Posted on: 04-09-11 08:33:38
Hi, Have done my landing in 2009 April and at the time opened a bank account and left behind some funds there. I live with my family in the UAE and plan to move in March 2012 permanantly. As of now we still live and work in the UAE.
a) Do I have to pay tax while I am residing and working in UAE?
b) Is there something called a world income on which I pay tax in Canada?
c) If I have to pay tax in Canada for 2010 can I pay it in arrears and how much should I pay in terms of percentage
Also will my moving in MArch 2012 affect my PR status?
Appreciate a response
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Just having a bank account does not make you resident for tax purpose. Generally, you are a non-resident for tax purpose if you do not work and live in Canada, do not have a house or a family in Canada and do not have any income from Canadian sources. If this is applicable to you, you do not have to pay Canadian income tax on your world income.
If you have any interest on the funds in the bank, ask your bank to withhold non-resident tax - if not already withheld, pay this amount to CRA (generally it is 15% of the interest earned, but call your bank/CRA to confirm).
After permanently moving to Canada in March 2012, you will become resident of Canada for tax purpose on the date of your arrival in Canada. If you are allowed into Canada as a PR (at the POE), your immigration status will be PR of Canada.
Quote:
Originally posted by Moving to Canada
Hi, Have done my landing in 2009 April and at the time opened a bank account and left behind some funds there. I live with my family in the UAE and plan to move in March 2012 permanantly. As of now we still live and work in the UAE.
a) Do I have to pay tax while I am residing and working in UAE?
b) Is there something called a world income on which I pay tax in Canada?
c) If I have to pay tax in Canada for 2010 can I pay it in arrears and how much should I pay in terms of percentage
Also will my moving in MArch 2012 affect my PR status?
Appreciate a response
Quote:
Originally posted by cdn_dude
Just having a bank account does not make you resident for tax purpose. Generally, you are a non-resident for tax purpose if you do not work and live in Canada, do not have a house or a family in Canada and do not have any income from Canadian sources. If this is applicable to you, you do not have to pay Canadian income tax on your world income.
If you have any interest on the funds in the bank, ask your bank to withhold non-resident tax - if not already withheld, pay this amount to CRA (generally it is 15% of the interest earned, but call your bank/CRA to confirm).
After permanently moving to Canada in March 2012, you will become resident of Canada for tax purpose on the date of your arrival in Canada. If you are allowed into Canada as a PR (at the POE), your immigration status will be PR of Canada.
Quote:
Originally posted by Moving to Canada
Hi, Have done my landing in 2009 April and at the time opened a bank account and left behind some funds there. I live with my family in the UAE and plan to move in March 2012 permanantly. As of now we still live and work in the UAE.
a) Do I have to pay tax while I am residing and working in UAE?
b) Is there something called a world income on which I pay tax in Canada?
c) If I have to pay tax in Canada for 2010 can I pay it in arrears and how much should I pay in terms of percentage
Also will my moving in MArch 2012 affect my PR status?
Appreciate a response
Once u become a PR and have any ties in Canada (e.g. bank account,health card etc), u have to pay income tax on ur worldwide income. It does not matter if ur income is from Canadian sources or not. If u already paid the tax in other country then u can get the tax credit.
It is very clear that if you work and live in other country, you still have to file income tax return in Canada provided u r Canadian PR/Citizen. Filing income tax return and paying tax are two different things. If u do not pay tax in your resident country then u will pay tax in Canada.
Quote:
Originally posted by web2000
Once u become a PR and have any ties in Canada (e.g. bank account,health card etc), u have to pay income tax on ur worldwide income. It does not matter if ur income is from Canadian sources or not.
-- This is incorrect. The major ties are the ones that matter (real estate property and family n Canada). The bank account and health card are ties, but are not significant while considering the residency for income tax purpose.
Quote:
Originally posted by cdn_dude
Quote:
Originally posted by web2000
Once u become a PR and have any ties in Canada (e.g. bank account,health card etc), u have to pay income tax on ur worldwide income. It does not matter if ur income is from Canadian sources or not.
-- This is incorrect. The major ties are the ones that matter (real estate property and family n Canada). The bank account and health card are ties, but are not significant while considering the residency for income tax purpose.
Any link to prove your thought? CRA website info or anything else.
As far as I know only CRA agent can tell if u r resident for tax purposes. There is no info I have found that says if I have only secondary ties then I don't have to pay any tax in Canada.
Quote:
Originally posted by web2000
Quote:
Originally posted by cdn_dude
Quote:
Originally posted by web2000
Once u become a PR and have any ties in Canada (e.g. bank account,health card etc), u have to pay income tax on ur worldwide income. It does not matter if ur income is from Canadian sources or not.
-- This is incorrect. The major ties are the ones that matter (real estate property and family n Canada). The bank account and health card are ties, but are not significant while considering the residency for income tax purpose.
Any link to prove your thought? CRA website info or anything else.
As far as I know only CRA agent can tell if u r resident for tax purposes. There is no info I have found that says if I have only secondary ties then I don't have to pay any tax in Canada.
While it is correct that only CRA can determine your 'Residency Status' but it seems that in the case of OP as he/she does not have 'primary ties', he/she would be treated as non - resident of Canada for taxation purposes.
Further information can be looked at CRA's website by following this http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Originally posted by web2000
Any link to prove your thought? CRA website info or anything else.
-- The CRA web site. Any agent can tell you about the primary ties. Also, see Pramod ji's response above.
