Originally Posted by JonboyE

The first general rule is that expenses paid by an employer are not taxable IF the primary beneficiary is the employer. For example, if a construction company sends an employee on a worksite safety training course this is not a taxable benefit to the employee. If they paid for a course to learn about the development of plainsong in medieval monasteries it would be. If you are moving to Canada at your employer's request then reimbursement of reasonable moving expenses should not be a taxable benefit to you.

The second general rule is that employer payment of specific expenses is not a taxable benefit but an expense allowance is. If you have to stay overnight on a business trip and your employer gives you $500 and says, "find a nice hotel and have a good evening," the $500 is a taxable benefit. If your employer gives you a T2200 at the end of the year saying you were required to pay for your hotel you can claim the cost of the hotel as an employment expense on your tax return.

If your employer tells you to hand in the receipt from the hotel and the change from the $500 as soon as you get back to work this is payment of a specific expense and is not a taxable benefit (as long as the cost of the hotel is reasonable in the context of the trip).

The mistake here seems to be that your employer has treated this as an allowance and will be expecting you to claim back your expenses (and a refund of the tax deducted) when you file your tax return. What they haven't taken into account is what has already been said above that, unless you are a student, you can only claim moving expenses on your tax return if you were a Canadian tax-resident both before and after the move.

This can be undone with a bit goodwill on the employer's part. You need to repay the allowance (and they reverse it in their payroll records) and submit an expense claim for them to reimburse.

BE's fee for this advice is 300 guineas which you can deduct from PWC's bill.

Originally Posted by Goodbhoy

Thanks for your help and advice.

I think the highlighted phrase may be applicable to me.
I am certainly going to raise the subject tomorrow at work so as it is made clear.

The job I do was advertised in Canada and nobody applied.
I then approached the company saying that I would be interested providing expenses were met etc.

So I suppose I am kind of covered but I need to make this 'kind of covered' spin around and end up with $8000 in my bank account.

Originally Posted by Aviator

The highlighted phrase may be applicable to your circumstance, however what matters more is this bit



Unless you were a returning Canadian tax resident, none of it applies to you.

When the move you want to claim for occurred, had you lived in Canada that and were just coming back?

Originally Posted by Goodbhoy

Thanks.

I will raise the question tomorrow.

Originally Posted by Aviator

You don't know if you lived in Canada before this move?

Originally Posted by Zoe Bell

Moving within Canada is
Moving TO Canada isn't

This comes up from time to time. Some people get away with claiming it BUT your initial move to canada isn't eligible for tax relief

Originally Posted by Goodbhoy

I am Scottish and have never lived in Canada before.

Originally Posted by Goodbhoy

OK, I have my situation sorted and thought I would post back.

It turns out that my employer has not agreed to paying my relocation fees and I cannot claim tax back etc

My employer has given me a payment of $28k and taxed me on this, deducting $8000.
The sum appears on my wage slip.

I do not need to declare this sum (as it is already declared by my employer and taxed) to the tax department on my tax returns or provide any receipts to the company or tax authorities.

Originally Posted by Aviator

If this was treated as a payroll payment, it will be included on your T4 payroll summary at the end of the year tax year in which it was paid and must be reported at part of your income. If it were treated as an expense reimbursement, paying you back what you paid out, it would not need to be reported, but it seems it has not. In Canada everyone who has income must file a tax return, if you owe tax, the penalties can be high in some circumstances for failing to do so as can being late. The 2014 tax filing deadline is April 30 2015 and June 15 if you had self employed income (tax is still due by April 30 though to avoid interest).

As it seems it came out as payroll, this may impact your marginal tax rate. Unfortunately you won't know how until you get your tax assessment.

Tax deducted by an employer is not the end of it in Canada, some folks get a tax bill (I prefer this way), some get a refund. Depends what you claimed on your TD1s, any other income and possible deductible expenses if any.

Don't make the mistake of assuming you don't need to report something, CRA will know how much you have been paid, they get a copy of your T4 sent in by your employer. If in doubt see an accountant.

Originally Posted by Goodbhoy

I have only been here a month and had 2 pay packets so far so not sure if I will get any forms or tax returns this year.

My employer says it will be included in my T4 at the end of the year so is already declared.

Originally Posted by Aviator

That's not how it works. You get a T4, you submit a tax return based on that T4 and when you get your notice of assessment you will find out if you owe more tax or get a refund. Employers deduct tax, CPP and EI on your behalf and submit it to the govt. They have no way to know if this is the correct amount.

If this is your first calendar year here, you will need to file taxes in 2016

Originally Posted by Goodbhoy

I have only been here a month and had 2 pay packets so far so not sure if I will get any forms or tax returns this year.

My employer says it will be included in my T4 at the end of the year so is already declared.