Posted on: 20-05-17 14:45:48
May I seek your guidance and help for the following matters.
My parents will land here in Canada next month as immigrants (parents and grandparents category), and will stay here around 3 weeks and then go back to their employment. They are working in a country that has Double Taxation Avoidance Agreement (DTAA) with Canada which states that the income (salaries) to be taxed in the state where it is received.
Currently, they are not sure to settle in Canada or not. Apart from PR card, they intend to keep no other ties with Canada, till the time if they decide to settle here (may be 3-4 years down the line)
My queries are:
•Is it mandatory to file income tax returns even after soft landing of 3 weeks or one can file the ITR when one decides to finally settle here?
•Can they bring any amount of money later when they decide to settle here without any Income tax related issue?
•In a situation, when they do not file returns for all these years after landing and also do not stay here and decide not to settle here, can they gift their assets/money to their children without and IT issue?
Please accept my sincere thanks and kind regards in advance.
I never knew there was something like a soft landing, probably must be a hard landing too. So when you soft land, do you declare that to the immigration authorities, that you don't intend to stay more than 3 weeks. I hope you realize the implications of declaring. Just ensure that they receive their PR card prior to departure. There have been instances when people are called in for a re-take of their photograph or asked to collect their PR card in person.
•Is it mandatory to file income tax returns even after soft landing of 3 weeks or one can file the ITR when one decides to finally settle here?
Technically, once you land, you get a SIN at the airport, which means you're expected to file your returns at year end. Your original entry date is your date of landing. There's no 2nd entry date.
•Can they bring any amount of money later when they decide to settle here without any Income tax related issue?
Best to check with immigration authorities. If the bring in more than a certain amount (I think $10K) you're supposed to declare it, failing to do so, can result in confiscation of the money. This happened to someone I know.
•In a situation, when they do not file returns for all these years after landing and also do not stay here and decide not to settle here, can they gift their assets/money to their children without and IT issue?
I'll let other's chime in on this one, but again best to check with immigration authorities.
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SS
Reiki Grand Master
I express my sincere thanks to Mr. Sude Singh answering the queries.
Regarding receiving PR card before leaving Canada, I will courier these to them once ready. A small risk of getting PR delayed due to photo or some other issue is always there. Let us hope for the best.
Regarding filing the tax in Canada, my understanding is that as my parents stay in another country for indefinite period of time and even may not settle here in Canada; further more they have not established any kind of residential ties with Canada and so will qualify as non-resident Canadians for tax purpose till the time they become residents and establish residential ties in Canada.
My research shows that Non-resident Canadians are taxed on the income from Canadian sources only and not on the worldwide income. My sense is that my parents need not even file the tax returns as neither they will have to pay any tax nor will claim any refund/benefits from Canada. I would request from all of you if you could opine on the above subject or to verify its correctness.
References:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html
In continuation of above, I would like to add supplementary link. My parents do not fall into any of the conditions for filing tax. Please refer to the link below.
Do you have to file a return?
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.html
Quote:
Originally posted by Tony Arora
I express my sincere thanks to Mr. Sude Singh answering the queries.
Regarding receiving PR card before leaving Canada, I will courier these to them once ready. A small risk of getting PR delayed due to photo or some other issue is always there. Let us hope for the best.
Regarding filing the tax in Canada, my understanding is that as my parents stay in another country for indefinite period of time and even may not settle here in Canada; further more they have not established any kind of residential ties with Canada and so will qualify as non-resident Canadians for tax purpose till the time they become residents and establish residential ties in Canada.
My research shows that Non-resident Canadians are taxed on the income from Canadian sources only and not on the worldwide income. My sense is that my parents need not even file the tax returns as neither they will have to pay any tax nor will claim any refund/benefits from Canada. I would request from all of you if you could opine on the above subject or to verify its correctness.
References:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html</font>
Yup, no residential ties, no tax return has to be filed by them.
Don't apply for OHIP card or Drivers License or Credit Card or even a bank account, when they are here, so they won't have any residential ties to Canada.
PR card will be given to them, by mail later on. That's all you need to re enter Canada.
Not sure if they are automatically enrolled and an application for SIN is automatically made, when they land at the airport.
In case its not automatically applied, don't even bother applying for the SIN, even less residential ties to Canada.
Anyways your parent's won't like it here, like most immigrant parent's. They have a much better social and cultural life back home.
They will find Canada to be a dull, boring, cold, & socially and culturally backward country. They will even face racism as old folks are deemed as a burden on the Canadian healthcare system and so called social programs like OAS, GIS.
They won't have the same personal and financial freedom as back home. They will be bored to death in this country and the cold bitter winter's will surely depress them. Their only solace will be meeting their kids and grand children.
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I am a Mens and not a Womens.
Quote:
Originally posted by Tony Arora
May I seek your guidance and help for the following matters.
My parents will land here in Canada next month as immigrants (parents and grandparents category), and will stay here around 3 weeks and then go back to their employment. They are working in a country that has Double Taxation Avoidance Agreement (DTAA) with Canada which states that the income (salaries) to be taxed in the state where it is received.
Currently, they are not sure to settle in Canada or not. Apart from PR card, they intend to keep no other ties with Canada, till the time if they decide to settle here (may be 3-4 years down the line)
My queries are:
•Is it mandatory to file income tax returns even after soft landing of 3 weeks or one can file the ITR when one decides to finally settle here?
•Can they bring any amount of money later when they decide to settle here without any Income tax related issue?
•In a situation, when they do not file returns for all these years after landing and also do not stay here and decide not to settle here, can they gift their assets/money to their children without and IT issue?
Please accept my sincere thanks and kind regards in advance.
Canada has NO Gift tax and NO Inheritance tax. Yes they can gift or you can inherit any assets or money from them, as long as the proper documentation and papers is there.
Just make sure when the money comes here its sent as a Gift or Inheritance from India. Usually you need a CA clearance in India and IT clearance from India, when you remit big amounts abroad.
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I am a Mens and not a Womens.
Thanks a million dear ICAME for covering answer to all the queries in a concise and clear way.
Just one more query. Will my parents surrender of their PR impact their chances of getting tourist or super visa later.
Thanking all in advance.
