Reclaiming Tax
Mar 21st 2015, 9:40 pm
#1
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Joined: Sep 2014
Posts: 76
Reclaiming Tax
I recently moved to Toronto from the UK.
During the negotiations for my job I totted up all my relocation expenses (I was very fair and was not out to make any kind of profit) which included shipping, 3 month car hire, first and last months rent, hotel stay, flights, pet transportation etc
I equated this to be around $28000.
My employer agreed and I made all the necessary arrangements.
I put most of the fees on various UK credit cards.
A couple of days before my move, my employer made a payment to me of $28000 less $8000 tax into my Canadian account giving me only $20000. Not enough.
Most of my expenses are tax deductible and I know I will be able to claim the $8000 back (well the majority of it) at the end of the tax year when tax returns need to be submitted(I think).
However, this $8000 deduction has left me short and I need to pick up the shortfall in the meantime.
Is there any way of claiming the tax back on these expenses early?
I currently have a rental car and need to purchase my own and have no funds left available to me.
I would not have agreed to this deduction if I had known in advance but by the time it was inflicted on me, most of the expenses had already been put on to my personal UK credit cards so I couldn't back out or I would still be liable for the expenses.
During the negotiations for my job I totted up all my relocation expenses (I was very fair and was not out to make any kind of profit) which included shipping, 3 month car hire, first and last months rent, hotel stay, flights, pet transportation etc
I equated this to be around $28000.
My employer agreed and I made all the necessary arrangements.
I put most of the fees on various UK credit cards.
A couple of days before my move, my employer made a payment to me of $28000 less $8000 tax into my Canadian account giving me only $20000. Not enough.
Most of my expenses are tax deductible and I know I will be able to claim the $8000 back (well the majority of it) at the end of the tax year when tax returns need to be submitted(I think).
However, this $8000 deduction has left me short and I need to pick up the shortfall in the meantime.
Is there any way of claiming the tax back on these expenses early?
I currently have a rental car and need to purchase my own and have no funds left available to me.
I would not have agreed to this deduction if I had known in advance but by the time it was inflicted on me, most of the expenses had already been put on to my personal UK credit cards so I couldn't back out or I would still be liable for the expenses.
Mar 21st 2015, 10:09 pm
#2
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Posts: 11,682
Re: Reclaiming Tax
...
A couple of days before my move, my employer made a payment to me of $28000 less $8000 tax into my Canadian account giving me only $20000. Not enough.
Most of my expenses are tax deductible and I know I will be able to claim the $8000 back (well the majority of it) at the end of the tax year when tax returns need to be submitted(I think). ...
A couple of days before my move, my employer made a payment to me of $28000 less $8000 tax into my Canadian account giving me only $20000. Not enough.
Most of my expenses are tax deductible and I know I will be able to claim the $8000 back (well the majority of it) at the end of the tax year when tax returns need to be submitted(I think). ...
Mar 21st 2015, 10:44 pm
#4
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Joined: Jul 2014
Posts: 1,232
Re: Reclaiming Tax
Your employer gave you a bum steer.
Relocation expenses for UK to CANADA relocation move are not tax deductible. All such relocation costs must be paid by yourself or your employer. The taxpayers of Canada don't want/need you here that badly.
Relocation expenses for UK to CANADA relocation move are not tax deductible. All such relocation costs must be paid by yourself or your employer. The taxpayers of Canada don't want/need you here that badly.
Mar 21st 2015, 11:03 pm
#5
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Location: Sarnia, Ontario
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Re: Reclaiming Tax
I think that " moving expenses" are tax deductible and indeed it was a major issue for us when we moved to Canada. My OH is away at present but I will talk to him when he returns as he will know more about it. However, this is from the CRA website:
"Did you move to Canada?
Provided you met all conditions and requirements (read "Who can claim moving expenses?"), you can claim eligible expenses for a move to Canada if you are a full-time student (including a co-operative student), or a factual or deemed resident of Canada."
"Did you move to Canada?
Provided you met all conditions and requirements (read "Who can claim moving expenses?"), you can claim eligible expenses for a move to Canada if you are a full-time student (including a co-operative student), or a factual or deemed resident of Canada."
Mar 21st 2015, 11:41 pm
#6
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Re: Reclaiming Tax
They also agree that the fees are tax deductible.
However, I have not had a response from anyone as to how I am able to claim this deduction back before the end of the tax year.
Mar 21st 2015, 11:43 pm
#7
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Location: TORONTO- yay!!!
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Re: Reclaiming Tax
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
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
Mar 21st 2015, 11:49 pm
#8
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Joined: May 2010
Location: Mill Bay, Vancouver Island
Posts: 3,232
Re: Reclaiming Tax
I also have PWC (Price, Waterhouse, Cooper) dealing with wrapping up my tax affairs in the UK as well as dealing with them in Canada (put in place by my company) during the transition period.
They also agree that the fees are tax deductible.
However, I have not had a response from anyone as to how I am able to claim this deduction back before the end of the tax year.
They also agree that the fees are tax deductible.
However, I have not had a response from anyone as to how I am able to claim this deduction back before the end of the tax year.
Mar 21st 2015, 11:51 pm
#9
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Re: Reclaiming Tax
It may be tax relief from the UK portion, I am not sure.
Mar 21st 2015, 11:53 pm
#10
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Mar 21st 2015, 11:55 pm
#12
"In cruce vincam"
Joined: May 2010
Location: Mill Bay, Vancouver Island
Posts: 3,232
Re: Reclaiming Tax
I think that " moving expenses" are tax deductible and indeed it was a major issue for us when we moved to Canada. My OH is away at present but I will talk to him when he returns as he will know more about it. However, this is from the CRA website:
"Did you move to Canada?
Provided you met all conditions and requirements (read "Who can claim moving expenses?"), you can claim eligible expenses for a move to Canada if you are a full-time student (including a co-operative student), or a factual or deemed resident of Canada."
"Did you move to Canada?
Provided you met all conditions and requirements (read "Who can claim moving expenses?"), you can claim eligible expenses for a move to Canada if you are a full-time student (including a co-operative student), or a factual or deemed resident of Canada."
Mar 21st 2015, 11:56 pm
#13
"In cruce vincam"
Joined: May 2010
Location: Mill Bay, Vancouver Island
Posts: 3,232
Re: Reclaiming Tax
We looked into this when we moved to Canada and were given a written response from CRA that we weren't eligible for tax relief on our moving expenses.
Mar 21st 2015, 11:59 pm
#14
Joined: Sep 2008
Posts: 12,830
Re: Reclaiming Tax
Moving to Canada is not a deductible moving expense for new immigrants or TWP holders. The disqualifying factor is not being a deemed or factual resident of Canada or full time student when they make the move. Immigrants make the move to become residents.
People moving to Canada, who are already deemed or factual residents of Canada or students coming to Canada at the time of making the move can claim expenses.
Even if one has come, landed as a PR, gone back and then moved, won't cut it, as this would not qualify as a deemed or factual resident.
A move is when the person moves, so getting PR, the organising your belongings to come over won't work either, as you moved when you came to Canada, not when your belongings move.
Moving expenses can be claimed for people moving back to Canada for work, who previously had ties and retained those ties. Retirees just moving home cannot claim them either.
http://www.cra-arc.gc.ca/tx/ndvdls/t...19/mv-eng.html
People moving to Canada, who are already deemed or factual residents of Canada or students coming to Canada at the time of making the move can claim expenses.
Even if one has come, landed as a PR, gone back and then moved, won't cut it, as this would not qualify as a deemed or factual resident.
A move is when the person moves, so getting PR, the organising your belongings to come over won't work either, as you moved when you came to Canada, not when your belongings move.
Moving expenses can be claimed for people moving back to Canada for work, who previously had ties and retained those ties. Retirees just moving home cannot claim them either.
http://www.cra-arc.gc.ca/tx/ndvdls/t...19/mv-eng.html
Mar 22nd 2015, 12:06 am
#15
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Joined: Sep 2014
Posts: 76
Re: Reclaiming Tax
Moving to Canada is not a deductible moving expense for new immigrants or TWP holders. The disqualifying factor is not being a deemed or factual resident of Canada or full time student when they make the move. Immigrants make the move to become residents.
People moving to Canada, who are already deemed or factual residents of Canada or students coming to Canada at the time of making the move can claim expenses.
Even if one has come, landed as a PR, gone back and then moved, won't cut it, as this would not qualify as a deemed or factual resident.
A move is when the person moves, so getting PR, the organising your belongings to come over won't work either, as you moved when you came to Canada, not when your belongings move.
Moving expenses can be claimed for people moving back to Canada for work, who previously had ties and retained those ties. Retirees just moving home cannot claim them either.
Line 219 - Where did you move?
People moving to Canada, who are already deemed or factual residents of Canada or students coming to Canada at the time of making the move can claim expenses.
Even if one has come, landed as a PR, gone back and then moved, won't cut it, as this would not qualify as a deemed or factual resident.
A move is when the person moves, so getting PR, the organising your belongings to come over won't work either, as you moved when you came to Canada, not when your belongings move.
Moving expenses can be claimed for people moving back to Canada for work, who previously had ties and retained those ties. Retirees just moving home cannot claim them either.
Line 219 - Where did you move?
I wonder how this works then.
I was working for a Canadian company in the UK and have now moved to Canada to work with the same Canadian company doing the same job.
Would this qualify for relief in Canada?
I may still be eligible for UK relief, I am not sure yet.