garymc

Hi all,

Need some quick responses regards this issue.

Having Permanent Resident Status in Canada i travelled to Toronto in March 09 intending to find work, the long and short of it was that I came back after a short time there.

I had posted a tax question when i was there asking what happens regards completing a tax return as I had not worked and had therefor not earned any money and is there any tax issues regards my house back in Scotland which I still have and have never rented out.

JohnboyE was helpfull at that time indicating that when returning to Scotland I need not do anything.

Well i feel now I will go back to Toronto and give it a proper chance. Again i would like to ask a similar tax question.

I'm not thinking about what happens if I go over there and work and then after a while decide to come back for good, however if that were the case are there any problems i might come across regarding tax returns after having already been out there the previous year and having not filled out a tax return and would there be any tax issue regarding my house in Scotland that I am still paying a mortgage on and don't intend to rent out as of yet?

I look forward to your replies as I intend to get ready to go soon.

Thanks all.

Gary..

JonboyE

It is a question of tax residency. Last year you didn't settle in Canada and didn't stay long enough to be a deemed resident. You didn't earn anything and so owed no tax. Therefore 2009 has no bearing on your current situation - so don't worry about it.

If you come back to Canada in 2010 and start work you become tax resident in Canada from the day you arrive. If you subsequently decide it is not for you you must file tax returns for any years that you are here and owe taxes. I strongly advise filing tax returns even if you don't owe taxes. As for your house in Scotland, there are no Canadian tax implications if you don't rent it out and don't sell it whilst you are in Canada. If you stay in Canada for 5 years or more there may be a taxable capital gain or loss when you leave, but no need to worry about this yet.

garymc

JonboyE, thanks for the reply.

That sounds pretty straight forward.

When you say that you strongly recommend filing a tax return even if you don't owe and taxes, should I have done this the first time that I was over?

If in 2010 I earn cash and owe taxes will the tax forms ask when I arrived in Canada? If i'm indicating I was also in Canada in 2009 will I need to prove the dates etc.

Thanks JonboyE

JonboyE

No, you were not tax resident in Canada in 2009.

The form asks for the date you became resident in Canada. This will be in 2010. No need to mention anything about 2009.

garymc

jonboyE, thanks for your help.

Gary.

garymc

Hi Again,

I forgot to mention, when I was over in 2009 i did get my SIN card, and opened a bank account that I closed 3 weeks later.

Not sure if that makes any difference.

Cheers, finally.

Gary

JonboyE

No difference.

garymc

Much Appreciated

Gary