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Issue with first Tax return after declaring worldwide income before coming to Canada for GST/HST

chasinglight

Hero Member
Apr 28, 2014
280
4
Toronto, ON
Visa Office......
Port Of Spain
So my friend moved to Canada as a PR mid 2016. Filed her taxes in 2017 and got a refund of X amount and then got a letter saying they needed her worldwide income before moving to Canada to calculate her HST/GST benefit. She declared what it was and then this month gets a letter saying she needs to repay the refund she was given plus more money after they reassessed her taxes based on her worldwide income. I always assumed the money you made before coming to Canada was not taxable!

Did the CRA make a mistake?
 

pie_vancouver

Hero Member
Jun 12, 2014
963
86
Vancouver
Category........
Visa Office......
Manila
NOC Code......
1111
Job Offer........
Pre-Assessed..
App. Filed.......
2008
VISA ISSUED...
2009
LANDED..........
2010
Was this the form your friend submitted? Date that your friend became PR matters.
https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/E/pbg/gf/rc151/rc151-17e.pdf
Income earned before landing as PR doesn't matter in ITR unless from Canadian sources.

For the part of the tax year that you WERE NOT a resident of Canada
You have to report the following amounts:
  • income from employment in Canada or from a business carried on in Canada;
  • taxable capital gains from disposing of taxable Canadian property; and
  • taxable part of scholarships, bursaries, fellowships, and research grants you received from Canadian sources.
Tell your friend to call CRA, there must be a mistake on the dates inputted.
 

canuck_in_uk

VIP Member
May 4, 2012
31,553
7,205
Visa Office......
London
App. Filed.......
06/12
So my friend moved to Canada as a PR mid 2016. Filed her taxes in 2017 and got a refund of X amount and then got a letter saying they needed her worldwide income before moving to Canada to calculate her HST/GST benefit. She declared what it was and then this month gets a letter saying she needs to repay the refund she was given plus more money after they reassessed her taxes based on her worldwide income. I always assumed the money you made before coming to Canada was not taxable!

Did the CRA make a mistake?
She needs to contact CRA. Without looking at her tax return, no one can say what happened.
 

mayank.dce2k7

Full Member
Sep 3, 2017
26
3
So my friend moved to Canada as a PR mid 2016. Filed her taxes in 2017 and got a refund of X amount and then got a letter saying they needed her worldwide income before moving to Canada to calculate her HST/GST benefit. She declared what it was and then this month gets a letter saying she needs to repay the refund she was given plus more money after they reassessed her taxes based on her worldwide income. I always assumed the money you made before coming to Canada was not taxable!

Did the CRA make a mistake?
Did you find out the answer? I have received a similar form.
 

canuck78

VIP Member
Jun 18, 2017
55,632
13,536
Was she working when she arrived in Canada? She may have received a refund based on having no or very low income which actually wasn't the case after she reported her worldwide income.
 

canuck_in_uk

VIP Member
May 4, 2012
31,553
7,205
Visa Office......
London
App. Filed.......
06/12
Did you find out the answer? I have received a similar form.
Tax credits and benefits are based on previous income. CRA likely determined that your previous income was too high to be eligible for the credits/benefits and now require you to pay it back.
 
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torontosm

Champion Member
Apr 3, 2013
1,676
261
So my friend moved to Canada as a PR mid 2016. Filed her taxes in 2017 and got a refund of X amount and then got a letter saying they needed her worldwide income before moving to Canada to calculate her HST/GST benefit. She declared what it was and then this month gets a letter saying she needs to repay the refund she was given plus more money after they reassessed her taxes based on her worldwide income. I always assumed the money you made before coming to Canada was not taxable!

Did the CRA make a mistake?
She likely received some benefits (HST, Trillium, etc.) that she was not entitled to based on her global income, and she is being asked to repay these (and not her tax refund which is very different). The money you make before coming to Canada is indeed not taxed at all.