Income before coming to Canada

[KLRK]

Hello everyone, I have two specific questions about my tax situation here, in Canada. I would be very pleased if somebody responds in my topic.

I have been working in Canada since September 2015. Before I came here I have been working in my country and paid all of the taxes there. As far as I know I do not have to declare my foreign income (from before I came to Canada) so while filling the tax application I put "0" in the bracket "FOREIGN INCOME BEFORE COMING TO CANADA".
I was reading a lot about it and I was pretty sure that I am correct doing this.
Could anyone respond me if I'm right in this matter?

Actually the main reason I'm asking this question is that I got an email from CRA and they're asking me about the income from my country before I came to Canada cause they want to "calculate the amount of HSTC/GST I may be entitled to receive for July 2016 to April 2017" (they mean my world income, converted to Canadian dollars before I came to CA)

I did a lot of research in that matter but the letter they send me freightened me a little because now I'm thinking that perhaps I should have tell them my foreign income.

Could anyone help please? Thank you.

 

[Naheulbeuck]

Yes you should have, you do not have to pay taxes on it but it is calculated to determine your yearly income and therefore credits that you are entitled or not entitled to.

You do not need to tell them prior years however you needed to disclose your world income for 2015, since you came to Canada only in September, you should have disclosed income from January to September, before you became a resident of Canada.

 

[KLRK]

Thank you kindly for your response.
However, I am not sure if you understand my issue. Perhaps because my English could be better...
So, what I meant exactly:
While filling the tax report there was a field to fill: "foreign income before moving to Canada". I put "0" there because I was certain that I don't have to report my income from before moving to CA. Now I'm worried that maybe I should have put my income there because I was working in my country before I came here. However, I paid all of the taxes there.
Summing up, I'm worrying that it may be a penalty that I put 0 in that field. I hope you understand what I mean. My language isn't perfect yet.

 

[paras1991]

You have to disclose your income before coming to Canada. Convert the amount in Canadian dollars and send the amount info to CRA. This is required to calculate your GST /HST benefit.

 

[PSth]

Hi !!! I have a same problem as yours. What did you do?? Your suggestions would be highly appreciable. Thank you.

 

[paras1991]

You have to disclose your income before coming to Canada. Convert the amount in Canadian dollars and send the amount info to CRA. This is required to calculate your GST /HST benefit.

 

[chasinglight]

I got this same email. How do i show this to them?

 

[Anuradh]

Hi...after reading all this I m also doubtful..We did a short landing in July '15 to take up our pr status..now we r finally shifting in Nov'16...so do we need to pay tax on income from jan to oct..We are already paying tax in india monthly

 

[paras1991]

From Jan to OCt, you were a non resident for tax purposes(considering you don't establish significant ties in Canada). Non residents are taxed only on Canadian source income...When you will here in Nov, you will become a resident for tax purpose because you will develop sufficient ties... On your 2016 tax return , you will be taxed only on income from Nov to Dec...howver you will still have to disclose your income while you were non resident on your tax return.

 

[chasinglight]

From Jan to OCt, you were a non resident for tax purposes(considering you don't establish significant ties in Canada). Non residents are taxed only on Canadian source income...When you will here in Nov, you will become a resident for tax purpose because you will develop sufficient ties... On your 2016 tax return , you will be taxed only on income from Nov to Dec...howver you will still have to disclose your income while you were non resident on your tax return.

How would we go around disclosing this?

 

[chasinglight]

bump. Still wondering about this

 

[COPRQuestion]

bump. Still wondering about this

I've been reading this forum and many said you will need to write it on your tax return, I spoke to a tax adviser and they told me I didn't need to write it down.

 

[Fairmont81]

Hi All,
Need some advise. We landed in Oct 16 for 3 weeks as initial landing and planned to move back to Qatar next week. The permanent move to Canada is planned by end of Dec 2017.

Question:

1. How are significant ties defined which make int'l income taxable?

2. Is opening a bank account eligible for CRA to say you had sufficent ties? or can i open one and transfer money from Qatar accounti into this Canadian account over the next 1 year to transfer appx 150K CAD funds?

3. How can I ensure I am not taxed on this money transfer without being resident in Canada. I am not even applying for health insurance yet.

4. Do I hve to fill any tax returns for 2016 and 2017?

5. So far, I only have SIN number as I was not sure whether driving license, insurance and bank account may mean significant ties to Canada making my int"l income taxable.

please note, So far Qatar is a tax free country. i.e. no tax on gross income.

appreictae quick reply.and advise.

best regards

3.

 

[COPRQuestion]

Hi All,
Need some advise. We landed in Oct 16 for 3 weeks as initial landing and planned to move back to Qatar next week. The permanent move to Canada is planned by end of Dec 2017.

Question:

1. How are significant ties defined which make int'l income taxable?

2. Is opening a bank account eligible for CRA to say you had sufficent ties? or can i open one and transfer money from Qatar accounti into this Canadian account over the next 1 year to transfer appx 150K CAD funds?

3. How can I ensure I am not taxed on this money transfer without being resident in Canada. I am not even applying for health insurance yet.

4. Do I hve to fill any tax returns for 2016 and 2017?

5. So far, I only have SIN number as I was not sure whether driving license, insurance and bank account may mean significant ties to Canada making my int"l income taxable.

please note, So far Qatar is a tax free country. i.e. no tax on gross income.

appreictae quick reply.and advise.

best regards

3.

Have a look at this on the CRA website

Step 1: Determine if you have residential ties with Canada
The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Significant residential ties to Canada include:

a home in Canada;
a spouse or common-law partner in Canada; and
dependants in Canada;
Secondary residential ties that may be relevant include:

personal property in Canada, such as a car or furniture;
social ties in Canada, such as memberships in Canadian recreational or religious organizations;
economic ties in Canada, such as Canadian bank accounts or credit cards;
a Canadian driver's licence;
a Canadian passport; and
health insurance with a Canadian province or territory.
To determine residence status, all of the relevant facts in each case must be considered, including residential ties with Canada and length of time, object, intent, and continuity with respect to stays in Canada and abroad.

The information above is general in nature. For more information on your residential ties, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.

the link is:

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

If in doubt ask a tax accountant.

My understanding is that just having a bank account won't count as being a resident for tax purposes as an interest earned in a bank account (and given interest rates are so low, it won't be a lot) is taxed at source

 

[jawad87]

I've been reading this forum and many said you will need to write it on your tax return, I spoke to a tax adviser and they told me I didn't need to write it down.

Hi, I'm having the same doubt. I moved to Canada in Apr 2016. I am not disclosing any income from Jan-Mar 16. Would this be ok? I was just wondering if they'll ask me to prove that I resigned from my job in Dec 15 etc.?