Dear friends,
In my recent tax return, i attached a cover letter mentioning my in and out status of Canada for the year 2014. Also i declared my world wide income for the year 2014 which my mistake has been put into a column which is meant for Canadian income. CRA has calculated my benefits and taxes accordingly. Upon calling them and explaining, they say that since the income mentioned is under Canadian income column so they had no option but to do the calculations accordingly. Now to prove that i was outside of Canada, they want me to submit a letter alongwith the proof. I have no clue what proof should i submit. Immigration never puts any stamp on our passports at Pearson. However i do have Saudi in and out stamps but again, they dont say that i was leaving for Canada or i have arrived back to Saudi from Canada. Please suggest how can i satisfy CRA on the issue.
Thanks
Can I suggest that you consult with your tax consultant to seek their advise (if you haven't already done so), since they were the ones that submitted your tax return.
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SS
Reiki Grand Master
SS, they were here only for volunteer tax clinics, these are set up for a month or so. Also they dont keep any record of the clients whose tax returns they help in submitting. I just want to know if there is any way we can get such in / out record from any government agency, like air port immigration or...!!
Location: God's own country
Posted on: 18-08-15 02:07:59
To prove that you were out of Canada.
Flight ticket or itenary or boarding pass.
Any thing that you purchased out of Canada which has a dated bill.
CRA is not very specific about the proof (like citizenship) and so you should be OK.
Murali
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I am a Gents and not a Ladies.
I am a bit confused - so please clarify so that I can try and help. If you have already declared your world wide income, and you were a Canadian resident, what is the difference in being in Canada and out of Canada?
Unless of course you mean you included your income before landing into Canada as Canadian income for 2014.
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Chandresh
Advice is free – lessons I charge for!!
Location: Western Hemisphere
Posted on: 18-08-15 15:23:41
Agree with Chandresh.
Your being in and out of the country has absolutely no bearing if you are a Canadian tax resident (which is different from immigration based resident or physically present resident).
1. Did you live in Canada in 2014 on a legal status, other than as a visitor? If so, you may be a tax resident.
2. If you simply visited Canada on a tourist visa, I am wondering why you declared yourself as a tax resident by means of filing taxes.
3. If you are a Canadian tax resident, it makes no difference whether the income is from Canada or from outside. Both are taxed under the same tax brackets (income, capital gains, dividends have their own tax %). The only difference is income from outside is shown on line 104 under "Other employment income."
If you did not live in Canada in 2014, you might be able to explain by showing under what status you entered Canada "in and out" and thereby have CRA rescind the tax filing altogether (no idea if there is a provision to do that). You may have to have an extensive discussion with someone at CRA.
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Dimple2001
Wheras your being in and out may have less relevance , but if you have FINALLY landed after a part of the year , you are tax resident for that period only.
For eg : A person lands in Jan and returns to his working country after staying a week or so .
In November , he lands finally with bags and baggage and finally makes Canada his home...
Is he a tax resident in Canada for the whole year or only 2/12 of the year ??
( In my case I landed in the year X , went back and then finally landed in the year X+3 (Aug) and was considered a tax resident only for 5/12 of the year X+3 .. I was advised not to declare my world income before Aug X+3 )
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Fido.
