Tax Returns

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Old Apr 10th 2009, 12:43 am
  #1  
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I went in to H&R Block yesterday to do my tax returns.
There was a lot of confusion and my consultant kept going in and out of other offices to check stuff.
Anyway at the end she said I would be due quite a nice bit of cash back.
Now she just phoned and said, mistake, need to add UK income.
I was only over here, Canada, for part of last year.
I'm confused................
If it is your tax returns..............
surely it would be the income you earned during the time you were in the country only...............
I think she really got confused when it said income from abroad...........
I thought that must be any income earned from abroad whilst in the country, Canada.

Any idea's......
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Old Apr 10th 2009, 12:49 am
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Default Re: Tax Returns

Canadian law requires one to report world-wide income. Assuming you have paid income tax on your UK income you will be allowed to deduct this from any Canadian taxes owing.
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Old Apr 10th 2009, 12:54 am
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So.............
I have my P60.......from my previous UK employer..........
will H&R just take that info and add it to my Canadian employment info........
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Old Apr 10th 2009, 1:16 am
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Default Re: Tax Returns

Originally Posted by Paul in Victoria
So.............
I have my P60.......from my previous UK employer..........
will H&R just take that info and add it to my Canadian employment info........

The "worldwide income" thingy only kicks in when you become a resident for tax purposes. If you earned the money in England before this occurred, you will not have to pay tax on it. Your posts do not make it clear whether this is the case.
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Old Apr 10th 2009, 1:18 am
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Default Re: Tax Returns

The question is where are you tax resident, and did this change during the year? edit: as Almost Canadian has pointed out.

You cannot be factually tax resident in the UK and Canada at the same time.

For the vast majority of people, the day they come to live in Canada they cease to be tax resident in the UK and become tax resident in Canada.

As Auld Yin says, once you are tax resident in Canada you pay tax on your world-wide earnings so you will be taxed on income from the UK after you have moved to Canada. However, the Canadian Government cannot, and will not, tax you on any UK income you earned BEFORE you become tax resident in Canada.

If you apply for child tax credit the CRA will want to know about prior earnings in the UK in deciding how much benefit you are entitled to, but this has b*gg*r all to do with H&R Block and the tax return you are filing now.

This is the problem with dealing with tax preparers like these. They are OK if you affairs are simple - A T4, an RRSP contribution and a donation or two - but otherwise you are much better off researching yourself or going to see a proper accountant.
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