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INCOME TAXES

alhamraz

Full Member
Oct 4, 2017
23
1
Q.12 TELL US WHEN YOU FILLED YOUR INCOME TAXES IN THE LAST 5 YRS USING THE CHART BELOW?

WHAT IS REQUIRED TO FILE?


I FILE MY TAXES EVERY YEAR... JUST DOING THE NORMAL THING FILING EVERY YEAR

SO WHAT SHOULD I DO WITH REQUIRED TO FILE? SHOULD I TICK 'NO'

I DON'T UNDERSTAND REQUIRED TO FILE WHAT MEANS?

THANKS
 

Goku

VIP Member
Jan 13, 2014
4,082
730
Category........
First thing please use CAPSLOCK key. It more like you are shouting when you are using uppercase letters.

Secondly, If you choose the option that you filed your taxes then why would you tick "NO" on another side ??

Leave it blank.
 
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jacZ

Star Member
Oct 5, 2017
65
15
Q.12 TELL US WHEN YOU FILLED YOUR INCOME TAXES IN THE LAST 5 YRS USING THE CHART BELOW?

WHAT IS REQUIRED TO FILE?


I FILE MY TAXES EVERY YEAR... JUST DOING THE NORMAL THING FILING EVERY YEAR

SO WHAT SHOULD I DO WITH REQUIRED TO FILE? SHOULD I TICK 'NO'

I DON'T UNDERSTAND REQUIRED TO FILE WHAT MEANS?

THANKS
you know that not everybody have income,so if u dont have income/taxes to pay ,you are not required to file,....in your case if u filed your taxes each year than tick yes that you did,then if u had income or taxes to pay that specific year than ,file yes too in the required to file,if u were just filling it and no income/tax to pay than tick no that you were not required to file.
I hope its clear.
 

Goku

VIP Member
Jan 13, 2014
4,082
730
Category........
you know that not everybody have income,so if u dont have income/taxes to pay ,you are not required to file,....in your case if u filed your taxes each year than tick yes that you did,then if u had income or taxes to pay that specific year than ,file yes too in the required to file,if u were just filling it and no income/tax to pay than tick no that you were not required to file.
I hope its clear.
Sorry to say but you are wrong. Despite having no income or income you have to file taxes in Canada if you are resident in Canada. You only don't have to file taxes when you are non-resident of Canada that is if you are out of Canada for more than 183 days. Please make sure to provide with correct info.
 

CANADIANZ

Hero Member
Mar 30, 2017
386
199
Sorry to say but you are wrong. Despite having no income or income you have to file taxes in Canada if you are resident in Canada. You only don't have to file taxes when you are non-resident of Canada that is if you are out of Canada for more than 183 days. Please make sure to provide with correct info.

This is incorrect. There are thousands of Canadian residents who are not required to file taxes as per Income Tax Act. Secondly, 'residence' status as per Income Tax Act is different than physical residence or residence as per IRCC. Do not want to get into details of this as it is not a tax forum :)

So please do not make statements about an area you do not have knowledge or expertise. It confuses other people.

For further study you may refer to this link: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-have-file-a-return.html
 

Goku

VIP Member
Jan 13, 2014
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This is incorrect. There are thousands of Canadian residents who are not required to file taxes as per Income Tax Act. Secondly, 'residence' status as per Income Tax Act is different than physical residence or residence as per IRCC. Do not want to get into details of this as it is not a tax forum :)

So please do not make statements about an area you do not have knowledge or expertise. It confuses other people.

For further study you may refer to this link: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-have-file-a-return.html
Lol You know nothing about me or my expertise. I can debate if you want about TAXES. Please go through below points:

Do I have to file a tax return?
You have to file a return if you are a resident of Canada for tax purposes and you owe tax or want to receive a refund.

Residency for Tax Purposes
Canadian residency for tax purposes is not the same as residency for immigration purposes.

People who may be considered residents for tax purposes include:

  • Canadian citizens and permanent residents
  • Refugees (protected persons)
  • People who have received approval-in-principle from Immigration, Refugees and Citizenship Canada, to stay in Canada
  • Temporary residents, such as foreign students and foreign workers
You become a resident of Canada for tax purposes when you establish significant residential ties in Canada, usually on the date you arrive in Canada.

Residential ties include:

  • A home in Canada
  • A spouse or common-law partner and dependents who move to Canada to live with you
  • Personal property in Canada, such as a car or furniture
  • Social ties in Canada
Other ties that may be relevant include:

  • A Canadian driver's licence
  • Canadian bank accounts or credit cards
  • Health insurance with a Canadian province or territory
Find out more about residential ties on the Canada Revenue Agency (CRA) website.

What if I am outside of Canada?
According to Canada Revenue Agency (CRA), the most important factor in determining your residency in Canada for tax purposes is whether or not you maintain residential ties with Canada while you are abroad.

If you maintain residential ties in Canada, you may still be considered a Canadian resident for tax purposes. In this case, you have to pay Canadian income tax on your worldwide income.

If you break your Canadian residential ties and leave Canada, you can become a Canadian resident for tax purposes again when you move back to Canada and re-establish your residential ties.

Generally, your residency status and tax obligations can only be determined on a case-by-case basis after taking into consideration all of the relevant facts. You can find information about determining your residency status in these guides:

This can be a confusing process. If you need more information or help, contact the CRA or a settlement agency. To find help, go to Services Near Me and search for "settlement services" in your area.

Source: https://settlement.org/ontario/daily-life/personal-finance/taxes/do-i-have-to-file-a-tax-return/

if you want I can get you similar information from CRA website too. Answer I provided above was short and simple.

P.S.: I am an Accounting/Tax specialist.
 
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CANADIANZ

Hero Member
Mar 30, 2017
386
199
I do not disagree with any of information in Income Tax Act or any information coming from a government of Canada websites.

But I do disagree with your statement, "Despite having no income or income you have to file taxes in Canada if you are resident in Canada."

Please do not confuse, residency for tax purposes and a resident (for tax purpose) being legally required to file taxes are two different things.

As I mentioned earlier, there are many Canadian residents who are not required to file taxes legally as per Income Tax Act.

Common sense argument: If all resident must or have to file taxes, then why IRCC asks this question that "are you required to file taxes?" Or why CRA has videos or articles about who is required to file?

Debate is good thing if we learn something out of it, otherwise it is waste of time :) I do not desire to reveal my expertise or designations, but since you are Accounting/Tax specialist, it would be for your benefit to clear this up; for learning purpose you may want to call CRA or refer to Income Tax Act.

Income Tax Act: http://laws-lois.justice.gc.ca/eng/acts/I-3.3/

The question under discussion can easily be understood from this link: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-have-file-a-return.html
Or this Video: https://www.canada.ca/en/revenue-agency/news/cra-multimedia-library/individuals-video-gallery/series-preparing-your-income-tax-benefit-return.html

Have a great day! :)
 
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Goku

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Jan 13, 2014
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I do not disagree with any of information in Income Tax Act or any information coming from a government of Canada websites.

But I do disagree with your statement, "Despite having no income or income you have to file taxes in Canada if you are resident in Canada."

Please provide me with a valid source saying that you don't have to file taxes in Canada despite being Resident in Canada. I would like to know if I am wrong/missed anything. Thanks :)

Please do not confuse, residency for tax purposes and a resident (for tax purpose) being legally required to file taxes are two different things.

Determining your residency status: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

Factual Residents: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/factual-residents-temporarily-outside-canada.html

Deemed Resident/183 Days thing: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/deemed-residents.html

Non-Resident/183 Days: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.html

Summary: https://home.kpmg.com/xx/en/home/insights/2011/12/canada-income-tax.html#3

Please go through this and it will answer how both are connected. For eg. If you are in Canada for more than 183 days then you are considered resident of Canada and you have to file your taxes on Canadian source income and world income. If you are not in Canada for more than 183 days then your considered Deemed or Non-resident depending on your situation and filing of taxes will depend on situation.


As I mentioned earlier, there are many Canadian residents who are not required to file taxes legally as per Income Tax Act.

Nowhere in ITA it says you are not required to file Income tax despite being Resident of Canada.

Common sense argument: If all resident must or have to file taxes, then why IRCC asks this questions that "are you required to file taxes'? Or why CRA has videos or articles about who is required to file?

Because let's say lived out of Canada for 2 years. You are considered non-resident for tax purposes. Now you are applying for citizenship and that time you have to check "No REQUIRED TO FILE" option because you didn't have any ties to Canada or any income from Canadian Source making to legally eligible to not file Income tax in Canada. But let's say you had some income from the Canadian source during those 2 years and you didn't file Income Tax in Canada then you would select the option "Required to file".

Hope this helps. :)

/QUOTE]

I like this kind of healthy discussion. Thanks.
 

spyfy

Champion Member
May 8, 2015
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You provided the source yourself. From the page you quoted earlier:

"You have to file a return if you are a resident of Canada for tax purposes and you owe tax or want to receive a refund."

Please note the usage of AND. Only if you fulfil both conditions do you have to file.

Examples for people who don't have to file:
  • High school students and post-secondary students unless they have a job on the side (and even then only if the tax isn't deducted at the source)
  • housewives and househusbands
  • unemployed people
  • many retirees
  • ...
All the aforementioned people should file anyways because in fact you get nice tax credits for these situations. But you don't have to file.

Also, as @CANADIANZ already pointed out: Residence in Canada and residence for tax purposes in Canada are two completely independent things. These depend on many things, among others tax treaties.
 

dbss

Champion Member
Jun 22, 2012
1,088
43
To add to above:

Canada does not discriminate based on your status in the country for filing of taxes. So it does not matter if you are a PR, student or worker or citizen, the law is the same for everyone.
 

CANADIANZ

Hero Member
Mar 30, 2017
386
199
@Goku Thanks for sharing all the links. I am writing details again, so it may benefit other members of the forums who have similar question:

All information comes from Income Tax Act, which is the the law book. But legal language in not legible for many.

So, just to save some time, this link provides to the point information on the subject under discussion: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-have-file-a-return.html

You must file a return for 2016 if: (Here 'must' means, you are legally required to file taxes under Income Tax Act)
  • You have to pay tax for 2016.
  • We sent you a request to file a return.
  • You received working income tax benefit advance payments in 2016.
  • You disposed of capital property in 2016 (for example, if you sold real estate, your principal residence, or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed income to you, or you are reporting a capital gains reserve you claimed on your 2015 return).
  • You have to repay any of your old age security or employment insurance benefits. See line 235.
  • You have to contribute to the Canada Pension Plan (CPP). This can apply if for 2016 the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222.
  • You are paying employment insurance premiums on self-employment and other eligible earnings. See lines 317 and 430.
If none of the above situations apply to any individual resident in Canada, they are not legally required to file taxes. Thus, the asnwer to question asked in Citizenship forms in "NO" for individuals who are not legally required to file. However, CRA still encouges people that they should file taxes and that is also mentioned in the link I sent.

('Should' means you are not legally required to file, but CRA is encouraging you to file.)

Practical example for clarification:
An old retired couple moved to Canada 5 years ago and were PR for 4 years. They were living with their son, no income in Canada or abroad , no pension, no capital property in canada or abroad. Old age security does not apply.

Are they required to file taxes? No, they are NOT. They are now citizens of Canada and living here for 5 years, are they legally required to file taxes? Still NO.
 
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jacZ

Star Member
Oct 5, 2017
65
15
Sorry to say but you are wrong. Despite having no income or income you have to file taxes in Canada if you are resident in Canada. You only don't have to file taxes when you are non-resident of Canada that is if you are out of Canada for more than 183 days. Please make sure to provide with correct info.
I provided correct informations,and what you are stating is the residency status to ARC,and not if you have to file or not...and actually this is in my field of expertises,im an accountant...
 

guddylover

Hero Member
Dec 31, 2016
222
41
Does anybody know the exactly reason why they have the 'income tax filing' requirement? Is it to check if you have been filing your return as required by CRA or a way to verify your work history? Thanks in advance.
 

dbss

Champion Member
Jun 22, 2012
1,088
43
Does anybody know the exactly reason why they have the 'income tax filing' requirement? Is it to check if you have been filing your return as required by CRA or a way to verify your work history? Thanks in advance.
Added:

http://www.cic.gc.ca/english/resources/tools/cit/grant/residence/tax.asp

Does anyone know what the terms "tax filing history" and "residency information" stand for exactly?
For example; does tax filing history mean the date an individual filed the tax or all the information (like all the schedules, T4, RRSP etc.)?
What does residence information quantify to in the end? Does it mean the province declared on Dec 31 of the filing year?
 

beely

Star Member
Jul 13, 2010
87
1
Gents,

I had a question which I asked before but I didn't get the answer for it .. hopefully anyone can advise me.

I sent my application, but I noticed I did a mistake in taxes question. Actually I understood Required to file in a different way as I still have outstanding years that I still need to file or still pending, that's why I marked NO, and i marked YES in Already filed.

And now I know my understanding was wrong but is that a big deal and might cause my application to be returned or delay the process ?

If Yes, then what should I do to fix this or clarify that I have no problem with taxes and it was just a misunderstanding.

Appreciate your feedback