Re: Biggest mistake?
 

In Canada, as in the UK, you are taxed on your world-wide income. The only bright spot (?) is that there is a tax treaty in place between the two countries.


http://www.cra-arc.gc.ca/newsroom/al...a080228-e.html

http://www.fin.gc.ca/treaties/cndtxtreat_e.html

Re: Biggest mistake?
 

why didn't you just not show it on your canadian tax return.........?

Re: Biggest mistake?
 

Because for the first 2-3 years I was here I didn't work. No work equals no income equals no tax owing. You don't have to file a tax return for about seven years if you don't owe any tax. I didn't know then that UK income counted in Canada. I only found out when I started working and wanted to file a return.

Re: Biggest mistake?
 

It's something called jail :p

Re: Biggest mistake?
 

Quite. I was advised to delay my citizenship application until my, erm, discussions, with the CRA had been sorted.

Re: Biggest mistake?
 

I don't quite see the point of your question? I'm assuming it is an attempt to be humerous. But to answer anyway: no, not in a pub..........the real estate agent handling the house purchase, and people who live and work in this miserable town. :mad:

Re: Biggest mistake?
 

I had to file a tax return even though I'm not working and had only been in the country 4 mths. Our Man told us that he had learned the hard way a few years ago so I definately needed to file a return, it didn't cost anything and had a nought on it.

Re: Biggest mistake?
 

Ok,I googled Smalltown and there isn't such a place duh to me!:rofl: Where do you live and what's so bad?

Re: Biggest mistake?
 

I'm unsure as to how correct that is. My understanding is that, if you don't owe tax, you have seven years to file a return for any given year.

I thought I didn't, so I didn't. I did, so I should've.

Re: Biggest mistake?
 

I'm not sure either, the guy we chose to do our return just told me he got caught out a few years ago on someone's behalf, so I needed to get a return in - we just took his word for it and it didn't cost me anything.

Re: Biggest mistake?
 

According to the CRA:

Do you have to file a return?

You have to file a return for 2007 if any of the following situations apply:

* You have to pay tax for 2007.
* We sent you a request to file a return.
* You and your spouse or common-law partner elected to split pension income for 2007. See line 115 - Other pensions or superannuation, and line 129 - RRSP income, for details
* You disposed of property in 2007 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your 2006 return).
* You have to repay any of your Old Age Security or Employment Insurance benefits. See line 235 - Social benefits repayment, for details.
* You have not repaid all of the amounts you withdrew from your registered retirement savings plan (RRSP) under the Home Buyers' Plan or the Lifelong Learning Plan. For details, see Guide RC4135 - Home Buyers' Plan (HBP) or Guide RC4112 - Lifelong Learning Plan (LLP).
* You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2007, the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222 - Deduction for CPP or QPP contributions on self-employment and other earnings.

Even if none of these requirements apply, you may still want to file a return to receive certain benefits and credits. See Benefits of filing a return.

Re: Biggest mistake?
 

I'm trying to picture a situation where someone would bother to find out all those conditions, investigate them and then still not bother to file a return.

Re: Biggest mistake?
 

Please don't jump down my throat at being a spazz here, but Jon your first line says "if you have to pay tax for 2007".

Does this mean just if you are self employed like in the UK, or is this everybody that earns an income and pays tax ie like me for an employer?

If its the latter of the 2 where do I get the forms to file a return I don't want to get caught out like Souv for not doing something I didn't realise you had to do.

Re: Biggest mistake?
 

Did you work in Canada in 2007?

If so yes you should have received a T4 slip from your employer and yes you have to file a return.

You can pick up a tax package at any postal outlet.:)

Re: Biggest mistake?
 

If you are an employee you should still file a return. In fact you MUST do if you owe tax, and you won't know if you owe tax until you have completed the forms. Paper copies are available at any post office, or can be downloaded from CRA's website http://www.cra-arc.gc.ca/formspubs/t...al/menu-e.html

I can't think of any benefit from not filing a return, so urge everyone to file a tax return every year.