Biggest mistake?
#16
BE Forum Addict
Joined: Aug 2007
Posts: 1,782
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
http://www.cra-arc.gc.ca/newsroom/al...a080228-e.html
http://www.fin.gc.ca/treaties/cndtxtreat_e.html
Last edited by johnh009; Mar 27th 2008 at 1:20 pm.
#17
Just Joined
Joined: Jul 2007
Posts: 29
Re: Biggest mistake?
Yes and no. It was UK income and had some tax taken at source by the Inland Revenue. That's OK because it goes down as a credit on the Canadian tax return. You're not taxed twice on the same chunk of money. What I didn't know was that UK income had to be declared on my Canadian tax return and that the amount of tax already paid in the UK (about 10%) wasn't enough. I was in arrears in Canada and got smacked for it.
#18
Joined: Apr 2005
Posts: 9,606
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.
#21
itchy feet again!
Thread Starter
Joined: Sep 2007
Location: Ex-Canada: now rural West Sussex.
Posts: 1,013
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.
#22
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.
#23
Re: Biggest mistake?
Ok,I googled Smalltown and there isn't such a place duh to me! Where do you live and what's so bad?
#24
Joined: Apr 2005
Posts: 9,606
Re: Biggest mistake?
I thought I didn't, so I didn't. I did, so I should've.
#25
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.
#26
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
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.
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.
#27
Joined: Apr 2005
Posts: 9,606
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.
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.
#28
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.
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.
#29
Joined: Jul 2005
Posts: 15,883
Re: Biggest mistake?
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.
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.
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.
#30
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
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.
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.
I can't think of any benefit from not filing a return, so urge everyone to file a tax return every year.