Non Resident hit with a big tax by C-R-A
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Location: God's own country
Posted on: 04-06-12 12:34:26
Canada Leaving date : March 29
* Date varied slightly to confuse immigration Canada automated program
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I am a Gents and not a Ladies.
TK,
Thanks for posting details from your NOA. One thing is clear from the NOA that they did not inflate your income for the whole year but prorated the exemptions, and that is what I have mentioned in my earlier posts.
However, there still seems to be some anomalies which need to be cleared in order the recheck the accuracy of tax return by CRA.
It seems that you did claim for 2 kids but they prorated the amount to $198 which comes close to 17 days only, meaning they considered you resident only till 17th January, 2012. How did you declare the NON RESIDENT status. Did you fill the required form and got some rulings from CRA. Also, did you mention in the return as your departure date as 29th March, 2011 and prorated the exemptions? Did you claim any spousal amount (or equivalent to spousal amount for any dependent)?
Please post your T4 figures as well with exact line numbers and your marital status and I will make a dummy return to check if CRA did it correctly or not. If you want complete privacy then email a copy of the T4 and T1 general to me directly and I will do it for you and see why CRA did what they did and it may save you some hard earned money.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Location: God's own country
Posted on: 04-06-12 13:16:45
Pramod:
Thanks for your mail.
I had made the T4 and T1 in Hard copy and mailed the same to the CRA thinking that they will not make any mistakes. So I donot have any copy of it.
Anyways, the Jan 17 th number may be my partners expected date of leaving Canada as informed to the CRA. I changed the date of leaving Canada after that.
Anyways, thanks for the info.. and it is heartening to see that CRA did not make any mistakes.
Peace !
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I am a Gents and not a Ladies.
Quote:
Originally posted by tamilkuravan
Pramod:
Thanks for your mail.
I had made the T4 and T1 in Hard copy and mailed the same to the CRA thinking that they will not make any mistakes. So I donot have any copy of it.
Anyways, the Jan 17 th number may be my partners expected date of leaving Canada as informed to the CRA. I changed the date of leaving Canada after that.
Anyways, thanks for the info.. and it is heartening to see that CRA did not make any mistakes.
Peace !
So TK,
It seems that my observation was correct. You did inform CRA that you would be leaving Canada on17th January, 2011 and they changed your residency in their records as of that date. May be later on you actually left Canada on 29th March, 2011 but the status was not rectified with CRA and hence they prorated the exemptions to that date only and you got reduced exemptions.
So, I believe the mystery of over charging by CRA is solved now and NON RESIDENTS have nothing to fear.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quite an intriguing case study , I must say !! :-)
Thanks for the share , TK.
TK
I was in a similiar situation,but, in my case, CRA paid me the full refund. The reasons could be that I never cease to be a resident of Canada due to having a house in Canada. Per law, having a house in Canada will deem you to be a resident of Canada. May be you can look at other avenues to prove that you are still a resident and hence would be eligible for the full deductions. Pramodji..your thoughts on this?
The other side is that I had to declare my income while in India and show evidence my tax payment in India and had to pay extra to match Canadian taxes. But, that worked out good since even though my salary was higher per Indian standards, I got the benefit of Canadian salary bracket since my salary per canadian stadnards has not been too high.
Since I am now back, I hope not to have any issues on a go forward basis.
T
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"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Location: God's own country
Posted on: 05-06-12 12:43:11
To all:
Indian taxes are much more than Canadian taxes.
But then having said that, some deductions may not be taken by the Govt. of Canada (I would guess). We can write off around 10K per month on house rent, invest 1 lakh in ELSS (stocks) and get the 1 lakh written off etc.. I doubt if Canada will ever take that into account.
However I feel that even after all these deductions, Indian taxes will be higher than the Canadian taxes and hence I donot see where we will need to pay Canada.
I am not sure if the std. Canada standard deductions would apply for tax treaty people. If it does not apply, then the Canadian taxes will be high.
Peace
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I am a Gents and not a Ladies.
