Filling taxes, spouse outside Canada

[scel]

Good day,

My family landed in Canada in April last year but spouse went bank to home country though he comes to see me and children often. For tax purpose spouse is a resident of Canada. Yes or No?

If yes, are we going to file as individuals or as a couple? Please know that only spouse in working in home country though with a company that operates also in Canada. I am not working, just registered a company last month.

Please advise.

 

[kiwi1959]

(based on a true story in Tax court) Similar Scenario.
If you have a job or part-time job, then you proceed separately:
- You must file for yourself (and children) without hiding anything, just be fare.
if you can prove that you came with or still have some money (less than 100,000 CAD) back home) is good point for you.
- He should not file until he comes for real (in the meantime, it must be short visits to see you, no long stay, no Canadian bank acct in his name nor Credit Card). Must stamp his passport when going out and keep boarding passes for later proof.
If he files once, then no way back.

Good lack

 

[Amadan123]

Hello scel,

Your spouse may be a resident of Canada for tax purposes depending on the facts of the situation.

To determine residency, one must look at primary ties to Canada, which include having a house and a family in Canada. It also depends on how long the spouse stayed since they came in April. Determining residency is extremely important - you want to know if the spouse is considered a resident so you can fulfill your reporting obligations adequately; especially because failure to file and report income when you are a resident can have great consequences.

The way you file your tax returns depends on whether or not your spouse is a resident of Canada. If your spouse is deemed to be a resident of Canada, then your spouse must file a tax return in Canada, reporting their worldwide income.

You should note that it will be impossible to conclude on this based on limited information. I hope this helps.

Madan Chartered Accountant team
madanca.com

 

[scel]

Thanks Amadan123 and Kiwi1959 for responding.

My spouse does not have a house in Canada but sure have his family (the kids and I) in Canada. I surely will file my tax and I guess he has to too as he'll be termed a resident.

 

[torontosm]

(based on a true story in Tax court) Similar Scenario.
If you have a job or part-time job, then you proceed separately:
- You must file for yourself (and children) without hiding anything, just be fare.
if you can prove that you came with or still have some money (less than 100,000 CAD) back home) is good point for you.
- He should not file until he comes for real (in the meantime, it must be short visits to see you, no long stay, no Canadian bank acct in his name nor Credit Card). Must stamp his passport when going out and keep boarding passes for later proof.
If he files once, then no way back.

Good lack

I'm sorry, but this is just wrong information. The spouse has clear residential ties to Canada (spouse + dependents) and likely has some assets in his. As a result, he will most probably be deemed a resident for tax purposes and his income will be subject to taxation in Canada.

Encouraging people to misrepresent things for the purposes of evading taxes and breaking laws is irresponsible.

 

[Amadan123]

Agree with torontosm.

The last thing you want to do is not file his tax return, thinking he is not a resident, and then getting letters from the CRA levying penalties for not reporting the required information.

Residency should be taken very seriously, and you should look at it closely.

Madan Chartered Accountant team
madanca.com