Non-Resident Spouse - INFORM CRA OF YOUR CHANGE IN STATUS TO MARRIED/CL

[jomz]

For information purposes only. I am in the process of researching this matter. But from what I can see, to all Canadian PRs and Canadian Citizens, although your spouse is not yet in Canada or is in Canada waiting for their PR application to be processed you have to inform CRA (Canada Revenue Agency) of your change of status to married or common-law. CRA website states this has to be done within 30 days of change in status. I have not done so yet as I was not aware that it had to be done right away. Incorrectly I was under the impression that I can just declare at time I will file my 2013 taxes. oops ;D

http://www.howlandtax.com/articles/nonresident-spouse.htm

 

[Ponga]

Thanks for posting this information. Please tell me that this is only a requirement of CRA and not CIC for a spousal sponsorship application.
My sponsor recently changed her status with CRA, as was advised by several immigration experts to help prove our genuine relationship, but
it was well beyond the 30 days when our CL became `official'.

 

[CharlieD10]

It's a requirement of CRA. It's a good idea to update your status with CRA as soon as feasible. In our case, we got married in June, but it wasn't until my husband returned to Canada in October that he updated his status with CRA, which CRA had no issues with. So, they are not expecting you to put yourself out to do it, but at the same time they don't expect you to delay once you can conveniently do so.

 

[jomz]

This is only for CRA purposes.


CIC will find out your status as your application will have supporting documents.

 

[Ponga]

Hmmm...as if I didn't have enough `uh oh, what about this' questions already.

My spousal partner has changed her marital status with CRA, primarily to add another form of evidence to our application, but the date
of change, and our official date when we entered into our CL relationship `officially by the calendar' are NOT the same dates...not even close.

If this really is only an issue with CRA, no big deal as I am not eligible to work or pay taxes in Canada yet anyway, so it likely wouldn't be a change in her tax liability.
However if it is, regarding our application with CIC...then it is yet another `wrench in the proverbial wheel', which IS a big deal.

 

[jomz]

Hmmm...as if I didn't have enough `uh oh, what about this' questions already.

My spousal partner has changed her marital status with CRA, primarily to add another form of evidence to our application, but the date
of change, and our official date when we entered into our CL relationship `officially by the calendar' are NOT the same dates...not even close.

If this really is only an issue with CRA, no big deal as I am not eligible to work or pay taxes in Canada yet anyway, so it likely wouldn't be a change in her tax liability.
However if it is, regarding our application with CIC...then it is yet another `wrench in the proverbial wheel', which IS a big deal.

I understand what you mean, so when she called CRA they asked her for the date her status changed. As far as I know CRA and CIC do not exchange information. The only thing CIC will see is an Option C from your spouse on which it will state her marital status (no date).


My Option C showed SINGLE because I applied for it before I was legally married. It won't make a difference to CIC as my Option C is dated in July, 2013 and I was married in August, 2013. But if you apply for Option C after the date you stated as start of your common law than your Option C should show the marital status as COMMON LAW.

 

[CharlieD10]

Hmmm...as if I didn't have enough `uh oh, what about this' questions already.

My spousal partner has changed her marital status with CRA, primarily to add another form of evidence to our application, but the date
of change, and our official date when we entered into our CL relationship `officially by the calendar' are NOT the same dates...not even close.

If this really is only an issue with CRA, no big deal as I am not eligible to work or pay taxes in Canada yet anyway, so it likely wouldn't be a change in her tax liability.
However if it is, regarding our application with CIC...then it is yet another `wrench in the proverbial wheel', which IS a big deal.

They don't have to be the same date, as the agencies maintain separate criteria for things such as common-law relationships. If you are spouses, the date of change is the date of your marriage as per your marriage certificate, no matter when you advise CRA. The point is, you don't want to delay advising CRA any longer than reasonable, especially if your spouse receives income-linked payments such as Universal Child Care Benefit and Child Tax Benefit.

 

[jomz]

They don't have to be the same date, as the agencies maintain separate criteria for things such as common-law relationships. If you are spouses, the date of change is the date of your marriage as per your marriage certificate, no matter when you advise CRA. The point is, you don't want to delay advising CRA any longer than reasonable, especially if your spouse receives income-linked payments such as Universal Child Care Benefit and Child Tax Benefit.

Ponga is common-law. So no actual marriage certificate, just proof.

 

[Ponga]

A slap on the wrist from CRA, for not changing her filing status sooner, is a pill that would be easy to swallow, especially as I mentioned that we don't belive it would have increased her tax liability at all. The CIC meat grinder would be another story.

 

[Rob_TO]

A slap on the wrist from CRA, for not changing her filing status sooner, is a pill that would be easy to swallow, especially as I mentioned that we don't belive it would have increased her tax liability at all.

The main reason the CRA wants the update to common-law or married done as soon as possible, is because many times people qualify for certain income tax credits/benefits as a single person, but are no longer eligible for these credits when they add their new spouse's Canadian or world income by filing joint taxes. So if someone waits a long time to change their status and continues getting benefits, then CRA will go back to the effective date of the marriage/common-law, and you'll have to pay everything back if you weren't qualified for it at the time.

 

[jomz]

In addition.

Income Tax Act
The Income Tax Act considers you common law if you have lived together for one year or more in a conjugal relationship or a shorter period of time while raising a child together. If you are common law, you must (it is not optional) file as common law and can claim the same tax credits as if you were married.

 

[jomz]

Rob, please correct me if I'm wrong, but I think that an issue may arise with CIC if:

sponsor and applicant became common law in tax year 2012
sponsor filed 2012 taxes in 2013 and stated "single" as marital status in the year 2012
sponsor called CRA in 2013 and stated marital status changed in 2013

I have seen CIC ask for prior years tax assessments from the sponsors. There was one case on appeal which appeal was dismissed due misrepresentation. (Story was: lady married someone abroad, sponsored him to canada, was denied based on relationship not genuine. In the appeal notes it states that CIC obtained CRA assessments which showed the sponsor as being in a common law relationship on her taxes during time she was married, and ruled misrepresentation and further sustained that the marriage she entered into was a marriage of convenience.

 

[CheshireCats]

My husband and I went through this and it's a nightmare!
We got married late 2010 and my tax preparer failed to mention it, I didn't even notice until the next year when I filed 2011 taxes and all my credits, including child tax stopped.
Took 5 months to get everything sorted out.
CRA wanted tax returns for my hubby all the way back to 2009. Even though they were NIL..he had to get an international tax number and last years filed taxes from Australia.

 

[jomz]

Well I'm glad than I started this thread and hope it will save others from possible nightmares with CRA!


To be honest I think CRA is a much scarier beast than CIC! LOL

 

[SenoritaBella]

If you were not married or common-law by December 31st, 2012, your status on the most recent Option C will still show "single". But you should update your status with CRA so that your 2013 tax return will reflect same.

This is a good document to include with your sponsorship application to help proof your relationship. It will show that you are taking steps to merge your finances. Also, if you are both contributing to RRSP as a couple or have added your spouse as a beneficiary, include this evidence with your sponsorship application.