REFUND
 

Hi,
Can someone help -
Is it true that you can apply for a refund re moving expenses ie flights etc. My husband moved to Edmonton 5 months ago as he was offered a managerial post, we (daughter and myself) have just arrived and a colleague of my husband said that we should apply for a refund of all our expenses re the move!:ohmy:
ta

Re: REFUND
 

Hello, Sheila, and welcome to the BE forum.

Your husband's colleague's tip is applicable only to moves within Canada. This tax break is not available to people who move to Canada from abroad.
x

Re: REFUND
 

Hi Judy, Does that apply if you are there on PR moving within Canada ?

Re: REFUND
 

Yes, province to province

Re: REFUND
 

Thanks Saw 04 thats interesting to know :thumbsup:

Re: REFUND
 

We've just claimed ours on our returns :thumbup: Province to province - petrol, food, hotel bills, estate agent fees to sell, legal costs to buy, cost of actual removal... it all adds up to a fair whack, more expensive than our international move I reckon :eek:

Re: REFUND
 

It does not have to be from Province to Province. As long as the distance is at least 40km and other criteria are fulfilled, it can be claimed.

Check out here: http://www.cra-arc.gc.ca/tx/ndvdls/t.../menu-eng.html

Re: REFUND
 

I know some members here managed to claim their international move, whilst others thought that was a mistake and fluke that their claim was accepted by CRA...

OP, you can try - they can only say no. Keep all receipts, ours were asked for. Glad they were though, we'd diddled ourselves 2.5k on estate agent fees on our return by not reading his bill properly the first time :eek:

Re: REFUND
 

Thanks Biiiiink :thumbsup: didn't realise it covered all that :thumbsup:

Wonder how many have managed to claim international moves ?

Re: REFUND
 

According to the link Almost Canadian provided it would appear that you can claim moving expenses for an international move.

Under the "Answer a few questions" you come to a page titled "Can you claim moving expenses?". On that page there are some statements to choose if they apply to you, one of which is "You are an employee or a self-employed individual who moved to a new work location to or from Canada or between two locations outside Canada." (My emphasis.)

If that move was more than 40 kilometres (I think the UK is further than that.;)) then you can claim moving expenses.

All that would lead me to believe it can be done.

Re: REFUND
 

I am not sure which page you are quoting from. On this page it says:

Generally, your move must be from one place in Canada to another place in Canada.

The Income Tax Act gives the exceptions to the word "generally" as military, diplomatic and some inter-company transfers where a tax resident of Canada is required to move to or from Canada as part of their duties. Implicit is that the taxpayer is resident in Canada for tax purposes before and after the international move.

Re: REFUND
 

Does this also apply for people on TWP's?

Re: REFUND
 

I have found the page now. Note that it says:

You have told us:

You are an employee or a self-employed individual and a deemed or factual resident who moved to a new work location to or from Canada or between two locations outside Canada (and the move was from one place where you ordinarily resided to live in another place where you will reside).


I think that tax residency is the issue here. These are the circumstances where you can claim moving expenses to/from Canada or for two places outside Canada. You must be a:

Factual resident
You are a factual resident if you keep significant residential ties in
Canada while living or travelling outside the country. For
information, see Interpretation Bulletin IT-221, Determination of an
Individual's Residence Status, or Pamphlet T4131, Canadian
Residents Abroad

or a

Deemed resident of Canada
You are a deemed resident if, at any time in the year, you live
outside Canada, you do not keep residential ties here, and you are:
* a government employee;
* a member of the Canadian Forces;
* a member of the Canadian Forces overseas school staff; or
* a person working under a Canadian International Development
Agency program.

You cannot claim a moving expense deduction for a move from the UK when you arrive as a PR or on a TWP.

Re: REFUND
 

For your move from BC to NS then yes, as long as you or your OH is working in NS. For a move to Canada then no.

Re: REFUND
 

Fabulous!

Re: REFUND
 

This is the law, from the Income Tax Act:

62. (1) There may be deducted in computing a taxpayer’s income for a taxation year amounts paid by the taxpayer as or on account of moving expenses incurred in respect of an eligible relocation,

248. (1)"eligible relocation" means a relocation of a taxpayer where

(a) the relocation occurs to enable the taxpayer

(i) to carry on a business or to be employed at a location in Canada (in section 62 and this subsection referred to as “the new work location”), or

(ii) to be a student in full-time attendance enrolled in a program at a post-secondary level at a location of a university, college or other educational institution (in section 62 and in this subsection referred to as “the new work location”),

(b) both the residence at which the taxpayer ordinarily resided before the relocation (in section 62 and this subsection referred to as “the old residence”) and the residence at which the taxpayer ordinarily resided after the relocation (in section 62 and this subsection referred to as “the new residence”) are in Canada, and

(c) the distance between the old residence and the new work location is not less than 40 kilometres greater than the distance between the new residence and the new work location

except that, in applying subsections 6(19) to (23) and section 62 in respect of a relocation of a taxpayer who is absent from but resident in Canada, this definition shall be read without reference to the words “in Canada” in subparagraph (a)(i), and without reference to paragraph (b);


And this is CRA's interpretation (IT-178)

¶ 19. After 1988, a taxpayer who is, throughout all or part of a taxation year, absent from Canada, but resident in Canada for tax purposes, is not subject to the "in Canada" requirements in ¶s 1 and 5 above (Section 64.1). Taxpayers absent from, but resident in Canada for tax purposes, would include both an individual deemed by section 250 to be a resident of Canada and an individual considered resident in Canada while abroad because of the retention of residential ties in Canada (see the current version of IT-221, Determination of an Individual's Residence Status).

Re: REFUND
 

That's too bad because the first link seems to indicate it is possible.

Perhaps some changes need to be made to the Government web site. Like that's going to happen real soon...I think not. :(

Re: REFUND
 

They could make it much clearer if they just said that you must be resident in Canada for tax purposes before and after the move. Then they wouldn't need to worry about in or out, or to and from. Unfortunately, tax law is written by lawyers.

Re: REFUND
 

We were able to claim for our move, our friends tried to claim this year and was told that there have been some recent changes to that policy and they have taken away the international allowance. Shame really as it's really helpful to get some money back.

Re: REFUND
 

The law is quite clear (lawyers, yes) , it's the web pages of CRA (public servants, no) that is confusing:thumbsup:

I tried to claim mine in last year's tax return even though I knew the law was against me - I got a nice round number 0 :thumbdown:

It's the resident issue that is the killer for PRs :p

Re: REFUND
 

Thanks to everyone who answered :)

Re: REFUND
 

You're welcome;)