Citizenship application - are they gonna audit my taxes?

[MariaSut]

I'm submitting my citizenship application soon and am struggling with the question about taxes. I moved to Canada in December 2014 and filed taxes for these years:

- 2014 - didn't file taxes, didn't have any income, moved to Canada in December
- 2015 - filed taxes
- 2016 - filed taxes
- 2017 - filed taxes

Qestion #1 - This should qualify me for getting a citizenship, correct? I filed taxes at least three times. Could I be in trouble for not filing taxes for 2014?

Now there is one other issue... I am aware that I filed my 2015 taxes incorrectly (ooops). In January 2015 I got a job as an unpaid intern and later on I found out that in Ontario interns must be paid (I know there are some exceptions but it wasn't my case). I quit the job and eventually made the company to pay me for the one month, it was around $1,800. However I'm not sure if they deducted taxes from my salary and I never received T4 from this company. I didn't include this income when I filed taxes for 2015 - I know, my mistake but it happened.

Question #2 - Could this be the reason to decline my citizenship application? Are they gonna do tax audit? And if so, would they just ask me to re-file taxes for 2015 and pay whatever I owe + interest, or whould they decline my citizenship application immediately?

Thanks!!
Maria

 

[badar14]

I'm submitting my citizenship application soon and am struggling with the question about taxes. I moved to Canada in December 2014 and filed taxes for these years:

- 2014 - didn't file taxes, didn't have any income, moved to Canada in December
- 2015 - filed taxes
- 2016 - filed taxes
- 2017 - filed taxes

Qestion #1 - This should qualify me for getting a citizenship, correct? I filed taxes at least three times. Could I be in trouble for not filing taxes for 2014?

Now there is one other issue... I am aware that I filed my 2015 taxes incorrectly (ooops). In January 2015 I got a job as an unpaid intern and later on I found out that in Ontario interns must be paid (I know there are some exceptions but it wasn't my case). I quit the job and eventually made the company to pay me for the one month, it was around $1,800. However I'm not sure if they deducted taxes from my salary and I never received T4 from this company. I didn't include this income when I filed taxes for 2015 - I know, my mistake but it happened.

Question #2 - Could this be the reason to decline my citizenship application? Are they gonna do tax audit? And if so, would they just ask me to re-file taxes for 2015 and pay whatever I owe + interest, or whould they decline my citizenship application immediately?

Thanks!!
Maria

Hi Maria

For Citizenship

• you have to filed personal income taxes for at least 3 years within the 5 year period, if required under the Income Tax Act

They are not going to Audit as taxes are with CRA only. They will just verify the filing.

On other note you are legally bound to file the tax even with Zero Income. You can still file it either via online or via some consultant.

Check following guide

https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/guide-0002-application-canadian-citizenship-under-subsection-5-1-adults-18-years-older.html

Good Luck

 

[MariaSut]

Hi Maria
On other note you are legally bound to file the tax even with Zero Income. You can still file it either via online or via some consultant.

I know I know I filed taxes for 2014 in my home country so I didn't figure that I'd have to file taxes in Canada too. I'll try to file it now but from what I understand I should be safe even without it, right?

Thank you very much for your help!
M.

 

[badar14]

I'm submitting my citizenship application soon and am struggling with the question about taxes. I moved to Canada in December 2014 and filed taxes for these years:

- 2014 - didn't file taxes, didn't have any income, moved to Canada in December
- 2015 - filed taxes
- 2016 - filed taxes
- 2017 - filed taxes

Qestion #1 - This should qualify me for getting a citizenship, correct? I filed taxes at least three times. Could I be in trouble for not filing taxes for 2014?

Now there is one other issue... I am aware that I filed my 2015 taxes incorrectly (ooops). In January 2015 I got a job as an unpaid intern and later on I found out that in Ontario interns must be paid (I know there are some exceptions but it wasn't my case). I quit the job and eventually made the company to pay me for the one month, it was around $1,800. However I'm not sure if they deducted taxes from my salary and I never received T4 from this company. I didn't include this income when I filed taxes for 2015 - I know, my mistake but it happened.

Question #2 - Could this be the reason to decline my citizenship application? Are they gonna do tax audit? And if so, would they just ask me to re-file taxes for 2015 and pay whatever I owe + interest, or whould they decline my citizenship application immediately?

Thanks!!
Maria

Below abstract from guide


Step 1 – Make sure you are eligible
To be eligible for a grant of Canadian citizenship, you must:

• be a permanent resident (landed immigrant) of Canada
• have been physically in Canada for at least 1095 days in the 5 years immediately before you apply
• have filed personal income taxes for at least 3 years within the 5 year period, if required under the Income Tax Act
• demonstrate you have knowledge of Canada (if you are between 18 and 54 years old when you apply)
• demonstrate adequate knowledge of English or French (if you are between 18 and 54 years old when you apply)
• not be under a removal order
• not be inadmissible or prohibited on criminal or security grounds

Check to make sure you’re eligible to apply

 

[ZingyDNA]

Haha I personally heard someone who didn't wanna apply for citizenship because they didn't wanna be audited. The thing is, if CRA wanna audit you, you would still be audited whether you apply for citizenship or not!

 

[EstherBarros]

On other note you are legally bound to file the tax even with Zero Income. You can still file it either via online or via some consultant.

Could you please show me where it says one is legally bound to file taxes even if with zero income? I do not believe that is the case. One CAN file taxes with zero income, but I do not think one is legally bound to do so.

 

[badar14]

Hi Maria

For Citizenship

• you have to filed personal income taxes for at least 3 years within the 5 year period, if required under the Income Tax Act

They are not going to Audit as taxes are with CRA only. They will just verify the filing.

On other note you should file the tax even with Zero Income (There is no legal obligation- I just double check- it will become legal obligation only if CR request you to file) .

Check following guide

https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/guide-0002-application-canadian-citizenship-under-subsection-5-1-adults-18-years-older.html

Good Luck

Corrections

 

[badar14]

Could you please show me where it says one is legally bound to file taxes even if with zero income? I do not believe that is the case. One CAN file taxes with zero income, but I do not think one is legally bound to do so.

Thanks

you are correct its not legal obligation unless CRA request you to file

 

[badar14]

Haha I personally heard someone who didn't wanna apply for citizenship because they didn't wanna be audited. The thing is, if CRA wanna audit you, you would still be audited whether you apply for citizenship or not!

what said in Vegas will remain in Vegas unless some one from Vegas start chanting ... haha

 

[Janjoun]

If you have 0 income, you are not required to file federal taxes unless some conditions apply to you. (Selling property, repayment due to some federal/provencial tax, ...)
Furthermore the law requires citizenship applicant to file 3 out of the 5 last years.
Provincial taxes are a different story and rules vary depending on province. But CIC are no tax auditors. They might only check that applicant has filed 3 times in last 5 years as required.

 

[EstherBarros]

If you have 0 income, you are not required to file federal taxes unless some conditions apply to you. (Selling property, repayment due to some federal/provencial tax, ...)
Furthermore the law requires citizenship applicant to file 3 out of the 5 last years.
Provincial taxes are a different story and rules vary depending on province. But CIC are no tax auditors. They might only check that applicant has filed 3 times in last 5 years as required.

My understanding of the tax situation, based on this paste below, is that one does NOT HAVE TO HAVE FILED THE TAXES if they were not required to do so (if they lived in Canada but had zero income, then they are not required by the CRA to have filed)

• have filed personal income taxes for at least 3 years within the 5 year period, if required under the Income Tax Act

 

[Janjoun]

My understanding of the tax situation, based on this paste below, is that one does NOT HAVE TO HAVE FILED THE TAXES if they were not required to do so (if they lived in Canada but had zero income, then they are not required by the CRA to have filed)

• have filed personal income taxes for at least 3 years within the 5 year period, if required under the Income Tax Act

Totally agree there but for the sake simplicity, my advice for any potential candidate for citizenship is to file 3 times at least even if income is 0.

 

[EstherBarros]

Totally agree there but for the sake simplicity, my advice for any potential candidate for citizenship is to file 3 times at least even if income is 0.

Definitely best to file/have filed the taxes!
But if you have no income, really, then it doesn't serve much- I think the point of checking CRA records is to see if one is/has been employed in Canada during the eligibility period, which further proves they were physically present in Canada.
If they were in Canada with no income (hence no employment history), having filed taxes doesn't really help there.

 

[Copingwithlife]

I'm submitting my citizenship application soon and am struggling with the question about taxes. I moved to Canada in December 2014 and filed taxes for these years:

- 2014 - didn't file taxes, didn't have any income, moved to Canada in December
- 2015 - filed taxes
- 2016 - filed taxes
- 2017 - filed taxes

Qestion #1 - This should qualify me for getting a citizenship, correct? I filed taxes at least three times. Could I be in trouble for not filing taxes for 2014?

Now there is one other issue... I am aware that I filed my 2015 taxes incorrectly (ooops). In January 2015 I got a job as an unpaid intern and later on I found out that in Ontario interns must be paid (I know there are some exceptions but it wasn't my case). I quit the job and eventually made the company to pay me for the one month, it was around $1,800. However I'm not sure if they deducted taxes from my salary and I never received T4 from this company. I didn't include this income when I filed taxes for 2015 - I know, my mistake but it happened.

Question #2 - Could this be the reason to decline my citizenship application? Are they gonna do tax audit? And if so, would they just ask me to re-file taxes for 2015 and pay whatever I owe + interest, or whould they decline my citizenship application immediately?

Thanks!!
Maria

Did they give you a T4A, this would be for income for a non employee? Regardless whether they gave you a T slip or not, you did not declare income on your 2015 return. The CRA does not use the term "oops", when it comes to non declared income. You are aware you did not report the income, then you would have to contact the CRA and have your 2015 T1 personal income tax return adjusted to include that income and pay any applicable interest, penalties. Also when did they ACTUALLY pay you the money? It is when money is received, not earned depends what year you would report that income. You may have worked in 2015, but received the money for example in 2017, you would report that income in the 2017 tax year, not 2015
A little bit off topic, however the government does not if you are eligible for certain benefits UNLESS you file your personal incomes taxes. For example, the GST/HST tax credit, that is based upon income declared on your Personal Income Tax Return. By failing to file that return the government does not know if you are eligible or not.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4a-information-payers/t4a-slip/what-report-exceptions.html

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-104-other-employment-income/line-104-employment-income-reported-on-a-t4-slip.html

 

[Janjoun]

The real purpose of checking the tax declarations is to prove your employment and attachment to canada but the law only requires physical presence, so if you have good proofs for that, proving attachment is irrelevant. However the law is clear and requires filing of 3 out 5 years in case you are required to file. Meaning CIC officers would be within their right to refer your application to a citizenship judge if you don't supply those 3 filing years and officer deems you were required to file.

Even though CIC rarely checks this, spare yourself the trouble and file for taxes even with 0 income. There are also other advantages to filing your taxes with 0 income, so potential applicants, just do it.