Should i have filled tax before i left canada?

[Chevy23]

Hi,

I lived in Canada for two years on a work permit and filled tax, I had to leave Canada in October 2013 to wait for my PR paperwork

My wife filled her tax for the 2013 year but said they want to know my world income and temp SIN number.. I gave them my temp SIN number

I will be returning to Canada soon and will file tax for the 2014 year, but do I need to file for the previous year as well?
Should I have done that before I left?

Or do I just start filling tax again when I return - I will be landing as a PR but wasn't a permanent resident before

Thanks

 

[Amadan123]

Hello Chevy23,

You have to file tax returns in Canada if you were a resident of Canada for tax purposes and/or if you have taxes to pay (because you earned income in the year). Being a resident of Canada for tax purposes is not the same as legal residency via PR cards, citizenship, etc. It depends on whether or not you have substantial residency ties in Canada such as primary ties (home, spouse, and/or dependents) and secondary ties (social, economic, religious ties, etc.). Please read the link for more information (http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html)

Based on the information provided, it would be a good idea to file tax returns in Canada for the period you were here as soon as possible. Filing tax returns could entitle you to receiving benefits such as the GST/HST credit, ONBEN, WITB and more.

Is your wife a resident of Canada for tax purposes? If so, then you will be a deemed resident as well and may have Canadian tax reporting/payment obligations (because your wife is a primary tie).

I apologize if the above is confusing or too much to take in, but that's just the nature of the beast that is income taxation.

Madan Chartered Accountant
www.madanca.com

 

[Chevy23]

Hello Chevy23,

You have to file tax returns in Canada if you were a resident of Canada for tax purposes and/or if you have taxes to pay (because you earned income in the year). Being a resident of Canada for tax purposes is not the same as legal residency via PR cards, citizenship, etc. It depends on whether or not you have substantial residency ties in Canada such as primary ties (home, spouse, and/or dependents) and secondary ties (social, economic, religious ties, etc.). Please read the link for more information (http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html)

Based on the information provided, it would be a good idea to file tax returns in Canada for the period you were here as soon as possible. Filing tax returns could entitle you to receiving benefits such as the GST/HST credit, ONBEN, WITB and more.

Is your wife a resident of Canada for tax purposes? If so, then you will be a deemed resident as well and may have Canadian tax reporting/payment obligations (because your wife is a primary tie).

I apologize if the above is confusing or too much to take in, but that's just the nature of the beast that is income taxation.

Madan Chartered Accountant
www.madanca.com

Thanks for your reply!

I had a read if that link and I am confused by one paragraph:

If you established ties in a country that Canada has a tax treaty with and you are considered a resident of that country, but you are otherwise a factual resident of Canada, meaning you maintain significant residential ties with Canada, you may be considered a deemed non-resident of Canada. The same rules apply to deemed non-residents as non-residents of Canada.

I am from the UK if that helps, I am still unsure of what my status would have been for last year as to wether I would be a deemed resident or a deemed non-resident

If I do need to file for the previous year can I file both last years and this years tax return together?
Or do I need to do it separately? I assume there will be penalties for filing a late return so does it matter if I wait until say January before I file so I can just do both years together

Thanks for your help

 

[Amadan123]

Hello,

I'll try to address each of your points.

1) "If you established ties in a country that Canada has a tax treaty...." means that
a) if you are a resident for tax purposes of a country with whom Canada has a tax treaty (Great Britain is an example), and at the same time, you are a resident of Canada for tax purposes too,
b) you could be deemed a non-resident of Canada for tax purposes by virtue of you being a resident of the other country already (Great Britain, for example).

You should speak to the senior reps at the CRA at 1-800-959-8281 to obtain more information as it relates to your situation.

2) To obtain an understanding from the CRA about your residency status for tax purposes, you could consider completing the form NR73, which is a determination of one's residency. See a copy of this form here:

http://www.cra-arc.gc.ca/E/pbg/tf/nr73/README.html

3) One must complete each year's income tax return on a prescribed return package for the year that pertains to the reporting period (i.e. 2012, 2013, etc.); you can submit them together in the same envelope though. See the income tax packages here:

http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html

4) The CRA calculates its penalties and interest on a daily compounded rate, so the sooner you can pay your tax liabilities the better.

The above are simply general guidelines. Speak with the CRA for more detailed information.

Madan Chartered Accountant
www.madanca.com