CRA asked me for my UK income?
#1
CRA asked me for my UK income?
So I did my first tax returns March and received my Notice of Assessment in August (I know quite efficient!) with some refund. I claimed for GST refund as well and I just had a letter from CRA asking for my UK income for the portion of time in 2013 before I moved to Canada. I moved here in May 2013.
Can someone tell me why are they asking me for this information, when I am not supposed to report or be taxed on foreign income until I became a tax resident in Canada?
Can someone tell me why are they asking me for this information, when I am not supposed to report or be taxed on foreign income until I became a tax resident in Canada?
#2
Slob
Joined: Sep 2009
Location: Ottineau
Posts: 6,342
Re: CRA asked me for my UK income?
So I did my first tax returns March and received my Notice of Assessment in August (I know quite efficient!) with some refund. I claimed for GST refund as well and I just had a letter from CRA asking for my UK income for the portion of time in 2013 before I moved to Canada. I moved here in May 2013.
Can someone tell me why are they asking me for this information, when I am not supposed to report or be taxed on foreign income until I became a tax resident in Canada?
Can someone tell me why are they asking me for this information, when I am not supposed to report or be taxed on foreign income until I became a tax resident in Canada?
Money laundering, tax evasion etc.
My Canadian return was a lot more probing this year than it was before. So was my UK one.
#3
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: CRA asked me for my UK income?
Income tax and GST are different taxes with different rules. You are correct that you do not pay income tax on foreign earnings before you become tax-resident in Canada. Your eligibility for a GST refund depends on your earnings in the previous year, regardless of source. It is intended to be a small supplement for poor people.
#6
Re: CRA asked me for my UK income?
Mind you, being an upstanding citizen it looks as if they do mine without question.
#8
Re: CRA asked me for my UK income?
If you had completed the necessary paperwork correctly when you were first employed, you would not have been "overcharged". It is perfectly possible, as an employee, to owe tax at the end of each tax year.
#10
Re: CRA asked me for my UK income?
Income tax and GST are different taxes with different rules. You are correct that you do not pay income tax on foreign earnings before you become tax-resident in Canada. Your eligibility for a GST refund depends on your earnings in the previous year, regardless of source. It is intended to be a small supplement for poor people.
#11
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: CRA asked me for my UK income?
You will get something if your combined world income (UK + Canada) is less than around $42,000 in 2013.
#12
Re: CRA asked me for my UK income?
Even a single person with net $35k gets $100 every three months. Needs to have $43k net before losing it all.
It would be nice to graduate to that level of 'poor'
I wish that new post while typing feature was back. I got interrupted before I finished and your follow on post appeared in the meantime.
Last edited by BristolUK; Sep 9th 2014 at 5:04 pm.
#13
BE Forum Addict
Joined: Jun 2009
Location: Hubley, Nova Scotia (from Scotland via Yorkshire and London)
Posts: 1,190
Re: CRA asked me for my UK income?
We're poor. We get GST/HST rebate. We declared our UK employee income for 2013 (before becoming resident in Canada). I didn't think it was a big deal, just gave them our P45 figures.
We also declare UK rental income since becoming resident - we don't get taxed on it in the UK as the amount is too low but get taxed in Canada instead.
We also declare UK rental income since becoming resident - we don't get taxed on it in the UK as the amount is too low but get taxed in Canada instead.
#14
Re: CRA asked me for my UK income?
We're poor. We get GST/HST rebate. We declared our UK employee income for 2013 (before becoming resident in Canada). I didn't think it was a big deal, just gave them our P45 figures.
We also declare UK rental income since becoming resident - we don't get taxed on it in the UK as the amount is too low but get taxed in Canada instead.
We also declare UK rental income since becoming resident - we don't get taxed on it in the UK as the amount is too low but get taxed in Canada instead.
#15
BE Forum Addict
Joined: May 2012
Location: Qc, Canada
Posts: 3,787
Re: CRA asked me for my UK income?
Does your P45 stipulate dates for the UK Financial year? If not, I'd print off the relevant page from HMRC and send it along too. They, & you, ought then to be able to prorate the annual income for the relevant months.
You might need to fill out T2209 (foreign tax credits, if you paid UK taxes).
JonboyE is much more knowledgeable than I.
S
You might need to fill out T2209 (foreign tax credits, if you paid UK taxes).
JonboyE is much more knowledgeable than I.
S
Last edited by Shirtback; Sep 10th 2014 at 3:25 am.