Immigrants
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In Canada, our personal tax year is based on the calendar year, from January 1 to December 31. Our tax payable deadline is April 30 after the year-end. If you have tax payable and file your tax return late, you will be charged both the late penalty and interest based on the published prescribed rate. You must file a tax return if you owe tax or wish to receive a refund. Even if you have no income to report or tax to pay, you may be eligible for certain payments or credits, such as GST/HST credits and Canada Child Tax Benefit payments. However, in order to receive these payments or credits, you must file an income tax return.
Canadian residents pay income taxes based on their world-wide income. However, Canadian residents are also protected against double taxation since they can report foreign tax paid to reduce their Canadian income tax. When you immigrate to Canada, most property you own is deemed to be acquired by you at its fair market value on your date of immigration. When you emigrate from Canada, most property you own is deemed to be disposed at its fair market value on the date of your emigration. When filing your first or last year Canadian income tax return, you will need to prorate some of the personal tax credit and report your world-wide income when you are a Canadian resident. If this is the very first year you become a resident of Canada (and have never been a Canadian resident before), you do not need to file the foreign income verification statement (T1135). However, if you own foreign investment property costing more than $100,000 or partnerships that hold more than $100,000 in foreign investment properties and whose non-resident members’ share of income of loss is less than 90% during the period, you will need to file T1135 in future years. If you emigrate from Canada, you should file a determination of residency status with the Canada Revenue Agency and include a T1161 List of Properties by an Emigrant of Canada with the personal tax return. Our firm offers comprehensive personal tax planning and filing services to help you understand the Canadian tax system. |
If you are looking for our assistance, please complete the appropriate checklists and call us at 604-267-1220 or send us an e-mail at info@kyipcpa.com for an appointment.