Tax Return Question
Mar 2nd 2012, 6:15 pm
#16
Forum Regular
Joined: Jun 2008
Location: Nova Scotia
Posts: 188
Re: Tax Return Question
Just to maybe close my part of this thread. I actually spoke to an accountant today and when I explained my position even they were confused as to any tax liability. However, she is going to let me know. I am more than happy to complete a tax return here and pay any tax but I suspect that it will probably end up costing me more to sort it out but hey ho. So thank you to everyone who contributed to my little part of this, I do appreciate it very much.
Mar 2nd 2012, 7:42 pm
#17
Joined: Sep 2008
Posts: 12,830
Re: Tax Return Question
Just to maybe close my part of this thread. I actually spoke to an accountant today and when I explained my position even they were confused as to any tax liability. However, she is going to let me know. I am more than happy to complete a tax return here and pay any tax but I suspect that it will probably end up costing me more to sort it out but hey ho. So thank you to everyone who contributed to my little part of this, I do appreciate it very much.
Mar 2nd 2012, 9:13 pm
#18
Forum Regular
Joined: Jun 2008
Location: Nova Scotia
Posts: 188
Re: Tax Return Question
Get the accountant to put their advice in writing, covers your butt if CRA disagree with your accountant, its you who ends up paying the bill and any fines. Don't forget to ask them about foreign asset reporting. If you file, you may end up getting enough back to cover the cost, HST credits etc.
Mar 2nd 2012, 9:17 pm
#19
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Mar 2nd 2012, 10:46 pm
#21
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Tax Return Question
Then you are a tax-resident of Canada. Your world-wide income is taxable in Canada.
You are required to file a tax return if you owe tax for the year, or have made a capital gain.
You are also required to file a T1135 form if your overseas assets had a cost of $100,000 or more (for assets you owned before you became tax-resident in Canada this is the market value on the day you became tax resident). You don't need to file this form for the year you first became tax resident but you must do for every subsequent year. The penalty for failing to file is up to $2,500.00.
You are required to file a tax return if you owe tax for the year, or have made a capital gain.
You are also required to file a T1135 form if your overseas assets had a cost of $100,000 or more (for assets you owned before you became tax-resident in Canada this is the market value on the day you became tax resident). You don't need to file this form for the year you first became tax resident but you must do for every subsequent year. The penalty for failing to file is up to $2,500.00.
Mar 2nd 2012, 11:36 pm
#22
Forum Regular
Joined: Jun 2008
Location: Nova Scotia
Posts: 188
Re: Tax Return Question
Then you are a tax-resident of Canada. Your world-wide income is taxable in Canada.
You are required to file a tax return if you owe tax for the year, or have made a capital gain.
You are also required to file a T1135 form if your overseas assets had a cost of $100,000 or more (for assets you owned before you became tax-resident in Canada this is the market value on the day you became tax resident). You don't need to file this form for the year you first became tax resident but you must do for every subsequent year. The penalty for failing to file is up to $2,500.00.
You are required to file a tax return if you owe tax for the year, or have made a capital gain.
You are also required to file a T1135 form if your overseas assets had a cost of $100,000 or more (for assets you owned before you became tax-resident in Canada this is the market value on the day you became tax resident). You don't need to file this form for the year you first became tax resident but you must do for every subsequent year. The penalty for failing to file is up to $2,500.00.
Mar 3rd 2012, 12:09 am
#23
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Tax Return Question
Yes, if you have only been in Canada since May 2011 you don't have to file the T1135 for 2011.
