Posted on: 30-03-09 16:19:11
Dear friends,
Last year (July) I did my first landing(Toronto), stayed there for 45 days and returned back. This year I received my T5 slip for 500 CAD earnings from deposits. For filing taxes I need to give a local address in ON,Canada.
Fact: I do not have an address there as of now as I stayed in a temporary arrangement during my first landing used that address then for banks and all other things, however the people who stayed in that address also have moved out from there too. So what should I do in this situation, what is advised for me to do. I do not want to be a defaulter nor I have any intension of evading any tax money.
I shall be moving permanently only by the end of this year and last day for filing is 30th April.
Experts opinion and advice is seeked.
newincanada
Quote:
Originally posted by newincanada
Dear friends,
Last year (July) I did my first landing(Toronto), stayed there for 45 days and returned back. This year I received my T5 slip for 500 CAD earnings from deposits. For filing taxes I need to give a local address in ON,Canada.
Fact: I do not have an address there as of now as I stayed in a temporary arrangement during my first landing used that address then for banks and all other things, however the people who stayed in that address also have moved out from there too. So what should I do in this situation, what is advised for me to do. I do not want to be a defaulter nor I have any intention of evading any tax money.
I shall be moving permanently only by the end of this year and last day for filing is 30th April.
Experts opinion and advice is seeked.
newincanada
Do not worry as you can file your tax return at the time you move hear permanently.
Most likely you would not have to pay any taxes in Canada if you only had this interest income of $500 in Canada and your world wide income for the year 2008 after you did your first landing was not over $5000 (because you get only pro rated amount for personal deductions as you landed mid year).
So, if you did not have any income any where in the world after you left Canada after doing your first landing, you do not need to worry. Since, it would be your first return and if you have family, then you would have to apply for child tax benefits and GST etc, it is advisable to see a professional at that time.
Cheers.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Oooops. Duplicate post
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks Mr Pramod for your reply, appreciate that. Now this has made me to raise more query
1)As mentioned in your post \\\"....your world wide income for the year 2008 after you did your first landing was not over $5000 (because you get only pro rated amount for personal deductions as you landed mid year)\\\". AND also this .....\\\" if you did not have any income any where in the world after you left Canada after doing your first landing, you do not need to worry.\\\"
Fact:- My worldwide income is greater than this as I was employed and generated income more than that. Presently I am in Middle east where there is no taxation on income.
a) So can I still file the tax after returning this year which will be my permanent return to Canada? Or do I need to file now before 30th?
b) We do not have kids so no CTB in picture right? However should apply for GST isnt?
2) Still remains the question of local address in Canada
a) Just wondering how one retain a local address in Canada w/o staying there. I believe there will be many like me who did their first landing, returned after a short stay in temporary arranged accomodation as had other commitments and do return permanently later like me. How do they manage this matter of local address?
b) If the amount of income is above 5000, is there a flat rate of tax for such income as it is generated from outside Canada? or it is similar as if generated from within Canada?
newincanada
Appreciate if any gulf immigrants on this forum who have gone through this stage can also put their points how they handled this matter.
Quote:
Originally posted by newincanada
Thanks Mr Pramod for your reply, appreciate that. Now this has made me to raise more query
1)As mentioned in your post \\\"....your world wide income for the year 2008 after you did your first landing was not over $5000 (because you get only pro rated amount for personal deductions as you landed mid year)\\\". AND also this .....\\\" if you did not have any income any where in the world after you left Canada after doing your first landing, you do not need to worry.\\\"
Fact:- My worldwide income is greater than this as I was employed and generated income more than that. Presently I am in Middle east where there is no taxation on income.
a) So can I still file the tax after returning this year which will be my permanent return to Canada? Or do I need to file now before 30th?
b) We do not have kids so no CTB in picture right? However should apply for GST isnt?
2) Still remains the question of local address in Canada
a) Just wondering how one retain a local address in Canada w/o staying there. I believe there will be many like me who did their first landing, returned after a short stay in temporary arranged accommodation as had other commitments and do return permanently later like me. How do they manage this matter of local address?
b) If the amount of income is above 5000, is there a flat rate of tax for such income as it is generated from outside Canada? or it is similar as if generated from within Canada?
newincanada
Appreciate if any gulf immigrants on this forum who have gone through this stage can also put their points how they handled this matter.
Filing taxes in Canada would depend on your residency status and your residential ties with Canada, hence you have to first determine your residency status for tax purposes.
It seems from your posts that when you first landed here, you stayed with some one for 45 days, opened bank account and deposited some money. Please let us know if you applied for a driving license, SIN number and PR card etc. If you applied for a driving license and got one, it may be considered a secondary residential tie along with your bank account but it may not be considered primary residential ties and you may not have to pay any tax at all on your world wide income. However, CRA decision is always final. Please read from this http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html and you will get answers to most of your questions.
If you feel that your were not a resident for tax purposes, then do not worry about filing the return now and it can be done when you come here permanently.
To answer your last question, if you were considered a NON RESIDENT for tax purposes, then you may have to pay a flat 25% tax on the interest income you earned in Canada.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramodji, don't one require a Canadian address for one's Canadian bank accounts?
Quote:
Originally posted by viggy
Pramodji, don't one require a Canadian address for one's Canadian bank accounts?
Yes. But the OP had given his temporary address at the time of opening the account.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
