Posted on: 01-04-09 05:52:17
My ties in Canada
1) PR Card - Yes, both (Both= me and my wife)
2) SIN Card -Yes, both
3) Driving licence - Yes, both, but only G1
4) Credit Card - Yes, Both; We receive all statements etc on our non Canadian address where we are staying at present
5) Mobile Connection - Yes only one which is on spouse name. (We have opted for e-bill, so no statements in post,though it holds the same temporary address we gave then at time of taking connection)
6) Bank- Yes, Joint account, also GIC deposit which has earned interest around $450. Bank has our temporary address as well our non Canadian address where we are staying at present and receive monthly bank statements on the non Canadian address regularly
7) OHIP - NO (Did not apply as we were to return)
8) No other purchase of asset or contractual services.
9) Both returned back after 45 days
So based on the above status does this make me having only secondry ties and not to pay taxes on my world income or do I become non resident for tax purposes and pay 25% flat??.. this part is little confusing for me
Please go through these publications from CRA.
http://www.cra-arc.gc.ca/E/pub/tg/t4055/t4055-08e.pdf
This version is only available electronically.
http://www.cra-arc.gc.ca/E/pub/tp/it513r/it513r-e.pdf
You, sir, just opened up the Pandora's Box.
For your six months of the year's stay you and your wife will qualify for the personal amounts of about $4800.00 each. She can take the $500 interest income from the T5 for her income, (Hoping that she has no income) and you can claim up to a sum of $4800 for yourself and pay the taxes on the sum above that, one that you earned while you were there. The tax rate is in the Federal Schedule #1 and it says that for the year 2008 it is 15% up to an income of $37,885.00 or less. That is just federal.
You can find some of the tax filing software on the web and you only pay if you want it printed or e-filed. You can also write and ask the CRA to mail you a set or two for both of you, to an address where ever you both are currently living.
Here is a list of the tax software.
Tax nic
Tax Prep
Profile
Cantax
Ufile
Quicktax
Etc.,
It is a small price to pay. But, pay you must.
Hope this helps you a little.
Freddie.
Just ignore it dude.. nobody cares about tax on 500$ income..
Even if there is a audit , which is higly unlikely.. they will just pardon u understanding the circumstances..
If u still want to file taxes.. u dont need a local address u can give ur international address..
Local address is not mandatory for a tax return.If there are any issues CRA will communicate to u using ur international address.
Quote:
Originally posted by newincanada
My ties in Canada
1) PR Card - Yes, both (Both= me and my wife)
2) SIN Card -Yes, both
3) Driving licence - Yes, both, but only G1
4) Credit Card - Yes, Both; We receive all statements etc on our non Canadian address where we are staying at present
5) Mobile Connection - Yes only one which is on spouse name. (We have opted for e-bill, so no statements in post,though it holds the same temporary address we gave then at time of taking connection)
6) Bank- Yes, Joint account, also GIC deposit which has earned interest around $450. Bank has our temporary address as well our non Canadian address where we are staying at present and receive monthly bank statements on the non Canadian address regularly
7) OHIP - NO (Did not apply as we were to return)
8) No other purchase of asset or contractual services.
9) Both returned back after 45 days
So based on the above status does this make me having only secondry ties and not to pay taxes on my world income or do I become non resident for tax purposes and pay 25% flat??.. this part is little confusing for me
Quote:
Originally posted by newincanada
My ties in Canada
1) PR Card - Yes, both (Both= me and my wife)
2) SIN Card -Yes, both
3) Driving licence - Yes, both, but only G1
4) Credit Card - Yes, Both; We receive all statements etc on our non Canadian address where we are staying at present
5) Mobile Connection - Yes only one which is on spouse name. (We have opted for e-bill, so no statements in post,though it holds the same temporary address we gave then at time of taking connection)
6) Bank- Yes, Joint account, also GIC deposit which has earned interest around $450. Bank has our temporary address as well our non Canadian address where we are staying at present and receive monthly bank statements on the non Canadian address regularly
7) OHIP - NO (Did not apply as we were to return)
8) No other purchase of asset or contractual services.
9) Both returned back after 45 days
So based on the above status does this make me having only secondary ties and not to pay taxes on my world income or do I become non resident for tax purposes and pay 25% flat??.. this part is little confusing for me
I would again ask you to take it easy and read from the link I provided in my earlier post. You can do your tax returns when you come here permanently and as it seems you did not have any primary residential ties, you would most likely be considered Non Resident for tax purpose and would not have any liability for paying taxes on your world wide income. At the most you can tell your bank to change your address in their records to your ME address and ask them to consider you Non Resident. In that case they will automatically withhold 25% tax amount from the interest income and you are fine and do not have to file tax return.
So, once again, DO NOT get unduly worried now and resolve this when you come back permanently.
Cheers.
-----------------------------------------------------------------
Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Dear Pramod and Freddie,
Thanks for your time and replying to the precise points I raised. I am very much convinced and now I have more clarity on the subject. I shall go through all the links also which are provided by both of you, which is explaining all in details, would go through it with concentration during the weekend as I am logging in here on desi only during my break hours and before going to bed.
If I still have any queries I shall raise it.
Thanks again Pramod Sir for showing me the comforting zone which has made me a lot at ease. My intension was not to be defaulter and nor to evade any taxes applicable, just wanted to know what is the applicable status to my case and actions required from myside within the time frame.
Thanks again to all for your time and replies. Shall get back to this discussion soon, till then wish you all good luck in what profession/business you are into.
Have profits and a nice day.
Cheers!
newincanada
