Entire Income From Overseas

[Grum]

Hi I just landed yesterday from Australia and was wondering if someone would be able to answer a few questions?

I am employed by an Australian company who pays my salary into my Australian bank account. I also have a rental property in Australia with a mortgage which is about the same as rental income each month.

1) Do i have to pay into CCP and or EI?

2) Does my employer have to pay into CCP? (think there was something about 50% from each?)

3) Should i settle my taxes in Canada first then use FTC in my Australian tax return? or the other way around.

4) Does Canada treat interest for mortgage of an investment property as a tax deduction?

5) Does CRA require monthly payments of tax if income is coming from overseas? or can i keep my tax portion invested and then just have a huge tax bill each year?

Cheers

Graham

 

[steaky]

Are you going to live in Canada permanently or will return to Australia shortly?

If latter, you don't need to worry Canadian taxes for now.

 

[Grum]

Are you going to live in Canada permanently or will return to Australia shortly?

If latter, you don't need to worry Canadian taxes for now.

Sorry I should of said landed as a permanent resident

 

[steaky]

Sorry I should of said landed as a permanent resident

Even so, you can still return to Australia after your landing. In that case, you don't need to worry about Canadian taxes for now.

 

[nekeol]

as permanant resident all cpp ei tax must be deducted from ur salary and all tax laws must be followed,
ur return will be submitted in next year March or april

although ur salary is in australia but u r resident of canada in terms of tax. u must pay taxes here and also report in australia as u r resident of australia.
in ur case u have to read the treaty between canada and australia to avoid duel taxation.

I m writing with respect of ur canadain residency, in canada u must have to file tax return every year

 

[steaky]

although ur salary is in australia but u r resident of canada in terms of tax.

OP has not yet establish his tax resident status despite his landing couple days ago. I would just cut and paste from the CRA website:

[quote author=http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html]
Residency status

Non-residents

You are a non-resident for tax purposes if you:

normally, customarily, or routinely live in another country and are not considered a resident of Canada; or
do not have significant residential ties in Canada; and
you live outside Canada throughout the tax year; or
you stay in Canada for less than 183 days in the tax year.
[/quote]

Therefore, if it is the case, then he don't need to worry about Canadian taxes (including EI and CPP) for now.

 

[Grum]

I will be living in Canada indefinitely so will be a resident for tax purposes.

 

[nekeol]

I will be living in Canada indefinitely so will be a resident for tax purposes.

any landed immigrant, any person working and getting salary even not living in canada but getting payroll from canada, any student working, or temporary resident workers all has to pay taxes including any company registeed in canada or doing business in Canada must file tax return.
if u r immigrant then it is necessary to file to get ur kids benefits for next year

 

[Grum]

I had a chat with a local accountant here and they informed me that my employer would have to pay his contribution into CPP as well as withholding tax each pay statement, would would be very hard to get the money to CRA. So they said best option is for me to become self employed and or incorporate a business and then contract my work back to Australian company. I then file Canadian tax return for myself (worldwide income) and business (if setup) and only have to put in tax return in Australia for rental income (not my world wide income).
I will be looking into this in more detail over next week but looks like a good solution.

 

[nekeol]

I had a chat with a local accountant here and they informed me that my employer would have to pay his contribution into CPP as well as withholding tax each pay statement, would would be very hard to get the money to CRA. So they said best option is for me to become self employed and or incorporate a business and then contract my work back to Australian company. I then file Canadian tax return for myself (worldwide income) and business (if setup) and only have to put in tax return in Australia for rental income (not my world wide income).
I will be looking into this in more detail over next week but looks like a good solution.

the Accountant guided u good. try to follow his/her suggestions.
I am only doubting how to make it feasible while u will be in Australia, ur income will be coming under Australian tax as wel as canadan tax.
it is easy inside canada, if u start ur company inside canada and working as contractor from ur own company.
but I agree with ur wise accountant

 

[Grum]

I will be in Canada 100% of the time. I live here now, it is just the company i work for is based in Australia.