GandH

We were wondering if someone could confirm for us that we don't have to file a Canadian tax return this year.

We've read the wiki and visted the CRA web site (here specifically: http://www.cra-arc.gc.ca/tx/nnrsdnts...nwcmr-eng.html) and it seems that even though we landed last year we aren't tax resident as we don't have a house, drivers licence, bank account, SIN etc or any other ties in Canada, with the exception of the family friends we have in Canada whose address we used to have our PR cards sent to.

Hope someone can help.

Cheers

JonboyE

I assume you live in the UK? If so, and based only on the information you give above, then you are not required to file a tax return unless you have some Canadian sourced income.

GandH

Yes, we are still, unfortunately, in the UK, hopefully moving soon Thanks for your advice.

Much appreciated.

Yandros

Hi,
We were in exactly this situation (ie technically landed in Jun 2010, but not actually physically moving until May 2012). I rang the Canada Revenue Agency and a very helpful guy told me that we wouldn't be tax resident until we actually moved to Canada and thus wouldn't have to complete a Tax Return until then.
Not looking forward to my first one next Jan, but I guess it's a small price to pay.
Cheers
Kevin

laser558

I wonder if I could hijack this post a little as it is related. I have been here as a landed resident since May last year. I am for all intents and purposes retired. I don't work, I don't have a SIN, I live off my savings and I still have my house in the UK that I can go back to anytime. I still pay my Council Tax over there, my tv licence and indeed, my tax. Now, I am hoping to keep it like that. It seems such an upheaval to start going through the process of a Canadian Tax return especially since I am going to be returning to the UK on a more permanent basis. Any views from anyone really would be welcome.

Almost Canadian

Do you receive a pension of any kind?

laser558

No, I am just living off savings. I could claim my private pension when I'm 55 but I'm not there yet.

Auld Yin

So if you became seriously ill today would you fly back to the UK for treatment at own expense, even if it was on a stretcher? Do you drive/travel on Canadian roads and highways? Such things, and many more, are heavily subsidized by Canadian taxpayers.
Do you think that's okay? Well I, for one do not. Be an honest member of society and file your Canadian Income Taxes.

justkidding

I don't see that it matters that he/she files a tax return. No income = no tax payable. More likely they will get money from the government

laser558

That was my point Auld Yin. If I have no income, what tax do I pay? This is not a matter of evading tax, I simply was seeking some sensible answers. It could well be that it costs more for my tax form to be processed than any tax I have to pay, which is likely to be none. Having said that, it is a good point you raise isn't it. I mean, what if someone was a resident here and lived for say 5 months a year here, did not earn any income and then returned to the UK. Their country for tax would be the UK, yet they are still likely to use Canadian roads.

Aviator

If they have savings, they have income if it is invested. CRA require all world income to be reported as well as any foreign owned property (incl bank accounts) that cost over $100k. Failure to report will incur significant fines. Paying tax in the UK does not satisfy CRA if tax in Canada is owed. Not getting a SIN, does not mean you don't want to play! However not having a SIN can cause no end of complications at some point.

If one is not sure of their status, consult a tax accountant or ask CRA for a determination. If you 'think' you are not tax resident, then it turns out you are, it can be pretty expensive.

JonboyE

A question to laser558. Are you enrolled in your provincial health care plan?

justkidding

Laser558 has said he has no income in the previous post. I'm not saying he shouldn't file a tax return but when he does he will probably qualify for the GST rebate.

Aviator

He also says he is living off savings. Presumably he is shewed enough to have invested savings, which generates income. He has also said he has a house in the UK. If CRA deem him as tax resident, he has to report earnings on those savings/investments and/or CGT if applicable, regardelss if tax has been paid in the UK. As he said he pays tax in the UK, he must have some income, otherwise there would be no tax paid in the UK either.

If his investments and savings total more than $100k and the house is valued at more than $100k and he is deemed tax resident, these have to be reported as foreign assets and failure to do so results in heavy fines if found out.

justkidding

I'm not disagreeing.