Just a couple of quickies.

1. When is the tax year in Canada? Does it run April to March like the UK?

2. If we move to Canada in the middle of a tax year and then submit our tax returns at the end of the tax year, will we have to pay tax on our income for the whole tax year, or just that part of the tax years income that was earned when we were actually living in Canada.

Is that clear....it is confusing me and I wrote it. I hope someone can understand it and offer some advice.

Thanks

For personal taxes it is the calendar year. Tax returns are filed in April but if you have a regular job and pay tax all year nothing especially exciting happens with the tax return.


The Canadian bit only. Again, assuming a regular job and tax payments each payday there will probably be some small amount to pay or collect the next April depending on how your employers payroll system works and how it copes with part years worked but not a huge amount.

Thank you

So we arrived in August, don`t have jobs as yet. We don`t need to worry about doing taxes until April correct.

Fill in RC151 and T1 General for 2007 (after the end of the year) and send them in before the end of April.

A nice lady at the international tax office once told me that I didn't have to fill out all the entries in the T1, just put a 0 in each of the following entries (these were valid on T1 2005):-
101
150
236
260
435
485
-(obviously this is only valid if you have no taxable income for the year)

Don't forget to check the box indicating you want to apply for GST credit.

If you are due a refund it is always better to submit your return early otherwise you are just giving the government an extended interest free loan. Most institutions, like banks and employers, issue their tax information notices (T-slips) at the end of February so you have March and April to file your tax return.

You don't HAVE to file a return if you don't owe any tax, but you should always do so. Many benefits are means tested (like the GST credit mentioned by the previous poster) and you will not get them if you do not file a tax return. The way the deductions work, many, many people end up with a refund each year.

Your RRSP contribution limit is calculated on your income tax assessment so if you don't file a return you will miss out on the best tax saving option available to Canadians. Also, your tax assessment works as your proof of income when you are applying for credit - another good reason to file a tax return every year