending payment to my account in Canada. It was my salary arrears.
I would like to know whether that amount is taxable? do i have to show it in the tax return?
Thanks in advance for your help.
Suresh
If that salary (for which you received the arrears) is before you landed in Canada, clearly it is the income before you had any ties with Canada and therefore will not be taxable now.
Disclaimer:
This is my opinion and I am not a tax professional. Seek professional advice if still in doubt.
Quote:
Originally posted by Kit
HI Desis,
i have received a letter from CRA asking me the source of income i showed as other income when i was unemployed and got that money form my family in india but still i showed it.
Please tell me how i should get rid of CRAand what implications will that cause in case i have reported the income in the wrong column while filing my taxes.
thanks in advance for all the answers
1. Let me be very blunt.......is it really some money that you received in India - or someone made you include that in your tax return for some other benefits (there are quite a few benefits - both in cash and in kind - by reporting income which was never an income).
2. If the money was received from India and is NOT an income, you should not be afraid at all since you can show the proof. However, you cannot say that you included it in the wrong column on tax return since this money was not be included in the tax return ab-initio - only incomes are reportable on tax returns, not gifts or loans.
3. If it was not a gift or loan from your parents - it was your money which you brought and again there is no fear of tax.
4. However, if it was your money which was an income after you landed in Canada, you have filed your taxes correctly and can show them the source.
So in case no. 2, 3 and 4 there is no fear. If it case no. 1, you have to tell us what it was, and we can easily provide you a solution!
Chandresh
-----------------------------------------------------------------
Chandresh
Advice is free – lessons I charge for!!
HI Chandresh,
just FYI the money was received from my parents and i brought it myself in cash instalments so that it wont cross 10k mark,,,i odnt know what kind of benefit some one will have by getting it included in my tax returns but as i told earlier i have reported the money in my other income column and have received a letter,,,i have replied to CRA that the money was from my parents in india,,,now am waiting to see what CRA will come back and ask from me,,,since i dont have any Draft or TT proof of money but to survive i needed that money and brought it myself in cash everytime i visited india,,,
