Do I need to file taxes in Canada?

[mrbeachman]

Yeah, because more than often the people that come to Canada and become permanent resident is going to stay here, however if after let's say one week you left for 2 years (as I, myself, did ) obviously you are not residing, you don't have ties so you are not a resident for tax purposes.

And according to the law, if you don't have to pay taxes there is not obligation to declare your income neither.

CRA does not care if you reside or not or if you live less than 183 days nonsense.. They look at the ties you have in Canada. If you have any member of the immediate family, a condo a car or even a safety deposit box in Canada they may or may not consider you as a factual resident. No one here knows and there is no clear cut case. You are pretty much at their mercy.

 

[cooldoc80]

what do you mean by a safety deposit box , is this a bank account ?

 

[steaky]

what do you mean by a safety deposit box , is this a bank account ?

That's a box you rent in a bank to store your valuables such as jewelries and passport.

 

[cooldoc80]

thanks steaky

so if my wife rent one for herself and put her jewelry in it and dosent work ( as she would be studying) , does this mean she should pay taxes ??

and regarding me , i would be working outside of canada for a couple of years so does this safety box would entitle me to pay tax on my world income ?

thanks

 

[steaky]

thanks steaky

so if my wife rent one for herself and put her jewelry in it and dosent work ( as she would be studying) , does this mean she should pay taxes ??

and regarding me , i would be working outside of canada for a couple of years so does this safety box would entitle me to pay tax on my world income ?

thanks

Like other members had said, whether or not you pay tax on your world income due to these residential ties is pretty much at CRA's mercy. Phone them to be certain.

 

[neutral]

CRA does not care if you reside or not or if you live less than 183 days nonsense.. They look at the ties you have in Canada. If you have any member of the immediate family, a condo a car or even a safety deposit box in Canada they may or may not consider you as a factual resident. No one here knows and there is no clear cut case. You are pretty much at their mercy.

Again, you add information to make conclusions. The OP has not mentioned that he has family here.
So, I've to assume that he's single. Then, a single person who DOESN'T live in Canada is not a resident for tax purposes general speaking .

The fact of having a single deposit box is NO WAY indication that you reside here, starting with the fact that CRA doesn't know that, stop with the paranoia. A condo is another history.

 

[neutral]

so if my wife rent one for herself and put her jewelry in it and dosent work ( as she would be studying) , does this mean she should pay taxes ??

and regarding me , i would be working outside of canada for a couple of years so does this safety box would entitle me to pay tax on my world income ?

thanks

Firstly, it's important to know which country you're going to stay. Several countries have tax agreements with Canada to avoid double taxation (paying taxes in both countries).

Secondly, it depends on many other factors. Are you going to send her money monthly? Is she going to need any government credit or help?

If she declares her income, she has to declare yours also as her husband, even if you are not resident.

Best advice: When it's time for filing income declaration, your wife should look for advice with an accountant that will take in account your whole situation.

 

[keesio]

Yeah, because more than often the people that come to Canada and become permanent resident is going to stay here, however if after let's say one week you left for 2 years (as I, myself, did ) obviously you are not residing, you don't have ties so you are not a resident for tax purposes.

The reason why CRA considers you a tax resident for the year you land is because you are expected to reside in Canada after landing. Why do you think Canadian citizens who sponsor their spouse from abroad have to provide a concrete plan on how both sponsor and applicant will return to Canada when the applicant gets approval to land? It is called "intent to reside". There have been applicants who have been denied because they didn't have a concrete plan to reside in Canada after the applicant becomes a PR.

Of course nothing will stop you from leaving Canada right after becoming a PR and many people do land without any real intent to reside in Canada for awhile. But you can understand why CRA considers you a resident based on your declared intent

 

[neutral]

The reason why CRA considers you a tax resident for the year you land is because you are expected to reside in Canada after landing. Why do you think Canadian citizens who sponsor their spouse from abroad have to provide a concrete plan on how both sponsor and applicant will return to Canada when the applicant gets approval to land? It is called "intent to reside". There have been applicants who have been denied because they didn't have a concrete plan to reside in Canada after the applicant becomes a PR.

Of course nothing will stop you from leaving Canada right after becoming a PR and many people do land without any real intent to reside in Canada for awhile. But you can understand why CRA considers you a resident based on your declared intent

Yeah, It's what I said. I agree with that.
But at the end, we have to analyze every particular situation. I didn't file taxes even if I had landed, because I left Canada. Accountants I consulted agree and never had problems with CRA.

 

[cooldoc80]

Dear Neutral , thanks alot for your information , its true that all what we say is mentioned in CRA site , but people like you who make it simplified and easier for rest to understand the core meaning of theses laws ...

regarding the questions you asked me

1st I dont reside in a country that has a tax treaty with canada , actually the taxes we pay here are almost nill to what we earn

2nd : my wife would be studying in Canada for atleast 2 years in order to get her license , so she would not get an income ..Upon landing I intend to put a big sum of money in her account which would be enough to cover living expenses for next 2 years

- my wife will not live continuously in the next 2-3 years in canada , she would just be there 6 month/Year

- for me , i would be working in my country of origin and visit her frequently whenever i can ( 3 month /year )

- my wife will apply for (health insurance , open bank account and rent an apartment

- I will only have PR and social security number

I hope you could advise me based on the above information

bless you




regarding

 

[keesio]

Dear Neutral , thanks alot for your information , its true that all what we say is mentioned in CRA site , but people like you who make it simplified and easier for rest to understand the core meaning of theses laws ...

regarding the questions you asked me

1st I dont reside in a country that has a tax treaty with canada , actually the taxes we pay here are almost nill to what we earn

2nd : my wife would be studying in Canada for atleast 2 years in order to get her license , so she would not get an income ..Upon landing I intend to put a big sum of money in her account which would be enough to cover living expenses for next 2 years

- my wife will not live continuously in the next 2-3 years in canada , she would just be there 6 month/Year

- for me , i would be working in my country of origin and visit her frequently whenever i can ( 3 month /year )

- my wife will apply for (health insurance , open bank account and rent an apartment

- I will only have PR and social security number

I hope you could advise me based on the above information

bless you




regarding

Your spouse will be a significant tie to Canada and you will likely need to file taxes and report your income. If there is no tax treaty and the taxes you pay are almost nil, you will likely have to pay the diff to CRA. Not sure all the details. Hopefully someone more knowledgeable can confirm

 

[mrbeachman]

Again, you add information to make conclusions. The OP has not mentioned that he has family here.
So, I've to assume that he's single. Then, a single person who DOESN'T live in Canada is not a resident for tax purposes general speaking .

The fact of having a single deposit box is NO WAY indication that you reside here, starting with the fact that CRA doesn't know that, stop with the paranoia. A condo is another history.

It's not paranoia. You should read some court decisions and CRA publications.

In any case, I would agree that if you have one or two secondary ties you are probably safe.

 

[neutral]

Dear Neutral , thanks alot for your information , its true that all what we say is mentioned in CRA site , but people like you who make it simplified and easier for rest to understand the core meaning of theses laws ...

regarding the questions you asked me

1st I dont reside in a country that has a tax treaty with canada , actually the taxes we pay here are almost nill to what we earn

2nd : my wife would be studying in Canada for atleast 2 years in order to get her license , so she would not get an income ..Upon landing I intend to put a big sum of money in her account which would be enough to cover living expenses for next 2 years

- my wife will not live continuously in the next 2-3 years in canada , she would just be there 6 month/Year

- for me , i would be working in my country of origin and visit her frequently whenever i can ( 3 month /year )

- my wife will apply for (health insurance , open bank account and rent an apartment

- I will only have PR and social security number

I hope you could advise me based on the above information

bless you

regarding

So, your wife is going to study with your money, not asking for a loan.

Your wife doesn't have the obligation to declare income as she doesn't have to pay taxes. However, you'd have enough ties with Canada to be considered resident for tax purposes. Your wife lives in Canada and you will come frequently.

"If an individual who is married or cohabiting with a common-law partner leaves Canada, but his or her spouse or common-law partner remains in Canada, then that spouse or common-law partner will usually be a significant residential tie with Canada during the individual's absence from Canada."

Now, if she starts studying before you go back to your country you could have some options:

"An exception to this will occur where the individual was resident in another country prior to entering Canada and is leaving to re-establish his or her residence in that country. In this case, the individual will generally become a non-resident on the date he or she leaves Canada, even if, for example, the individual's spouse or common law partner remains temporarily behind in Canada or so that their dependants may complete a school year already in progress."

If you want to have peace in mind, you can fill out this form once you left Canada so CRA could determine your status: http://www.cra-arc.gc.ca/E/pbg/tf/nr73/nr73-12e.pdf

Take care.

 

[reikiprince]

Hello

We became Canada PR in Sep 2014. One year has passed and my wife and 6 year old child will go back to Canada and my wife will start working there. I will continue to be in UAE which is a tax free country.

My questions on taxation is as follows:

1) Obviously my wife has to pay taxes on her own Canada salary income. But does she have to show her husband's UAE income in her tax return. Also does she have to pay tax on her husband's UAE income. I do not pay taxes in UAE and there is no tax treaty between Canada and UAE.

2) If she conceals her husband's income and pays taxes only on her Canada SALARY income will she get into any trouble. I mean do they really bother to check overseas income of husbands even if she is not taking even 1 CAD in social security from Canada government. What she should show on her tax return as husband's income.

Basically I don't want to pay taxes on my UAE income to Canada government.

3) Do I need to file a tax return in Canada if I am not staying there and only my wife and child are staying there and if yes do I need to club it with my wife's tax return.

4) Is there any link you can suggest where Canada government gives step by step instruction on filing tax returns and calculation.

regards
reikiprince

 

[keesio]

I'm not a tax expert but my two cents:
1) Your wife is responsible for paying taxes on her income only.
2) See #1
3) Your wife and child is an obvious strong tie to Canada and CRA will likely see you as a tax resident. hence you will have to file taxes to CRA
4) See CRA's main page: http://www.cra-arc.gc.ca/menu-eng.html