tax as citizenship requirement

[sarahmd85]

Hello,
I have met all the citizenship requirement except the tax one, It says I need to file 3 year taxes, but I've only filled 2, as I was not considered a resident in the previous years hence, did not file them. How important is it to file 3 year taxes? the website says 3 year taxes, IF NEEDED.
Id appreciate your input

 

[canuck78]

Are you sure you can count the 1 year you were doing a residency in a Canada given that you were in the program the Saudi government pays Canada to their doctors? This is not a typical student or work situation. You didn’t apply for the permit you got it through the special training scheme that the Saudi government pays Canada to train their doctors. I am surprised you were not obligated to return to Saudi for a certain amount of time to work as a physician even if you were willing to pay back all the financial support you received to fo your residency in Canada. I would imagine that this is why you didn’t file taxes for that 3rd year.

 

[ITmanEU]

Came across this thread and I am also interested to know if you can apply for citizenship as PR after accumulating 3 years of stay in Canada (as very frequently interrupted physical presence yet summing up to 3 years in the last five years) even though you did not fill 3 year taxes?
I also would like to know if it matters that the tax return have been filled with certain amount income or no income at all (due to unemployment).
Thanks.

 

[canuck78]

Came across this thread and I am also interested to know if you can apply for citizenship as PR after accumulating 3 years of stay in Canada (as very frequently interrupted physical presence yet summing up to 3 years in the last five years) even though you did not fill 3 year taxes?
I also would like to know if it matters that the tax return have been filled with certain amount income or no income at all (due to unemployment).
Thanks.

You would certainly need to fill out at last 2 tax years to meet the residency requirements.

 

[masood8]

Hello,
I have met all the citizenship requirement except the tax one, It says I need to file 3 year taxes, but I've only filled 2, as I was not considered a resident in the previous years hence, did not file them. How important is it to file 3 year taxes? the website says 3 year taxes, IF NEEDED.
Id appreciate your input

For citizenship you have to fille atleast 3 years tax returns in prevoius 5 years, there is no exception here. So you have to wait until u file 3 tax returns.
If u send a application with a 2 years tax returns your application will considered incomplete and returned to you.

 

[ITmanEU]

Canuck78, thanks for your input. Much appreciated.
I read just above that it has to be 3 years of tax returns. Is it only applicable to OP situation.
So I can retain the 2 years as regards my specific case, is this correct?

 

[dpenabill]

Canuck78, thanks for your input. Much appreciated.
I read just above that it has to be 3 years of tax returns. Is it only applicable to OP situation.
So I can retain the 2 years as regards my specific case, is this correct?

The requirement is to COMPLY with CRA rules . . . to comply with tax filing obligations . . . for merely three of the five years years preceding the date of the application.

A year that the PR did not need to file a tax return, under CRA rules, counts as one of the three years toward meeting this requirement.

Some PRs may meet this requirement even if they have NEVER filed a tax return . . . so long as under CRA rules they were not obligated to file a return. (Note: this would be unusual, but very much possible.)

Thus, the following is simply wrong:

For citizenship you have to fille atleast 3 years tax returns in prevoius 5 years, there is no exception here. So you have to wait until u file 3 tax returns.
If u send a application with a 2 years tax returns your application will considered incomplete and returned to you.

That is not correct. Again, the requirement for grant citizenship is that the applicant must have met tax filing obligations for three of the preceding five tax years.

If the applicant can truthfully check "no," not required to file for a particular tax year, that will count toward one of the three even though the applicant checks "no" did not file a return for that year.

A person applying today, for example, can check "no" not required to file for 2019 because there is, so far, no obligation to file a 2019 tax return (no obligation to do so until after April 29). And this will count as one of those three tax years in which the applicant needs to have complied with the CRA tax filing rules.

Note, for example, some assert that being a resident of Canada means the person is obligated to file a tax return. NOT necessarily true. See the CRA website for specific criteria regarding who must file a tax return.

That said, MOST people who are a resident of Canada will benefit from filing a tax return even if technically they are not obligated to file a return. And there are a number of benefits, including benefits to family members, which will trigger the obligation to file.

So it is rather unusual for a person who is resident in Canada to check "no" and "no" . . . not required to file and did not file. Leading to a CAUTION . . . .


CAUTION:

Meeting the tax filing obligations for grant citizenship is one of the easiest to meet eligibility requirements. As noted, if the applicant can honestly say that he or she was not required to file a tax return for this or that year, that will count as one of the three years. Anyone applying for citizenship in the first quarter of the new year automatically gets a pass for the previous tax year (applications made in the first quarter of 2020, again, can check "no" and "no" for 2019 and count 2019 as one of the three years they have complied with filing obligations, even though they will be obligated to file a return for 2019 by April 30, 2020).

BUT not filing a tax return for a year an individual was resident in Canada is UNUSUAL enough to invite if not outright raise questions. It could be a factor triggering RQ-related non-routine processing.

And, frankly, this could be a consideration for all the tax years . . . say you have already filed for 2019, and you filed for 2018 and 2017, that totally meets the requirement to have complied with tax filing obligations for three of the preceding five years. BUT if your presence calculation and address information in the application also indicates you were a resident in Canada for much of 2016, but did not file a return that year, no stretch of imagination necessary to suggest this could trigger questions.

The prudent applicant will have filed a tax return for ALL tax years in which there was an obligation to file a return, and this will ordinarily include filing a tax return for ALL tax years the PR was residing in Canada during the five year eligibility period. This is not necessary to meet the requirements. But just like having a decent margin of presence over the minimum, it can make the difference between a positive impression or inviting questions if not suspicions.

 

[ITmanEU]

dpenabill,
I am ignorant on these matters likewise seeking for orientations here.
But quite frankly what you write makes sense to me.

May I PM you for one or two questions, please?
Thanks

 

[masood8]

The requirement is to COMPLY with CRA rules . . . to comply with tax filing obligations . . . for merely three of the five years years preceding the date of the application.

A year that the PR did not need to file a tax return, under CRA rules, counts as one of the three years toward meeting this requirement.

Some PRs may meet this requirement even if they have NEVER filed a tax return . . . so long as under CRA rules they were not obligated to file a return. (Note: this would be unusual, but very much possible.)

Thus, the following is simply wrong:



That is not correct. Again, the requirement for grant citizenship is that the applicant must have met tax filing obligations for three of the preceding five tax years.

If the applicant can truthfully check "no," not required to file for a particular tax year, that will count toward one of the three even though the applicant checks "no" did not file a return for that year.

A person applying today, for example, can check "no" not required to file for 2019 because there is, so far, no obligation to file a 2019 tax return (no obligation to do so until after April 29). And this will count as one of those three tax years in which the applicant needs to have complied with the CRA tax filing rules.

Note, for example, some assert that being a resident of Canada means the person is obligated to file a tax return. NOT necessarily true. See the CRA website for specific criteria regarding who must file a tax return.

That said, MOST people who are a resident of Canada will benefit from filing a tax return even if technically they are not obligated to file a return. And there are a number of benefits, including benefits to family members, which will trigger the obligation to file.

So it is rather unusual for a person who is resident in Canada to check "no" and "no" . . . not required to file and did not file. Leading to a CAUTION . . . .


CAUTION:

Meeting the tax filing obligations for grant citizenship is one of the easiest to meet eligibility requirements. As noted, if the applicant can honestly say that he or she was not required to file a tax return for this or that year, that will count as one of the three years. Anyone applying for citizenship in the first quarter of the new year automatically gets a pass for the previous tax year (applications made in the first quarter of 2020, again, can check "no" and "no" for 2019 and count 2019 as one of the three years they have complied with filing obligations, even though they will be obligated to file a return for 2019 by April 30, 2020).

BUT not filing a tax return for a year an individual was resident in Canada is UNUSUAL enough to invite if not outright raise questions. It could be a factor triggering RQ-related non-routine processing.

And, frankly, this could be a consideration for all the tax years . . . say you have already filed for 2019, and you filed for 2018 and 2017, that totally meets the requirement to have complied with tax filing obligations for three of the preceding five years. BUT if your presence calculation and address information in the application also indicates you were a resident in Canada for much of 2016, but did not file a return that year, no stretch of imagination necessary to suggest this could trigger questions.

The prudent applicant will have filed a tax return for ALL tax years in which there was an obligation to file a return, and this will ordinarily include filing a tax return for ALL tax years the PR was residing in Canada during the five year eligibility period. This is not necessary to meet the requirements. But just like having a decent margin of presence over the minimum, it can make the difference between a positive impression or inviting questions if not suspicions.

As per my understanding CRA and CIC are 2 different departments but CIC could pull CRA info if the applicant given a consent, every thing you mentioned is likely to be true but upon application submission the applicant need to provide 3 year tax return esle the application will be returened and he/she have to provide a clarification/reasoning,
CIC wont just assume the same scenario as you motioning .
So my understanding is that in these cases the applicant must consult a immigration lawyer who could help the apllicant before subbmition to avoid any delays in possess.

 

[PMM]

Hi

As per my understanding CRA and CIC are 2 different departments but CIC could pull CRA info if the applicant given a consent, every thing you mentioned is likely to be true but upon application submission the applicant need to provide 3 year tax return esle the application will be returened and he/she have to provide a clarification/reasoning,
CIC wont just assume the same scenario as you motioning .
So my understanding is that in these cases the applicant must consult a immigration lawyer who could help the apllicant before subbmition to avoid any delays in possess.

1. No, you application will not be returned if you haven't submitted 3 years worth of tax returns. Some people in Canada aren't required to submit tax returns, no income, or tax free income.

 

[ITmanEU]

Its probably a different question, but if you are not deemed resident for tax purposes and still fill in your tax returns. Would this be technically wrong? I know that there is way to ask CRA to confirm your status with regard to tax filling. Yet, if you just go ahead and send the tax return, is there any problem with that?
Actually because I do not have any income, it basically boils down to me sending the forms to CRA with zero income, so it's not a big administrative burden.

 

[dpenabill]

As per my understanding CRA and CIC are 2 different departments but CIC could pull CRA info if the applicant given a consent, every thing you mentioned is likely to be true but upon application submission the applicant need to provide 3 year tax return esle the application will be returened and he/she have to provide a clarification/reasoning,
CIC wont just assume the same scenario as you motioning .
So my understanding is that in these cases the applicant must consult a immigration lawyer who could help the apllicant before subbmition to avoid any delays in possess.

Agree with PMM.

The requirement is to comply with CRA rules. In item 12.b) in the application (CIT 0002 (06-2019) E version) the applicant self-reports compliance with the CRA rules.

Years that count toward meeting the citizenship requirement include any year the applicant checks "yes" and "yes" (required to file and did file) AND any year in which the applicant checks "no" not required whether or not the applicant checks "yes" or "no" in the taxes filed column.

The only years which will not count as years in compliance are years the applicant checks "yes" required to file but checks "no" did not file. That would be a year in which the applicant did not meet the CRA obligation to file a return.

WHETHER or NOT the APPLICANT has TRUTHFULLY REPORTED this information is a separate issue. Applications are returned for incompleteness. Verification of truthfulness is NOT part of the completeness screening. Such verification can be a part of processing the application by the local office, and of course any misrepresentation in this regard is potentially serious . . . and even though information sharing between CRA and IRCC (has not been CIC since 2015) is not nearly so open as some apprehend, there is enough potential sharing that it would be utterly stupid to make any misrepresentations of this sort.

Its probably a different question, but if you are not deemed resident for tax purposes and still fill in your tax returns. Would this be technically wrong? I know that there is way to ask CRA to confirm your status with regard to tax filling. Yet, if you just go ahead and send the tax return, is there any problem with that?
Actually because I do not have any income, it basically boils down to me sending the forms to CRA with zero income, so it's not a big administrative burden.

I am NOT an expert in citizenship matters . . . AND I am especially not a good source for questions about the CRA rules.

BUT the basics are relatively straight-forward. MOST people living in Canada will benefit from filing a tax return even if they are not required to file a return. Whether they should file a resident tax return or a non-resident tax return depends on their particular circumstances. CRA enforces tax laws. Canadians (whether a citizen or PR) are obligated to comply with Canadian tax laws. Including tax return filing requirements. For detailed questions about filing requirements, including what type of return to file, what to report in the tax return, what taxes to pay, what benefits are affected, and so on, see the information provided by CRA or consult with a TAX PROFESSIONAL.

For citizenship applicants, IRCC does not distinguish what type of return was filed. IRCC simply asks whether the applicant was required to file a return for each of the preceding five tax years, yes or no, and in the other column IRCC asks whether the applicant did file a return for each of those years.

My view is that it is best to file a return. And if a return is filed that will most likely have an impact on some benefits, in some way, which to my view then means the individual was required to file a return, practically speaking. That is, even if the individual was not required to file a return (such as someone with zero income), by filing a return that (in a practical sense) results in being obligated to file a return. To my view, if the applicant can truthfully check "yes" did file for a given tax year, it is OK to also check "yes" required to file whether or not technically the individual might not have been required to file.

BUT for the citizenship application, if the applicant checks "no" not required to file, and "yes" did file, that is a year that counts toward the minimum three years of meeting tax filing obligations. That is, for a given tax year checking "no" not required to file and "yes" did file is OK.

(Regarding PM: I generally do respond to PMs. I prefer responding in the forum. Particularly since I am NO expert and I make mistakes, and when I make a mistake hopefully someone else in the forum will correct what I said . . . and as to some matters, there are differing views. The fact I am NOT an expert and that I am NOT qualified to offer personal advice demands much emphasis. Thus, generally, I will have little or nothing more to offer in PM than I do in the forum.)

 

[PMM]

Hi

Agree with PMM.

The requirement is to comply with CRA rules. In item 12.b) in the application (CIT 0002 (06-2019) E version) the applicant self-reports compliance with the CRA rules.

Years that count toward meeting the citizenship requirement include any year the applicant checks "yes" and "yes" (required to file and did file) AND any year in which the applicant checks "no" not required whether or not the applicant checks "yes" or "no" in the taxes filed column.

The only years which will not count as years in compliance are years the applicant checks "yes" required to file but checks "no" did not file. That would be a year in which the applicant did not meet the CRA obligation to file a return.

WHETHER or NOT the APPLICANT has TRUTHFULLY REPORTED this information is a separate issue. Applications are returned for incompleteness. Verification of truthfulness is NOT part of the completeness screening. Such verification can be a part of processing the application by the local office, and of course any misrepresentation in this regard is potentially serious . . . and even though information sharing between CRA and IRCC (has not been CIC since 2015) is not nearly so open as some apprehend, there is enough potential sharing that it would be utterly stupid to make any misrepresentations of this sort.

1. Legally the name of the department is appears to still Citizenship and Immigration Canada. Note that Federal Court appeals, where the appeal is filed against IRCC, the judges change the respondent to CIC.

 

[canuck78]

Canuck78, thanks for your input. Much appreciated.
I read just above that it has to be 3 years of tax returns. Is it only applicable to OP situation.
So I can retain the 2 years as regards my specific case, is this correct?

OP is in a very rare situation. Canada used to (the deal maybe back on) has a deal with the KSA to train their physicians. They pay the provinces/hospitals to train theirdoctors plus pay the salaries and living expenses of the residents and fellows. Canada benefits from having extra residents and fellows working in the health system. They are supposed to return to KSA at the end of the training. This is a very specific circumstance and I am not sure if OP will be able to use the time during that program as credit like other students/workers before PR. I am also not sure what kind of tax arrangement is set for doctors participating in the KSA training program since they are solely being supported by the KSA.

 

[navid2014]

@dpenabill & All,

For Homemakers what should be the answer with zero income and the only income is a Canada Child Benefits.

Whether it should by checking "no" to required to file and "yes" did file for tax year (2015,2016,2017,2018 & 2019)?

Thanks.