Taxation for Express Entry PR Holders

[roger01]

Good day, Members!

I have a question, and maybe some of you have faced it already and could advice what shall I do.

I am from Germany, came to Canada in June 2017 on a work permit but did not work in Canada because had an online job from back home meanwhile preparing for Express Entry application.

On November 2017 I became a permanent resident and received a new updated SIN.

Right now is the taxation season and three accountants I have consulted with are telling me that I should not declare a foreign income. They are saying that I was getting only 9000 Euros for 2017 on my online job up and that all taxes for this income are already paid by my ex.employer and are not needed in Canada.

I just do not want to make any mistakes and would appreciate if you can provide me with your experiences with this matter.

Have a good day!

 

[karthik506]

You should declare your foreign income during the taxation if you want to receive benefits like child care, gst and OTB..

 

[roger01]

You should declare your foreign income during the taxation if you want to receive benefits like child care, gst and OTB..

Thank you, but if I do not want to receive any benefits? Income of 9000 Euros after tax ( I paid them back home) is not substantial in my opinion, will it be a problem if I do not declare it for CRA?

 

[karthik506]

CRA won't tax you for low foreign income . However, you can not say, I don't want any benefit.. CRA will ask you anyway if you don't declare .

 

[roger01]

CRA won't tax you for low foreign income . However, you can not say, I don't want any benefit.. CRA will ask you anyway if you don't declare .

Got you, thanks. I mean I can declare and ask for benefits, I just do not want any problems in the future. For example, if CRA wants to double check my income in Germany, they would call Germany, request papers, it will take ages and meanwhile I will be under stress. It is my point. I can ask for benefits for sure. So technically, I can not declare foreign income (small) and just ask for benefits in Canada and I am going to be fine, right?

 

[lampbreaker]

Generally, there is no double taxation. So when you report foreign income, you also report the taxes paid to the foreign country and your local tax liability is reduced by that much. Most countries have treaties to avoid double taxation, but I don't know about Germany and Canada.

 

[roger01]

Generally, there is no double taxation. So when you report foreign income, you also report the taxes paid to the foreign country and your local tax liability is reduced by that much. Most countries have treaties to avoid double taxation, but I don't know about Germany and Canada.

Thank you. Yes, Germany and Canada have it too. Accountants in Toronto informed because I did not have any income in Canada for 2017 since I entered I should not declare foreign income. I just do not want to face any problems with CRA in the future and got confused by their suggestions.

 

[OdinNguyen]

Good day, Members!

I have a question, and maybe some of you have faced it already and could advice what shall I do.

I am from Germany, came to Canada in June 2017 on a work permit but did not work in Canada because had an online job from back home meanwhile preparing for Express Entry application.

On November 2017 I became a permanent resident and received a new updated SIN.

Right now is the taxation season and three accountants I have consulted with are telling me that I should not declare a foreign income. They are saying that I was getting only 9000 Euros for 2017 on my online job up and that all taxes for this income are already paid by my ex.employer and are not needed in Canada.

I just do not want to make any mistakes and would appreciate if you can provide me with your experiences with this matter.

Have a good day!

I don't see the point. If your accountant said that your income will not be tax again, what is the different between declaring it or not?

 

[karthik506]

Got you, thanks. I mean I can declare and ask for benefits, I just do not want any problems in the future. For example, if CRA wants to double check my income in Germany, they would call Germany, request papers, it will take ages and meanwhile I will be under stress. It is my point. I can ask for benefits for sure. So technically, I can not declare foreign income (small) and just ask for benefits in Canada and I am going to be fine, right?

No... You should declare your foreign income even it is none. CRA will contact you to send your income details if you would not declare during the taxation. Don't worry CRA won't contact your employer in Germany...