Piff Poff

I've only had a FB account since my Mum died 4 years ago, there was family shit going down...My sister only signed up 2 months ago when my Niece had a baby lol

Piff Poff

Can you not go into the CRA in Red Deer and ask them what they actually need?

GermanytoCanada

If I understand correctly, the issue is that the acquisition value of the property for CGT is different for the UK and Canadian calculations because the UK uses the value when you bought the property and the Canadian calculation is based the value at the time of moving to Canada.
I would submit proof of the value of the property at the time of moving together with proof of the sale price to enable them to verify the Canadian tax due. If you send the UK tax documentation too, I would mention the different acquisition value used for the UK calculation in your cover letter to avoid any confusion. HTH.

JonboyE

I am confused. If you sold the flat before moving to Canada why are you showing this on your Canadian tax return?

The CRA want to see proof that the foreign tax paid is your actual foreign tax liability. This essentially means they want to see both of your UK tax returns that cover the calendar year they are auditing and HMRC's Assessment of these returns. They also want you to show your calculation of the tax credit you have claimed in Canada (including form T2209 and T2036 if relevant).

Fred Louise

Yes I'll call them this week I think - the more I read the more confused I get. I'm just worried that they will not be helpful or worse, think I'm doing something wrong. Quite stressed.

Fred Louise

Thanks, this helps a lot

Fred Louise

It settled when I was here, so there was still a nominal difference but regardless, I'm not showing it on the Canadian tax return, the issue is the amount of tax I paid overseas is HIGHER than the foreign tax credit I am claiming, Because I paid tax on the capital gain BUT didn't claim that amount (given it's not relevant on my Canadian return).

How will they reconcile it?

JonboyE

You need to show them how you calculated the amount you claimed.

Fred Louise

I just saw your signature :O

Thanks JonboyE - I will submit it then with a paid worksheet (I thought this might be the case but have been stressing like crazy)

I'll call the CRA later today too

Fred Louise

Thanks for this suggestion, PP. I called them and after a couple of tries, got through to someone who was very helpful.

Said I just had to do a worksheet with all the workings, and if there wasn't enough, they would simply ask me for more.

I asked if they could advise me on the accountant stuff, and they said it wasn't necessary as long as I put together my worksheet.

Piff Poff

That's excellent. I do find in most cases, helpfulness from official type people.

Fred Louise

Thanks Piff Poff - the thing was I rang a few times and got so many different answers, but finally found a helpful chap. I'm still nervous but just going to give what I have