2013 Tax assessment Canada / UK

[dj322]

Hi guys,

So I arrived in Canada in April 2013 and have been teleworking from here for my UK company until late 2014. I was granted PR early 2014. After months and months of waiting around CRA finally decided I am deemed a resident and owe taxes from Apr to Dec 2013 for the tax year of 2013. However, in the meantime I had been paying taxes to the UK. I have now received a decision from CRA to say I owe taxes for 2013. I spoke to CRA today to state that I need to get a T4 from my UK employer to show that they have been paying taxes to Canada. This doesn't sound right as I'm sure my UK employer won't know about T4 forms.

I did ask if I can send my payslips to show I have been paying taxes in the UK and the guy said I could, but I feel I will still have to pay here in Canada. Or is it a case of once they have seen my payslips, they will recalculate my taxes owing due to the double tax treaty?

Alternatively, if I pay the taxes owing in Canada, can I reclaim my taxes back from the UK?

Any advice would be great,

Thanks!

 

[mooer]

Hi guys,

So I arrived in Canada in April 2013 and have been teleworking from here for my UK company until late 2014. I was granted PR early 2014. After months and months of waiting around CRA finally decided I am deemed a resident and owe taxes from Apr to Dec 2013 for the tax year of 2013. However, in the meantime I had been paying taxes to the UK. I have now received a decision from CRA to say I owe taxes for 2013. I spoke to CRA today to state that I need to get a T4 from my UK employer to show that they have been paying taxes to Canada. This doesn't sound right as I'm sure my UK employer won't know about T4 forms.

I did ask if I can send my payslips to show I have been paying taxes in the UK and the guy said I could, but I feel I will still have to pay here in Canada. Or is it a case of once they have seen my payslips, they will recalculate my taxes owing due to the double tax treaty?

Alternatively, if I pay the taxes owing in Canada, can I reclaim my taxes back from the UK?

Any advice would be great,

Thanks!

Hi,

As far as I understand it, you still need to file a tax return here in Canada if you are classed as "resident" here for tax purposes (number of days in the country etc). You have to report worldwide income and any tax paid. From there you will have to pay any balance of tax here if the tax would have been more, but under the double taxation treaty between the UK and Canada, you don't have to pay tax twice.

Probably best you ask an accountant for "official" advice!