Posted on: 14-04-07 08:15:53
Dear Friends,
please advice, I am not sure how to proceed.
First entry in Jan 2005( self, wife and two sons aged 18 and 11). stayed for three weeks.
second entry during May2005.(all except self)
I entered Canada for a brief period of 40 days during august/sep2005.
Family satyed in canada from May 2005 to June 2006.
The plan was self to join them during June 2006.
I had a setback in my health in May 2005. My wife and younger son joined me in India and they are still with me. Elder son is staying in canada and studying.
We all are planning to go to canada in July 2007 for good.
I filed a tax return for 2005 as resident of canada. I want o file a tax return for 2006 also. Eventhough I did not spend any time in canada in 2006, I have established links like Driving Licence, Bank account, maintaining a rental apartment where my son is staying now etc.
I was told that I can file tax return as non resident. If I am not expecting any returns then it can be filed even after april 30th deadline.Is it true?
I would prefer to file the return as a resident of Canada, as I have establlished links as statated above.
Can some one guide me Please?
Quote:
Originally posted by indian59
Dear Friends,
please advice, I am not sure how to proceed.
First entry in Jan 2005( self, wife and two sons aged 18 and 11). stayed for three weeks.
second entry during May2005.(all except self)
I entered Canada for a brief period of 40 days during august/sep2005.
Family stayed in Canada from May 2005 to June 2006.
The plan was self to join them during June 2006.
I had a setback in my health in May 2005. My wife and younger son joined me in India and they are still with me. Elder son is staying in Canada and studying.
We all are planning to go to Canada in July 2007 for good.
I filed a tax return for 2005 as resident of Canada. I want o file a tax return for 2006 also. Even though I did not spend any time in Canada in 2006, I have established links like Driving Licence, Bank account, maintaining a rental apartment where my son is staying now etc.
I was told that I can file tax return as non resident. If I am not expecting any returns then it can be filed even after April 30th deadline. Is it true?
I would prefer to file the return as a resident of Canada, as I have established links as stated above.
Can some one guide me Please?
You can and should file Canadian Tax Return as Resident as you have residential ties here. However, make sure to report your worldwide income in your return, if you have any. And yes, you can file even after the April 30th deadline but you would have to pay penalties and interest if you have taxes owing to the Government. If you feel that you would have taxes owing, then try to deposit the probable tax amount before 30th April, 2006 and file the tax return later and this way you would avoid paying penalties and interests, if any.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Hello,
I came to Canada in Nov. 2006. Please let me know if I need to show my air fare and stuff as moving expenses in my returns. Also is there something which we usualy miss during our first returns please post.
Thanks
Zubs
Dear Pramod ji,
thank you verymuch for the information. I will file the return as a resident showing my worldwide income.
thank you once again.
Quote:
Originally posted by zubs
Hello,
I came to Canada in Nov. 2006. Please let me know if I need to show my air fare and stuff as moving expenses in my returns. Also is there something which we usualy miss during our first returns please post.
Thanks
Zubs
As per CRA's Guide T4055 - Newcomers to Canada you can not claim moving expenses for your move to Canada. Here is a little cut and paste from that guide.
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Moving expenses
Generally, you cannot deduct moving expenses incurred to move to Canada.
However, if you entered Canada to attend courses as a full-time student at a college, university, or other institution offering post-secondary education and you received a taxable scholarship, bursary, fellowship, or research grant to attend that educational institution, you may be eligible to deduct your moving expenses.
You cannot deduct moving expenses if your only income at the new location is scholarship, fellowship, or bursary income that is entirely exempt from tax under the proposed legislation.
For more details, get Form T1-M, Moving Expenses Deduction.
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For more details on your situation you can follow this http://www.cra-arc.gc.ca/E/pub/tg/t4055/t4055-e.html
Regarding your other points, make sure to report all;
1. Your income after coming to Canada on your T1 General
2. Claim all your deductions such as spousal deductions, tax credits for your kids, spouse and self
3. Your Rental expenses after your landing (make sure to have receipts)
4. Any donations you made here
5. If Self Employed, then you can claim certain deductions
And for all this please visit a Tax Professional for your first ever return if you feel there are any special situations for you.
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Dear Pramod,
Though I filled up the forms, I was hesistant to send the return as one of my cus said we need to show the moving expense though he was'nt quite sure. Even the accountant who done my return was also not sure about this. Any way thanks a lot for the information provided and its much valuable for me and hope its same for fellow new comers
Quote:
Originally posted by zubs
Dear Pramod,
Though I filled up the forms, I was hesistant to send the return as one of my cus said we need to show the moving expense though he was'nt quite sure. Even the accountant who done my return was also not sure about this. Any way thanks a lot for the information provided and its much valuable for me and hope its same for fellow new comers
You are welcome.
I hope apart from this, your accountant claimed all other credits which you are entitled to and did not miss out on any credit.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
