Back Taxes and PR Obligations

[Alabaman]

I have some questions regarding back taxes and PR Obligations.

1. Will Canada Revenue require you to pay back taxes if you are a landed immigrant but did not move to Canada to live until 3 years after you landed?

2.Does filling out the tax form NR-74 (Determination of Residency Status) have a significance on your PR obligation? In other words, will Immigration refer to this form (and your taxes) when the residency questionnaire is completed in the future?

Does any body have experience with these issues? Please post your views and comments.

Thanks.

 

[Leon]

You don't have to pay any tax in Canada for years you were not living in Canada.

 

[Suin]

and if one is living in Canada, but doesn't work?

 

[Leon]

and if one is living in Canada, but doesn't work?

In that case you should file taxes but you will not be paying any. You can even get some GST refunds if you are not making a lot of money.

 

[taxguy]

Canada taxes worldwide income based on residency as opposed to immigration status. Once you have established residency (either you are here 183 days or you literally move here, open a bank account, rent or buy a home etc.).

The tax then is based on income earned from the date you became a resident forward.

 

[wizardhigh]

What about countries who has tax treaty with Canada? I understand income from those countries are noy subject to
woldwide tax ?Any advice.

Thanks

 

[toby]

Not exactly. Each tax treaty is different, but the underlying principle is to avoid taxing you on the same income in both countries. So, if you are taxable on worldwide income in Canada, but you paid taxes to a different tax-treaty country, you show Canada your tax assessment for the other country, and deduct those taxes from taxes you would otherwise owe to Canada.

If the taxes paid elsewhere were lower than you'd pay in Canada (a distinct possibility), then you pay the difference to Canada. If the reverse is true, you don't get a break.

 

[Jhun]

I have some questions regarding taxes and PR Obligations.

We landed last May 2008 and we all left Canada after 30 days. During our short stay there, I opened bank account and kept some money. Now, we are planning to come back to Canada for good this July, and for that reason I have the following questions.

1. Do we have to pay taxes for the money we kept in the bank? (The bank sent me mail asking me to pay tax).

2. Do we have to pay taxes for the salary we received during our stay outside Canada?

3. Can we still bring all the items we brought last time (during landing) without paying taxes?

4. During our almost 2 years stay outside Canada, we bought some personal items like jewelries and electronics, do we have to pay
taxes for these eventhough we are outside Canada for almost 2 years now?

5. Approximately, how much will be tax for electronics and jewelries worth $3000

Thanks in advance

 

[toby]

You don't have to pay any tax in Canada for years you were not living in Canada.

Leon: I do believe that if the PR is outside Canada, he is nevertheless taxable on any income generated inside Canada -- even if he lives outside Canada.

Living outside Canada (not having access to a residence in Canada throughout the year, and not being in Canada 183+ days in the year), he is not taxable on income earned outside Canada.

 

[toby]

I have some questions regarding taxes and PR Obligations.

We landed last May 2008 and we all left Canada after 30 days. During our short stay there, I opened bank account and kept some money. Now, we are planning to come back to Canada for good this July, and for that reason I have the following questions.

1. Do we have to pay taxes for the money we kept in the bank? (The bank sent me mail asking me to pay tax).

Comment: Yes. You are taxable on the interest earned -- though your income may be less than the $10,000 (approximate) personal exemption, hence no taxes to pay.

2. Do we have to pay taxes for the salary we received during our stay outside Canada?

Comment: No, as long as you had no access to a home in Canada during the time spent outside Canada, and provided you were no in Canada more than 183 days per year.

3. Can we still bring all the items we brought last time (during landing) without paying taxes?

Comment: I think so; if they are personal (used) items.


4. During our almost 2 years stay outside Canada, we bought some personal items like jewelries and electronics, do we have to pay
taxes for these even though we are outside Canada for almost 2 years now?

Again, I don't believe so. Just document them well (serial numbers; photos of jewelry with an appraisal or sales receipt if you have one) on the list of items you bring with you to Canada, or on the list of goods to follow.

5. Approximately, how much will be tax for electronics and jewelries worth $3000

Don't know; don't want to guess. Sorry.

Thanks in advance