Need help with Notice of Assessment

[vision86]

Hello everybody,

I have a problem and I hope you can help me. I got my PR and moved to Canada in 2017 July so I have been in Canada more than 1095 days. I have not worked in Canada in 2017 but worked in 2018 and 2019. In 2017, I have worked only in back in my country. When I started to gather documents for my application, I noticed that I have Notice of Assessments for 2018 and 2019 but don't have it for 2017. When I asked our family accountant who did our taxes, he told me that based on the information my Canadian partner provided, I was not deemed to be a resident of Canada in 2017 as a result, no return was filed and there is no basis on which to file one now. He told me that for purposes of my citizenship application, I should provide my existing notices of assessment (2018 and 2019) and indicate there is no 2017 assessment given I was not a resident of Canada in that year. But my thinking is that this may result a rejection on my application. How can I count my 2017 days if I was not reported as a resident to CRA? There is nothing that have been filed for my 2017. I have been told by someone else that maybe I should send a letter or fax to CRA to change the status of myself for 2017 and file taxes even if no income made in Canada. I have also been told that this may take a very long time.

What should I do? Should I just apply with 2018 and 2019 assessments indicating that I was not deemed to be a resident for tax purposed? Or should I reach out to CRA to correct my status and then apply? Can I apply for citizenship right after I reached out to CRA so that I can provide corrected documents during my application?

Any help is appreciated as I am clueless right now.

Thanks for reading and have a great day!

 

[nerd]

If you moved in July 2017 then you are expected to file a return for 2017 even if you had zero income in Canada.
My travel dates are identical to yours (landed in July 2017) and I had no job back then but still I filed a zero $ tax return for 2017 (I declared my worldwide income in 2017).
Other people can guide you if you can file a tax return for a past year or not.
Maybe you need a better family accountant.

 

[rafzy]

Hello everybody,

I have a problem and I hope you can help me. I got my PR and moved to Canada in 2017 July so I have been in Canada more than 1095 days. I have not worked in Canada in 2017 but worked in 2018 and 2019. In 2017, I have worked only in back in my country. When I started to gather documents for my application, I noticed that I have Notice of Assessments for 2018 and 2019 but don't have it for 2017. When I asked our family accountant who did our taxes, he told me that based on the information my Canadian partner provided, I was not deemed to be a resident of Canada in 2017 as a result, no return was filed and there is no basis on which to file one now. He told me that for purposes of my citizenship application, I should provide my existing notices of assessment (2018 and 2019) and indicate there is no 2017 assessment given I was not a resident of Canada in that year. But my thinking is that this may result a rejection on my application. How can I count my 2017 days if I was not reported as a resident to CRA? There is nothing that have been filed for my 2017. I have been told by someone else that maybe I should send a letter or fax to CRA to change the status of myself for 2017 and file taxes even if no income made in Canada. I have also been told that this may take a very long time.

What should I do? Should I just apply with 2018 and 2019 assessments indicating that I was not deemed to be a resident for tax purposed? Or should I reach out to CRA to correct my status and then apply? Can I apply for citizenship right after I reached out to CRA so that I can provide corrected documents during my application?

Any help is appreciated as I am clueless right now.

Thanks for reading and have a great day!

I moved in March 2017 and yet I filled my tax return. It doesn't matter if you have any income or not but you should have filled taxes for 2017.
Your application will be rejected if you don't provide last 3 years NOA as per my understanding.

 

[mbaleine]

What utter nonsense. Physical residency is not the same as residency for tax purpose. If you had no income and did not otherwise owe tax, you were not required to file income tax. You can, but you are not required to. Read the fine prints in those tax instructions. Just indicate that you were not required to file tax for 2017 on the application form.

 

[EUK]

Filling taxes is based on residency, number of days is one of many factors which determines the tax obligations, some other factors are health insurance, children benefits etc. Would suggest you to speak to CRA or your accountant.

 

[s23srinivas]

Hello everybody,

I have a problem and I hope you can help me. I got my PR and moved to Canada in 2017 July so I have been in Canada more than 1095 days. I have not worked in Canada in 2017 but worked in 2018 and 2019. In 2017, I have worked only in back in my country. When I started to gather documents for my application, I noticed that I have Notice of Assessments for 2018 and 2019 but don't have it for 2017. When I asked our family accountant who did our taxes, he told me that based on the information my Canadian partner provided, I was not deemed to be a resident of Canada in 2017 as a result, no return was filed and there is no basis on which to file one now. He told me that for purposes of my citizenship application, I should provide my existing notices of assessment (2018 and 2019) and indicate there is no 2017 assessment given I was not a resident of Canada in that year. But my thinking is that this may result a rejection on my application. How can I count my 2017 days if I was not reported as a resident to CRA? There is nothing that have been filed for my 2017. I have been told by someone else that maybe I should send a letter or fax to CRA to change the status of myself for 2017 and file taxes even if no income made in Canada. I have also been told that this may take a very long time.

What should I do? Should I just apply with 2018 and 2019 assessments indicating that I was not deemed to be a resident for tax purposed? Or should I reach out to CRA to correct my status and then apply? Can I apply for citizenship right after I reached out to CRA so that I can provide corrected documents during my application?

Any help is appreciated as I am clueless right now.

Thanks for reading and have a great day!

You may check the following documents to conclude if you were a resident of Canada for tax purpose based on your exact situation:

• https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4055/t4055-newcomers-canada.html
• https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-1-residency/income-tax-folio-s5-f1-c1-determining-individual-s-residence-status.html

Even if you’re not required to file, sometimes it’s in your own best interest to do so anyways, for the reasons like GST/HST credit eligibility, increased saving (RRSP/TFSA) contribution limit and other benefits like child benefit, tuition credit, guaranteed income scheme etc. But again you can check/re check with an accountant based on your situation as I am not a professional accountant.

In any case, you can still file your IT returns though you had a 0 income in 2017. Then proceed with the citizenship application. By doing this you may only be waiting a month or two for the NOA before you apply for the citizenship but you will definitely be fulfilling the requirement of 3 NOAs. Check the following link for filing related dates:

• https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers/efile-news-program-updates.html

You can file the returns online on your own but if you feel being the first time you wouldn't want to make any mistake you can get a professional help.

All the best!

 

[Mexontario]

Hello everybody,

I have a problem and I hope you can help me. I got my PR and moved to Canada in 2017 July so I have been in Canada more than 1095 days. I have not worked in Canada in 2017 but worked in 2018 and 2019. In 2017, I have worked only in back in my country. When I started to gather documents for my application, I noticed that I have Notice of Assessments for 2018 and 2019 but don't have it for 2017. When I asked our family accountant who did our taxes, he told me that based on the information my Canadian partner provided, I was not deemed to be a resident of Canada in 2017 as a result, no return was filed and there is no basis on which to file one now. He told me that for purposes of my citizenship application, I should provide my existing notices of assessment (2018 and 2019) and indicate there is no 2017 assessment given I was not a resident of Canada in that year. But my thinking is that this may result a rejection on my application. How can I count my 2017 days if I was not reported as a resident to CRA? There is nothing that have been filed for my 2017. I have been told by someone else that maybe I should send a letter or fax to CRA to change the status of myself for 2017 and file taxes even if no income made in Canada. I have also been told that this may take a very long time.

What should I do? Should I just apply with 2018 and 2019 assessments indicating that I was not deemed to be a resident for tax purposed? Or should I reach out to CRA to correct my status and then apply? Can I apply for citizenship right after I reached out to CRA so that I can provide corrected documents during my application?

Any help is appreciated as I am clueless right now.

Thanks for reading and have a great day!

Per CRA, If you have a bank account opened or a Canadian license/provincial health card issued in 2017, you ARE considered as a resident for that year. You NEED to file taxes even if there is no income. Your world wide income after you land IS considered taxable. The income before landing is NOT taxable, although it is used to assess some of your benefits (Such as GST credit, OTB and childcare etc.) for that year.

 

[vision86]

Per CRA, If you have a bank account opened or a Canadian license/provincial health card issued in 2017, you ARE considered as a resident for that year. You NEED to file taxes even if there is no income. Your world wide income after you land IS considered taxable. The income before landing is NOT taxable, although it is used to assess some of your benefits (Such as GST credit, OTB and childcare etc.) for that year.

Should I file 2017 before the application then?

 

[Mexontario]

Yes, you do need to file. IRCC requires atleast 3 NOA's for citizenship eligibility. clearly stated here.
https://www.canada.ca/en/immigration-refugees-citizenship/services/canadian-citizenship/become-canadian-citizen/eligibility.html#income-taxes

 

[dpenabill]

Citizenship applicants do NOT need to submit copies of any NOAs with a citizenship application.

The applicant MUST give consent to IRCC and CRA (this is in item 12.c) in the application) which will enable IRCC to obtain information from CRA "to determine if you meet the income tax filing requirement" . . . and, actually, this is also used to determine if the applicant meets the "physical presence requirement."

The applicant does NOT need to submit any documentation regarding tax filings. NO NOAs.

Longer explanation below.

Hello everybody,

I have a problem and I hope you can help me. I got my PR and moved to Canada in 2017 July so I have been in Canada more than 1095 days. I have not worked in Canada in 2017 but worked in 2018 and 2019. In 2017, I have worked only in back in my country. When I started to gather documents for my application, I noticed that I have Notice of Assessments for 2018 and 2019 but don't have it for 2017. When I asked our family accountant who did our taxes, he told me that based on the information my Canadian partner provided, I was not deemed to be a resident of Canada in 2017 as a result, no return was filed and there is no basis on which to file one now. He told me that for purposes of my citizenship application, I should provide my existing notices of assessment (2018 and 2019) and indicate there is no 2017 assessment given I was not a resident of Canada in that year. But my thinking is that this may result a rejection on my application. How can I count my 2017 days if I was not reported as a resident to CRA? There is nothing that have been filed for my 2017. I have been told by someone else that maybe I should send a letter or fax to CRA to change the status of myself for 2017 and file taxes even if no income made in Canada. I have also been told that this may take a very long time.

What should I do? Should I just apply with 2018 and 2019 assessments indicating that I was not deemed to be a resident for tax purposed? Or should I reach out to CRA to correct my status and then apply? Can I apply for citizenship right after I reached out to CRA so that I can provide corrected documents during my application?

Any help is appreciated as I am clueless right now.

Thanks for reading and have a great day!

The post by @mbaleine covers it generally:

What utter nonsense. Physical residency is not the same as residency for tax purpose. If you had no income and did not otherwise owe tax, you were not required to file income tax. You can, but you are not required to. Read the fine prints in those tax instructions. Just indicate that you were not required to file tax for 2017 on the application form.

But @mbaleine was right, and more nonsense has followed. Indeed . . . Wow. Wow. Wow. There is indeed a lot of nonsense posted here. Disappointing. Disheartening.



Longer and More detailed explanation:

NOTE: Again, it is NOT necessary to submit Notices of Assessment to IRCC with a Citizenship Application.

Actually, there is NO requirement to even file a tax return for all years the applicant was required to file a return: to be eligible for citizenship, the PR must have met the CRA tax filing requirements for just three out of the previous five TAX years. Any year in which the applicant was not required to file a return counts as a year of compliance, whether or not a tax return was filed.

See Item 12.b) in the current application form. The applicant declares two things for each of the relevant tax years.

-- Was the applicant required to file a return for that year, yes or no.​

-- Did the applicant file a tax return for that year, yes or no.​

For someone applying in 2020 the relevant tax years are 2015, 2016, 2017, 2018, 2019.

For any year the applicant checks "No-No" or "Yes-Yes" or "No-Yes" that year counts as a year in compliance.

Only a year for which the applicant checks "Yes-No" (meaning yes, the applicant was required to file a return but the applicant did not file a tax return for that year), will that year count as a year NOT in compliance.

A person who first arrived in Canada in, say, mid-July 2017, and had no Canadian source income in 2017, would most likely NOT be required to file a tax return for 2017. But each individual needs to figure out for himself or herself whether a tax return is required or whether to file a return even if one was not required. As others have referenced, there are multiple factors involved. Some more important than others. Canadian source income, for example, generally triggers the need to file a return. Residency is a big factor but just a factor, and for tax purposes a person is not deemed a resident unless they have been IN Canada more than 183 days during that tax year (for almost all this is the same as the calendar year).

The post by @s23srinivas contains good information with relevant, informative links. EXCEPT, @s23srinivas ERRONEOUSLY refers to "fulfilling the requirement of 3 NOAs." There is NO such requirement.

Going back to the person who first arrived in Canada in, say, mid-July 2017, and had no Canadian source income in 2017, and who can otherwise truthfully check "No" not required to file a tax return for 2017. This individual can check "No-No" for 2015, 2016, and 2017. That will meet the requirement to have complied with Canadian tax filing requirements for THREE of the preceding FIVE tax years, for an applicant applying in 2020, NO MATTER what the applicant declares for 2018 and 2019. Even if the applicant was REQUIRED, by CRA rules, to file a return for 2018 and 2019, but did NOT, and thus must check "Yes-No" for both 2018 and 2019, this individual still meets the requirement for citizenship. THIS IS NOT RECOMMENDED. Indeed, the best approach is to show compliance in ALL five years, even if eligibility only requires compliance for three of the five years.


Caveats:

As noted, whether or not an individual is required to file a return depends on many factors. Each individual needs to follow the CRA rules and determine this for himself or herself.

Generally accountants can be relied on for making this determination. The accountant referenced here was, apparently, wrong about what is needed to meet the citizenship requirements (again, NO NOAs are submitted with the application) BUT that is not surprising, accountants know tax rules not immigration and citizenship rules.

 

[Mexontario]

Citizenship applicants do NOT need to submit copies of any NOAs with a citizenship application.

The applicant MUST give consent to IRCC and CRA (this is in item 12.c) in the application) which will enable IRCC to obtain information from CRA "to determine if you meet the income tax filing requirement" . . . and, actually, this is also used to determine if the applicant meets the "physical presence requirement."

The applicant does NOT need to submit any documentation regarding tax filings. NO NOAs.

Longer explanation below.



The post by @mbaleine covers it generally:



But @mbaleine was right, and more nonsense has followed. Indeed . . . Wow. Wow. Wow. There is indeed a lot of nonsense posted here. Disappointing. Disheartening.



Longer and More detailed explanation:

NOTE: Again, it is NOT necessary to submit Notices of Assessment to IRCC with a Citizenship Application.

Actually, there is NO requirement to even file a tax return for all years the applicant was required to file a return: to be eligible for citizenship, the PR must have met the CRA tax filing requirements for just three out of the previous five TAX years. Any year in which the applicant was not required to file a return counts as a year of compliance, whether or not a tax return was filed.

See Item 12.b) in the current application form. The applicant declares two things for each of the relevant tax years.

-- Was the applicant required to file a return for that year, yes or no.​

-- Did the applicant file a tax return for that year, yes or no.​

For someone applying in 2020 the relevant tax years are 2015, 2016, 2017, 2018, 2019.

For any year the applicant checks "No-No" or "Yes-Yes" or "No-Yes" that year counts as a year in compliance.

Only a year for which the applicant checks "Yes-No" (meaning yes, the applicant was required to file a return but the applicant did not file a tax return for that year), will that year count as a year NOT in compliance.

A person who first arrived in Canada in, say, mid-July 2017, and had no Canadian source income in 2017, would most likely NOT be required to file a tax return for 2017. But each individual needs to figure out for himself or herself whether a tax return is required or whether to file a return even if one was not required. As others have referenced, there are multiple factors involved. Some more important than others. Canadian source income, for example, generally triggers the need to file a return. Residency is a big factor but just a factor, and for tax purposes a person is not deemed a resident unless they have been IN Canada more than 183 days during that tax year (for almost all this is the same as the calendar year).

The post by @s23srinivas contains good information with relevant, informative links. EXCEPT, @s23srinivas ERRONEOUSLY refers to "fulfilling the requirement of 3 NOAs." There is NO such requirement.

Going back to the person who first arrived in Canada in, say, mid-July 2017, and had no Canadian source income in 2017, and who can otherwise truthfully check "No" not required to file a tax return for 2017. This individual can check "No-No" for 2015, 2016, and 2017. That will meet the requirement to have complied with Canadian tax filing requirements for THREE of the preceding FIVE tax years, for an applicant applying in 2020, NO MATTER what the applicant declares for 2018 and 2019. Even if the applicant was REQUIRED, by CRA rules, to file a return for 2018 and 2019, but did NOT, and thus must check "Yes-No" for both 2018 and 2019, this individual still meets the requirement for citizenship. THIS IS NOT RECOMMENDED. Indeed, the best approach is to show compliance in ALL five years, even if eligibility only requires compliance for three of the five years.


Caveats:

As noted, whether or not an individual is required to file a return depends on many factors. Each individual needs to follow the CRA rules and determine this for himself or herself.

Generally accountants can be relied on for making this determination. The accountant referenced here was, apparently, wrong about what is needed to meet the citizenship requirements (again, NO NOAs are submitted with the application) BUT that is not surprising, accountants know tax rules not immigration and citizenship rules.

Alright, long explanation. NOA's are not required, but filing taxes is required. Thats what I meant.

 

[s23srinivas]

Citizenship applicants do NOT need to submit copies of any NOAs with a citizenship application.

The applicant MUST give consent to IRCC and CRA (this is in item 12.c) in the application) which will enable IRCC to obtain information from CRA "to determine if you meet the income tax filing requirement" . . . and, actually, this is also used to determine if the applicant meets the "physical presence requirement."

The applicant does NOT need to submit any documentation regarding tax filings. NO NOAs.

Longer explanation below.



The post by @mbaleine covers it generally:



But @mbaleine was right, and more nonsense has followed. Indeed . . . Wow. Wow. Wow. There is indeed a lot of nonsense posted here. Disappointing. Disheartening.



Longer and More detailed explanation:

NOTE: Again, it is NOT necessary to submit Notices of Assessment to IRCC with a Citizenship Application.

Actually, there is NO requirement to even file a tax return for all years the applicant was required to file a return: to be eligible for citizenship, the PR must have met the CRA tax filing requirements for just three out of the previous five TAX years. Any year in which the applicant was not required to file a return counts as a year of compliance, whether or not a tax return was filed.

See Item 12.b) in the current application form. The applicant declares two things for each of the relevant tax years.

-- Was the applicant required to file a return for that year, yes or no.​

-- Did the applicant file a tax return for that year, yes or no.​

For someone applying in 2020 the relevant tax years are 2015, 2016, 2017, 2018, 2019.

For any year the applicant checks "No-No" or "Yes-Yes" or "No-Yes" that year counts as a year in compliance.

Only a year for which the applicant checks "Yes-No" (meaning yes, the applicant was required to file a return but the applicant did not file a tax return for that year), will that year count as a year NOT in compliance.

A person who first arrived in Canada in, say, mid-July 2017, and had no Canadian source income in 2017, would most likely NOT be required to file a tax return for 2017. But each individual needs to figure out for himself or herself whether a tax return is required or whether to file a return even if one was not required. As others have referenced, there are multiple factors involved. Some more important than others. Canadian source income, for example, generally triggers the need to file a return. Residency is a big factor but just a factor, and for tax purposes a person is not deemed a resident unless they have been IN Canada more than 183 days during that tax year (for almost all this is the same as the calendar year).

The post by @s23srinivas contains good information with relevant, informative links. EXCEPT, @s23srinivas ERRONEOUSLY refers to "fulfilling the requirement of 3 NOAs." There is NO such requirement.

Going back to the person who first arrived in Canada in, say, mid-July 2017, and had no Canadian source income in 2017, and who can otherwise truthfully check "No" not required to file a tax return for 2017. This individual can check "No-No" for 2015, 2016, and 2017. That will meet the requirement to have complied with Canadian tax filing requirements for THREE of the preceding FIVE tax years, for an applicant applying in 2020, NO MATTER what the applicant declares for 2018 and 2019. Even if the applicant was REQUIRED, by CRA rules, to file a return for 2018 and 2019, but did NOT, and thus must check "Yes-No" for both 2018 and 2019, this individual still meets the requirement for citizenship. THIS IS NOT RECOMMENDED. Indeed, the best approach is to show compliance in ALL five years, even if eligibility only requires compliance for three of the five years.


Caveats:

As noted, whether or not an individual is required to file a return depends on many factors. Each individual needs to follow the CRA rules and determine this for himself or herself.

Generally accountants can be relied on for making this determination. The accountant referenced here was, apparently, wrong about what is needed to meet the citizenship requirements (again, NO NOAs are submitted with the application) BUT that is not surprising, accountants know tax rules not immigration and citizenship rules.

I stand corrected. Thanks for your effort.

 

[dpenabill]

Alright, long explanation. NOA's are not required, but filing taxes is required. Thats what I meant.

Filing taxes is ONLY required IF CRA rules require it. Moreover, that is about CRA rules.

Meeting the requirements for citizenship does NOT require filing a tax return unless the applicant is required to do so according to CRA rules.

AND EVEN THEN an applicant can fail to have filed (even though required under CRA rules) for TWO of the FIVE relevant tax years. So it is easily conceivable that a Permanent Resident can meet the requirements for citizenship without ever having filed any Canadian tax return.

Whether a PR can meet the eligibility requirements for complying with CRA tax filing rules (again, for a minimum three of the relevant five years) NEVER having filed a Canadian tax return depends on whether for at least THREE of the FIVE years the PR was required to file a return, which in turn depends on how many years --

-- the applicant had Canadian source income, or​

-- was a resident for tax purposes, and if a resident met some other criteria requiring the filing of a return for each of those years, or​

-- otherwise was required to file a return (such as CRA notified the individual a return needed to be filed)​

​

Regarding "long explanation:"

I generally stopped providing input relative to the more simple questions and for a few years have focused ONLY on a small number of more complicated matters demanding in-depth explanations. Thus, for example, the query posed here is one I would NOT ordinarily address. As previously noted, the response by @mbaleine and the links provided by @s23srinivas sufficiently cover the rather simple question. BUT the extent of misinformation posted here, however, demanded a more strident clarification, and since I am NOT an expert, I reference sources and explain in detail so that no one needs to rely on me personally.

 

[dpenabill]

For the CRA's information about who needs to file a Canadian tax return, see:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-have-file-a-return.html

Also see:
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html

This is incorrect advise. You’re required to file income tax if you’re a resident of Canada for income tax purposes. It is irrelevant if you had no income, you file as 0 income. Filing the taxes will make sure any benefits like GST the person is entitled to would be calculated. In fact, a 0 income means they will definitely be getting GST. The poster is the one that makes that decision on if they are a resident of Canada for tax purposes. If they moved to Canada permanently as a PR in July, that’s a strong indication they are now residents for tax purposes as of 2017. They can file it electronically.

This fails to distinguish when a resident is REQUIRED to file a return versus circumstances in which a resident SHOULD file a return (that is, MAY WANT to file a return) but is not necessarily required to do so.

NO. Just being a resident of Canada does NOT, not by itself, mean an individual is required to file a Canadian tax return.

For example, an individual can have an income up to the basic personal amount (the BPA is currently more than $12k Canadian) and NOT be required to file a return.

Yes, there are a number of factors, in addition to and apart from having income subject to taxation, which trigger the requirement to file a return . . . including receiving certain benefits.

And, sure, there are other circumstances in which a resident SHOULD file a return, even if not required to do so, and here too this includes eligibility for certain benefits.

But a resident with an income less than the BPA (let alone a zero income) will NOT be required to file a return UNLESS one of the other triggers requiring the filing of a return applies. Many of those other things are discretionary, a matter of what the individual chooses. Again, see https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-have-file-a-return.html

There are, by the way, millions of Canadian residents who do not file tax returns. Mostly children, sure, but not just children, and to be clear, children are not exempt from the requirements to file a tax return if they otherwise meet the criteria requiring an individual to file a return, much the same as adults.

 

[vision86]

Thank you very much for those who responded. Our accountant agreed to file my 2017 return. I will apply for citizenship once it is processes.

Have a great day!