income tax
- Thread starter olgagarza
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When asking questions about immigration and citizenship applications in Canada, it is really important to have looked at the application form and the instructions. Many questions are answered by just doing that. If you have not looked at IRCC's online information regarding applying for citizenship, you can start that here: https://www.canada.ca/en/immigration-refugees-citizenship/services/canadian-citizenship/become-canadian-citizen.html and follow links.
There is a citizenship forum here which is better for asking questions about qualifying for a grant of Canadian citizenship. See https://www.canadavisa.com/canada-immigration-discussion-board/forums/citizenship.12/
To qualify for a grant of Canadian citizenship, it is NOT necessarily required to file a Canadian tax return. HOWEVER, it is necessary to comply with tax filing obligations (as prescribed by CRA) for at least three of the five tax years prior to making an application for citizenship. This typically means the applicant needs to have filed at least some tax returns. But there are some exceptions.
Best approach is to file Canadian tax returns anyway. Will explain further below. In fact, I am posting a rather comprehensive post addressing the compliance with tax filing obligations requirement for citizenship.
If this is meant to say "Yes" in response to the question "Do i Have to file Taxes in order to obtain my Citizenship?" that response standing alone is NOT correct.
While in a practical sense it is probably true for the vast majority of PRs applying for citizenship, it is NOT true in a variety of situations.
That said, even for those PRs who may not need to file a tax return in order to meet the citizenship eligibility requirements, they would likely benefit from filing, and so much so that NOT filing could raise questions and thus may invite increased scrutiny, non-routine processing, and delays. Nonetheless, as long as they otherwise meet the eligibility requirements (presence, language, knowledge of Canada, no prohibitions, and so on), a PR who did not need to file a tax return should eventually be granted citizenship. Moreover, this will apply even for a PR who failed to file for two of the relevant five tax years even though they were obligated by CRA rules to file a return those two years (assuming they were not required to file a return the other three years, or filed a return if CRA rules required filing).
So, not quite a short but probably still not sufficient answer . . . to the question "does a PR who does not work need to file a Canadian tax return to qualify for citizenship?
Maybe, maybe not. It depends. Depends on additional factors in addition to just whether the PR was working or not. (Some people are required to file a return, by CRA rules, even if they had no employment income.)
It is possible that you might NOT need to have filed a tax return in Canada in order to qualify for and be granted citizenship. That is, it is possible to meet the requirements for citizenship, including the requirement to comply with tax filing obligations for at least three of the preceding five tax years, even if the applicant did not file any Canadian tax return.
But figuring out whether YOU in particular qualify for citizenship without ever filing a Canadian tax return is a more complicated question. Answering that question first demands figuring out, for each of the preceding five years, whether you were required to file a tax return. (That must be done anyway in order to complete the application, to fill in the information required in question 12 in the application form, and regardless how one answers question 12.)
Whether a PR must file a tax return for any particular tax year is not an immigration or citizenship question. It is a tax question, a question about CRA rules. While working in Canada, or working anywhere while a resident of Canada, will almost always mean a tax return needs to be filed, just the fact a PR did not work does NOT necessarily mean they were not obligated to file a return.
Will post further observations in another post about complying with tax filing obligations for at least three years, with examples.
Further Observations & Explanation:
As noted above, whether a PR is required to file a Canadian tax return for any particular tax year, and what kind of return in particular, is more complicated than just whether the PR "works" or not. Generally (almost always) anyone who works in Canada is required to file a return. But not working does not mean no return is required if there are other factors or circumstances requiring a return under CRA rules. As I said, this is a tax question, not a citizenship or immigration question. Most people can figure this out (and should have even apart from preparing to apply for citizenship) working through the information provided online by CRA, linked above. If you are still not sure regarding some years, it would be a good idea to consult with a tax professional.
The applicant needs to know whether or not they were required to file a tax return for each of the five tax years preceding the date the application is made. In question 12 in the application, in particular, the applicant must declare whether they were required to file a return for each of those five tax years, [yes] or [no] (and also declare if they filed a return for each of those five years, again [yes] or [no]). So the applicant must figure out and and truthfully declare whether they were required to file a return, and do this for each of the preceding five tax years. Again, this is a tax question, not an immigration or citizenship question. If not sure, see the CRA website or consult with a tax professional.
Tax Filing Compliance Required to Qualify for Citizenship:
This is specifically about answering question 12 in CIT 0002 (grant citizenship application form), in which the applicant must declare whether they were required to file a return for each of the preceding five tax years, [yes] or [no], and also declare if they filed a return for each of those five years, again [yes] or [no].
There is no specific requirement to file a tax return in order to be eligible for citizenship, but as noted above, one of the requirements is compliance with Canada's tax filing laws for at least three of the previous five tax years.
Any tax year during which the applicant was not required to file a tax return, under CRA rules, will count as one of the years of compliance. It will count whether the applicant filed a tax return or did not file. That is, in addition to counting any year in which a tax return was filed (indicated by checking [yes] in the column for "Taxes filed" for the corresponding tax year), counting that year as one of the years in compliance, any year in which the applicant checked [no] in the "Required to file" column will also count (whether [yes] or [no] is checked in the "Taxes filed" column).
So, technically a PR could qualify and be granted citizenship without ever having filed a tax return, if for at least three of the preceding five tax years they were not required (under CRA rules) to file a tax return. (Again, there are factors other than just whether the PR was working involved.) Thus, technically a PR could qualify and be granted citizenship without ever having filed a tax return even if during two of the previous five tax years they should have filed a return and did not.
For an application made now or anytime up to December 31 this year, the preceding five tax years are 2019, 2020, 2021, 2022, 2023
Example 1: (showing applicant meets requirement to have complied with tax filing obligation by having met filing obligation for five of five years):
Example 2: (showing applicant meets requirement to have complied with tax filing obligation by having met filing obligation for three of five years, even though no returns were filed for two tax years in which they were obligated to file a return):
Example 3: (showing applicant meets requirement to have complied with tax filing obligation by having met filing obligation for three of five years, based on two years the PR was not required to file, one year filing a return, and not filing for two tax years in which they were obligated to file a return):
Note: This is actually a very easy to meet requirement. As examples 2 and 3 show, even those who fail to file a return for two years when they should have can still meet the requirement to comply with CRA tax filing obligations. For many new immigrants making a citizenship application this year it will be common they were not required to file a tax return for 2019 if they were not even living in Canada that year, and so that year counts as one of the three years in compliance. For some, especially those who meet the presence requirements and file late in this year, if they did not live in Canada in 2019 or 2020, there again that is two years they do not need to have filed a Canadian return and that's two years that count toward the necessary three years of compliance.
CAUTIONS:
None of the above is to in any way suggest someone NOT timely file a tax return for any year they have an obligation to file a return.
Best approach is to be sure to be in compliance for ALL FIVE YEARS, which means having filed a return for every year in which a return is required according to CRA rules. I cannot say for sure that not filing for a year the PR should have filed will raise questions or concerns, but no genius or expertise necessary to anticipate that's at least a significant possibility.
REMINDERS:
A PR might need to file a tax return, under CRA rules, even if they have no employment income. See CRA website to figure out if a tax return needs to be filed.
Additionally, many benefits in Canada require filing a tax return, so much so that not filing a return even when one is not required to file is also something that might trigger questions. Don't know for sure it will trigger questions, but it might.
Note Re Lengthy Unemployed Periods Generally:
For some people, a lengthy period of unemployment is not at all unusual. Full time students and some stay-at-home parents for example. No reason to worry this might cause concerns.
For others, lengthy periods of unemployment can invite questions, especially if there is no apparent means of support. Obviously this is something that will vary depending on individual circumstances.
One of the requirements for a grant of citizenship is compliance with Canada's tax filing laws for at least three of the previous five tax years (as of the date the application for citizenship is made). If you are already familiar with this, that probably means your question is really a tax question, that is whether a PR who does not work in Canada is required to file a tax return. If that is what your question is actually about, see the CRA website for information, starting here: https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/who-should-file-tax.html
As noted above, whether a PR is required to file a Canadian tax return for any particular tax year, and what kind of return in particular, is more complicated than just whether the PR "works" or not. Generally (almost always) anyone who works in Canada is required to file a return. But not working does not mean no return is required if there are other factors or circumstances requiring a return under CRA rules. As I said, this is a tax question, not a citizenship or immigration question. Most people can figure this out (and should have even apart from preparing to apply for citizenship) working through the information provided online by CRA, linked above. If you are still not sure regarding some years, it would be a good idea to consult with a tax professional.
The applicant needs to know whether or not they were required to file a tax return for each of the five tax years preceding the date the application is made. In question 12 in the application, in particular, the applicant must declare whether they were required to file a return for each of those five tax years, [yes] or [no] (and also declare if they filed a return for each of those five years, again [yes] or [no]). So the applicant must figure out and and truthfully declare whether they were required to file a return, and do this for each of the preceding five tax years. Again, this is a tax question, not an immigration or citizenship question. If not sure, see the CRA website or consult with a tax professional.
Tax Filing Compliance Required to Qualify for Citizenship:
This is specifically about answering question 12 in CIT 0002 (grant citizenship application form), in which the applicant must declare whether they were required to file a return for each of the preceding five tax years, [yes] or [no], and also declare if they filed a return for each of those five years, again [yes] or [no].
There is no specific requirement to file a tax return in order to be eligible for citizenship, but as noted above, one of the requirements is compliance with Canada's tax filing laws for at least three of the previous five tax years.
Any tax year during which the applicant was not required to file a tax return, under CRA rules, will count as one of the years of compliance. It will count whether the applicant filed a tax return or did not file. That is, in addition to counting any year in which a tax return was filed (indicated by checking [yes] in the column for "Taxes filed" for the corresponding tax year), counting that year as one of the years in compliance, any year in which the applicant checked [no] in the "Required to file" column will also count (whether [yes] or [no] is checked in the "Taxes filed" column).
So, technically a PR could qualify and be granted citizenship without ever having filed a tax return, if for at least three of the preceding five tax years they were not required (under CRA rules) to file a tax return. (Again, there are factors other than just whether the PR was working involved.) Thus, technically a PR could qualify and be granted citizenship without ever having filed a tax return even if during two of the previous five tax years they should have filed a return and did not.
For an application made now or anytime up to December 31 this year, the preceding five tax years are 2019, 2020, 2021, 2022, 2023
Example 1: (showing applicant meets requirement to have complied with tax filing obligation by having met filing obligation for five of five years):
| Tax Year | Required to file (yes or no checked) | Taxes filed (yes or no checked) |
| 2019 | [ No] | [ No] |
| 2020 | [ No] | [ No] |
| 2021 | [ No] | [ No] |
| 2022 | [ No] | [ No] |
| 2023 | [ No] | [ No] |
Example 2: (showing applicant meets requirement to have complied with tax filing obligation by having met filing obligation for three of five years, even though no returns were filed for two tax years in which they were obligated to file a return):
| Tax Year | Required to file (yes or no checked) | Taxes filed (yes or no checked) |
| 2019 | [ No] | [ No] |
| 2020 | [ No] | [ No] |
| 2021 | [ No] | [ No] |
| 2022 | [ Yes] | [ No] |
| 2023 | [ Yes] | [ No] |
Example 3: (showing applicant meets requirement to have complied with tax filing obligation by having met filing obligation for three of five years, based on two years the PR was not required to file, one year filing a return, and not filing for two tax years in which they were obligated to file a return):
| Tax Year | Required to file (yes or no checked) | Taxes filed (yes or no checked) |
| 2019 | [ No] | [ No] |
| 2020 | [ No] | [ No] |
| 2021 | [ Yes] | [ Yes] |
| 2022 | [ Yes] | [ No] |
| 2023 | [ Yes] | [ No] |
Note: This is actually a very easy to meet requirement. As examples 2 and 3 show, even those who fail to file a return for two years when they should have can still meet the requirement to comply with CRA tax filing obligations. For many new immigrants making a citizenship application this year it will be common they were not required to file a tax return for 2019 if they were not even living in Canada that year, and so that year counts as one of the three years in compliance. For some, especially those who meet the presence requirements and file late in this year, if they did not live in Canada in 2019 or 2020, there again that is two years they do not need to have filed a Canadian return and that's two years that count toward the necessary three years of compliance.
CAUTIONS:
None of the above is to in any way suggest someone NOT timely file a tax return for any year they have an obligation to file a return.
Best approach is to be sure to be in compliance for ALL FIVE YEARS, which means having filed a return for every year in which a return is required according to CRA rules. I cannot say for sure that not filing for a year the PR should have filed will raise questions or concerns, but no genius or expertise necessary to anticipate that's at least a significant possibility.
REMINDERS:
A PR might need to file a tax return, under CRA rules, even if they have no employment income. See CRA website to figure out if a tax return needs to be filed.
Additionally, many benefits in Canada require filing a tax return, so much so that not filing a return even when one is not required to file is also something that might trigger questions. Don't know for sure it will trigger questions, but it might.
Note Re Lengthy Unemployed Periods Generally:
For some people, a lengthy period of unemployment is not at all unusual. Full time students and some stay-at-home parents for example. No reason to worry this might cause concerns.
For others, lengthy periods of unemployment can invite questions, especially if there is no apparent means of support. Obviously this is something that will vary depending on individual circumstances.
I'm going to add a wee bit to boil things down, I think, from the responses above to make things easier:
-the test is not simply whether you 'worked.' The question is whether you are required to file taxes. See the CRA website for more detailed information.
-One simple aspect of whether you are required to file taxes is being resident in Canada and having income - including ALL worldwide income.
-If you're an adult and not clearly being supported entirely by spouse, they're going to wonder where your income is coming from, and if you dont' have any, why you're not filing taxes.
-Conclusion that they may possibly be led to draw - or at least consider - is that there's undeclared income or property and the person should be filing taxes.
The point being: as @dpenabill pointed out, there are those for whom the lack of income is fairly normal and their 'visible means of support' is clear: minors, university age students, partners taking care of children supported by spouse (although probably filing jointly anyway), some elderly and infirm. Side note: all or almost all of those SHOULD be filing taxes, except perhaps for minors, because they will (usually) get some benefit from filing taxes. (Carbon rebate, GST/HST rebates, child care beneft, other forms of government support, various benefits spouses filing jointly receive, etc. (I'd note a fairly high number of those who SHOULD be filing because it's in their monetary interest apparently don't - so it's not to say that it doesn't happen.)
So with some exceptions: if you're living here, have bank accounts (or not, really), but seem to be spending money and surviving (presumably rent/own a house), the question is probably going to come up - "where's it coming from?" If it's money coming from abroad that is income, you need to be filing taxes.
Now some might have a large pile of cash that they go down in the basement and get, and aren't receiving income, perhaps some are monks or whatever (although the tax filing form has a line for those having taken 'a vow of perpetual poverty' so they probably file too). But those cases are understood to be exceedingly rare.
Or the really boiled down answer to this is: if you're not working because you're living on income from abroad (or other undeclared income), you're at risk of having issues - both with the CRA and potentially the citizenship app.
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