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Tax treatment of spouse who earned income abroad before moving to Canada

Matt173

Hero Member
Oct 13, 2019
279
108
Hello,

I wonder whether any of you was/is in a similar situation. I am about to file taxes for the year 2021.

In 2021, I was an international student who rented an apartment in Canada and studied full-time as graduate student. My wife still remained in our home country and only joined me in Canada in November 2021. She earned income in our home country until she quit her job to join me in November 2021. We do not have any other ties to Canada, no relatives, I did not purchase a home and my visa status temporary resident on a study permit.

My question is: Will any of the income my spouse earned in 2021 before she came to Canada be taxed in any way by CRA? My understanding is that she will not be taxed by CRA because she was not a resident of Canada for tax purposes during any time in 2021 when she earned income. When she joined me in Canada in November 2021 she quit her job beforehand and even then we did not have plans to stay in Canada permanently or to apply for permanent residence. According to everything I read so far our situation does not suggest that my spouse had any "significant ties" to Canada which CRA might use as argument to tax my wife's foreign income because at no time during her employment was she a resident of Canada. She did not enter Canada until November 2021 and therefore had no visa/residence permit before she entered Canada in November 2021.

But I want to make sure. I do not want CRA to come back to us and claim she owes Canadian taxes just because she had a spouse who lived/studied in Canada during the tax year 2021. According to multiple judicial decision in Canada it appears that a student spouse on a temporary visa does not constitute a "significant tie" for tax purposes hence she should not be taxed on her foreign income while she was not a Canadian resident.

Has someone gone through a similar situation and what was your experience when you filed taxes with CRA?

Thanks a lot!!!