TinaH

Hello,

I am having difficulties with UK 'foreign income' acceptance on my CRA 2016 returns. They have accepted them for the last 9 years and this one seems to be so much more problematic than any others. I would love for someone to look over them professionally. My Canadian accountant always defaults them back to me and i really feel out of my depth here....Would really appreciate any recommendations in Alberta, or someone who would be happy to look at a return for here. I'm happy ( i think!) with our UK accountants and i think that's the 'easier' return....

Thanks in advance.

Tina

Almost Canadian

What's the issue? I have an accountant here and he defaults to me too. I simply have a spreadsheet that shows the amount I receive and the date I receive them, to which the exchange rate of the Bank of Canada on that day is applied, and the amounts totalled. I receive them tax free in the UK so no further calculation is required.

If you point us in the direction of what the issue is, we may be able to help.

TinaH

Tax is already paid 'at source/withheld' in the UK. There is a part refund of tax in the UK. They are only accepting the tax kept amount in the UK ( divided by 12 and x 9!!) as the foreign tax credit. ( this amount is GBP 1500 MORE than the tax refunded amount) PLUS they put everything at a single inflated exchange rate, compared to what the amounts came over at. I'm in a swirl. Because of the different timings of the two tax years, it makes it so difficult as i never know what my UK return will show until later all the Canadian part is submitted. I would love some guidance on whats best. CRA seem to think that they can just divide by 12 and times by 9! may be i need a tax lawyer....I'm just not sure but really need some professional help....

TinaH

I have received a call back and appointment date for next week, to meet with an accountant in Calgary. I'm hoping he will be able to help me and get to the bottom of it all for now and long term. If so, i will post his details afterwards, in case anyone else has issues down the road. I am still open to any suggestions, just incase he isn't fully au fait with UK/Can returns combined. Thanks.

Souvy

I feel your pain. The foreign income issue is a nightmare and I keep a bloody close eye on the form when my accountant does my tax return. I've been audited a couple of times because of the foreign tax credit, and been fined $1500 once because a box wasn't ticked and I was deemed to have not filed on time when I owed money.

Watch the foreign income like a hawk!

Aviator

He does not need to be. Only Canadian, filing foreign income and getting a credit for tax foreign tax paid. Does not need any knowledge of the UK return or tax system. If you should have been doing so, be sure you are filing the T1135.

Godzuke

Hello I am moving back to the UK and I am looking for a UK based accountant to handle my CRA tax liabilities and completion of the returns. Any Ideas out there?

R I C H

Why not engage with a local accountant before departing to the UK? Far more straightforward that way. We moved back to England earlier this year and just kept our Canadian based accountant to help wrap things up.

Godzuke

Thanks for that. I was thinking about that but I was hoping for someone who knew UK and Canadian Tax law. Do you have any problems filing from there?

R I C H

No problem filing from here at all. We left authorisation with our accountant to file on our behalf. He emails us all the documentation, we check it over, he submits the filing. CRA wired him refunds which he forwarded on to us.

Godzuke

Great. Thanks for your advice....Makes sense.....