Once you become a Canadian citizen and take up a job back in India, do you still have to pay the tax to the Canadian govt.?
not if you have no ties to canada like house , spouse , children etc
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Quote:
Orginally posted by Smiley
not if you have no ties to canada like house , spouse , children etc
Yes, if one does not keep any ties whatsoever such as membership to professional bodies, driving licence, health card etc. including above one is not required to file a tax return here in Canada. But, at the same time one can not get any benefits such as CCTB, GST refund etc. If such person becomes a Canadian resident in future, he could be asked to pay taxes on the income earned during his stay outside Canada.
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DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
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Location: in the heart of Mrs Saga
Posted on: 05-02-05 02:53:23
Quote:
Orginally posted by dp_jain
Quote:
Orginally posted by Smiley
not if you have no ties to canada like house , spouse , children etc
But, at the same time one can not get any benefits such as CCTB, GST refund etc. If such person becomes a Canadian resident in future, he could be asked to pay taxes on the income earned during his stay outside Canada.
DpJain
I didnt get that very well. How and why should one be asked for paying taxes when he was not a resident of Canada (and didnt have any ties, nenefits etc.) for some period? Is that an error in your post or just my lack of knowledge? Please explain.
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Deal With Reality or Reality Will Deal With You
Quote:
Orginally posted by faisal
Quote:
Orginally posted by dp_jain
Quote:
Orginally posted by Smiley
not if you have no ties to canada like house , spouse , children etc
But, at the same time one can not get any benefits such as CCTB, GST refund etc. If such person becomes a Canadian resident in future, he could be asked to pay taxes on the income earned during his stay outside Canada.
DpJain
I didnt get that very well. How and why should one be asked for paying taxes when he was not a resident of Canada (and didnt have any ties, nenefits etc.) for some period? Is that an error in your post or just my lack of knowledge? Please explain.
No there is no error in my post. It could be a debatable issue between Canadian Tax Authorities and the Tax Payer/Tax Consultants. But, there are pretty good chances that this guy would be asked to file his previous tax returns (the period he was not a Canadian Resident in the eyes of Tax Law, although he was a Canadian Citizen), reason being law can not allow somebody to play with itself. One is not allowed to get benefits at both the times - ones, the time he did not pay taxes being non-resident Canadian, although holding Canadian Passport. At the same time he wants to get benefit of being Canadian Citizen and wishes to come to Canada and live for all practical purposes.
Once, he becomes a Canadian Resident and filing his tax returns he would be asked by CRA to file his missing tax returns and than CRA has to decide whether he is required to pay taxes or not on the income earned during the period he was not a resident Canadian. More chances are that he would be asked to pay taxes and will get foreign tax credit.
As I have earlier mentioned, this could be a debatable issue. My reply is based on practical experience, consultation with some of the CGAs, tax practitioners and various rulings of CRA.
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Live and Let Live. Together we can make a difference.
DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
(Loans, Mortgage, Tax, Accounting, Investments)
Location: in the heart of Mrs Saga
Posted on: 05-02-05 10:02:11
Quote:
Orginally posted by dp_jain
No there is no error in my post. It could be a debatable issue between Canadian Tax Authorities and the Tax Payer/Tax Consultants. But, there are pretty good chances that this guy would be asked to file his previous tax returns (the period he was not a Canadian Resident in the eyes of Tax Law, although he was a Canadian Citizen), reason being law can not allow somebody to play with itself. One is not allowed to get benefits at both the times - ones, the time he did not pay taxes being non-resident Canadian, although holding Canadian Passport. At the same time he wants to get benefit of being Canadian Citizen and wishes to come to Canada and live for all practical purposes.
Once, he becomes a Canadian Resident and filing his tax returns he would be asked by CRA to file his missing tax returns and than CRA has to decide whether he is required to pay taxes or not on the income earned during the period he was not a resident Canadian. More chances are that he would be asked to pay taxes and will get foreign tax credit.
As I have earlier mentioned, this could be a debatable issue. My reply is based on practical experience, consultation with some of the CGAs, tax practitioners and various rulings of CRA.
Dp_Jain
Thanks for the explanation. I'll try to dig out more details regarding this matter.
Thats scary.
Why would anyone bother to switch off his residency and cutting ties b4 leaving Canada?
Or is this a way to discourage people from coming back after they've got their passports, so that others have a fair chance...
Taxes and Death....oh boy!
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Deal With Reality or Reality Will Deal With You
Dp_Jain
Thanks for the explanation. I'll try to dig out more details regarding this matter.
Thats scary.
Why would anyone bother to switch off his residency and cutting ties b4 leaving Canada?
Or is this a way to discourage people from coming back after they've got their passports, so that others have a fair chance...
Taxes and Death....oh boy!
yes, in here in North America taxes and death are inevitable. No escape.
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Live and Let Live. Together we can make a difference.
DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
(Loans, Mortgage, Tax, Accounting, Investments)
