[russ_user]

Hello,

I'm moving to Toronto shortly for a fixed 2 year period on an intra-company transfer visa.

I'm very confused about my tax situation.

Currently I am a UK citizen resident in Ireland. I pay all my taxes here. I am past the 183 days in Ireland for this year.

Should I be declaring that I will pay tax on my worldwide earnings in Ireland for this year and not pay taxes in Toronto? Or am I better off paying taxes in the country that I am in.

Any advice appreciated. I'm concerned that if I pay no taxes in Toronto will we miss out on any benefits like OHIP.

thanks in advance

Russ

[Aviator]

Originally Posted by russ_user Hello, I'm moving to Toronto shortly for a fixed 2 year period on an intra-company transfer visa. I'm very confused about my tax situation. Currently I am a UK citizen resident in Ireland. I pay all my taxes here. I am past the 183 days in Ireland for this year. Should I be declaring that I will pay tax on my worldwide earnings in Ireland for this year and not pay taxes in Toronto? Or am I better off paying taxes in the country that I am in. Any advice appreciated. I'm concerned that if I pay no taxes in Toronto will we miss out on any benefits like OHIP. thanks in advance Russ

You don't get to choose where you pay taxes, it is where you are tax resident. You pay taxes by country and province, not city. When you arrive in Canada to live, even if it is temporary, you pay tax in Canada, your previous income prior to arriving is dealt with in the country you were tax resident before.

[russ_user]

thanks. I think I was being an idiot :-)

[gillan85]

Originally Posted by Aviator You don't get to choose where you pay taxes, it is where you are tax resident. You pay taxes by country and province, not city. When you arrive in Canada to live, even if it is temporary, you pay tax in Canada, your previous income prior to arriving is dealt with in the country you were tax resident before.

Hi Aviator

I am currently on a twp with PR application submitted...just to clarify, I arrived in January and renting my property as from April this year. My rental agent submit forms so as they deduct the tax on my behalf...With this in mind do I still have to let the UK tax office know that I am a landlord overseas. We only decided to rent our property out once we arrived in Alberta as we were hoping to sell before we left, so renting it out was a sort of after thought and happened quickly. Is there any other implications I should consider and is it better that the agent deals with the tax side of affairs as they mentioned they do this for a number of overseas clients. As I am not conversed in all the tax implications etc it just seems odd being taxed for some things in UK still and taxed here for work etc. I am also in receipt of a private pension which is paid into my UK bank account and taxed within UK. Hope doing it this way will benefit me in the long run. Any advice would be greatly appreciated.

Thank you

[JonboyE]

Originally Posted by gillan85 Hi Aviator I am currently on a twp with PR application submitted...just to clarify, I arrived in January and renting my property as from April this year. My rental agent submit forms so as they deduct the tax on my behalf...With this in mind do I still have to let the UK tax office know that I am a landlord overseas. We only decided to rent our property out once we arrived in Alberta as we were hoping to sell before we left, so renting it out was a sort of after thought and happened quickly. Is there any other implications I should consider and is it better that the agent deals with the tax side of affairs as they mentioned they do this for a number of overseas clients. As I am not conversed in all the tax implications etc it just seems odd being taxed for some things in UK still and taxed here for work etc. I am also in receipt of a private pension which is paid into my UK bank account and taxed within UK. Hope doing it this way will benefit me in the long run. Any advice would be greatly appreciated. Thank you

You are right in your gut feel.

1) Apply to join the non-resident landlords scheme in the UK. http://www.hmrc.gov.uk/international/nr-landlords.htm Once you are approved your tenant can pay you rent without deducting tax.

2) Once you have filed your first tax return in Canada you can complete this form to get your pension paid with no UK tax deducted.http://www.hmrc.gov.uk/cnr/canada-individual.pdf

Both your UK pension and rental income are taxable n Canada. You can claim a credit against Canadian taxes for the tax deducted in the UK.

[gillan85]

Thank you for your prompt reply JohnboyE. Beginning to feel a little concerned, so when do I need to complete a tax return here in Canada and is there a preferential time limit on when I do this. So just to clarify, we arrived end of January and started renting property out beginning of April. In receipt of UK pension which is paid monthly to UK bank account (tax deducted) Both of us working here in Canada.

appreciate your advice

[Aviator]

Originally Posted by gillan85 Thank you for your prompt reply JohnboyE. Beginning to feel a little concerned, so when do I need to complete a tax return here in Canada and is there a preferential time limit on when I do this. So just to clarify, we arrived end of January and started renting property out beginning of April. In receipt of UK pension which is paid monthly to UK bank account (tax deducted) Both of us working here in Canada. appreciate your advice

2012 tax return should be filed by April 30, 2013. Can be done anytime from January 1 on, as soon as you have all the information. If you have self employment income, it is due by June15, but any tax due should be paid by April 30 to avoid interest.