Steve_

I disagree, I much much MUCH prefer the method used in Canada and the US because you get to see how much tax you owe. In the UK for example, tax on bank interest is withheld. VAT is included in the price. RTI PAYE is much more sophisticated than the payroll withholding codes used on a W-4 or a TD-1.

So the argument is that this makes your life easier. It also obscures quite cleverly how much tax you're paying.

Well I want to know how much tax I'm paying and moreover if you file a T1213 and reduce your withholding, you don't have to pay it until you have to pay it.

This argument "oh I get my refund faster if I use software" well if you owe money, that's irrelevant.

The tax people (aka the govt) work for us, we don't work for them. I want to know how much I'm paying.

Aviator

If you are going to earn below the threshold, check the 'Total income less than total claim amount' on the back of your TD1 and the employer will not withhold any tax, that way you don't give the govt a free loan for a year. Of course if you expect to owe tax, make sure you have funds available to do so.

Steve_

It's illegal to do that though (I think) because it's a misrepresentation. The legal way is to file a T1213 which requires the CRA to review your file and give approval.

MarylandNed

Pro-rate what? The question was about world income. I said "Newcomers to Canada only have to report world income for the part of the year that they were resident in Canada." Are you saying that you prorate world income even if it was earned prior to arriving in Canada? If so, that's certainly not what the link states:

http://www.cra-arc.gc.ca/tx/nnrsdnts...nwcmr-eng.html

For the part of the tax year that you WERE a resident of Canada
You have to report your world income (income from all sources, both inside and outside Canada) earned after becoming a resident of Canada for income tax purposes on your Canadian tax return.

abrxx

Hi,

I have to admit I am struggling myself here with Turbo Tax online for my first Canadian tax return. Anyone suggest any good accountants or tax preppers that can do expat returns in the Surrey/White Rock/Langley area? I figure I need a bit of hand-holding for my first return, I should know the ropes after that.

Alternatively, if anyone has UK dividend income and knows how to correctly enter the numbers (gross vs net, tax credits, etc) then please PM me.

Thanks,
Alastair

rivingtonpike

JohnboyE is has an accounting practice in White Rock I believe. Very helpful chap too.

abrxx

Thanks, I've contacted him privately.

Cheers,
Alastair

JonboyE

Thank you.

Unfortunately, there is no way I can take on a new client this late in the proceedings. In fact, I intend to focus more on corporate work that individual tax returns.

For UK dividend income add the amount received and the tax credit and report the total as dividend income then claim the tax credit as a foreign tax credit.

Siouxie

+1

abrxx

Thanks, that covers my immediate set of questions!

abrxx

Another question regarding UK rental income, I am sure there are many of us in this situation.

First of all, I have prepared a set of accounts for my rental business which run from January 2014 to December 2014. I have then figured out the profit earned over this period (rather than the April-April period as I will do in my UK tax return).

But then there is the question of avoiding double taxation. But since I haven't done my UK tax return yet, how do I make a claim for the tax paid in the UK? And anyway, the tax paid in the UK will cover a different accounting period (April-April). So what amount can I claim? I'm really confused about this one.

JonboyE

If your only taxable income in the UK for the year was your rental income then you are good to go. Take 3/12th of the total tax you paid in the UK for 2013/2014 and 9/12 for 2014/2015. Make a prudent estimate of 2014/2015 if necessary keeping in mind this in one of the CRA's favourite topics for audit. Use this as foreign tax paid.

If you had other income, such as employment income whilst still a UK resident, you will need to use a reasonable way to apportion the tax you paid for that year between the employment income and rental income after you became a Canadian tax resident. There is no set formula but use some method that is defensible. Say you had employment income between April and December of £20,000, moved to Canada on January 1, had rental profit between January and March of £1,000, and you paid a total of £2,500 for that UK tax year. You could say the tax attributable to the £1,000 rental profit was £119.05 (1000/21000*2500).

sliam37

Is there anyone in the s.surrey / wr area that you would recommend instead of yourself??