Dear Dubai applicants,
I have a question with regard to taxation. Once I get PR, I am planning to send my wife and kid to Canada to maintain PR while I continue to work here in Dubai. My wife might not work initially and might use that time to gain a Canadian educational qualification and during the first 1 or 2 years, I am planning to fund her from here in Dubai.
I am aware that many people from Dubai tend to do this for a little while, save money and then at a later date join the family in Canada.
I have a question based on Canadian tax.
1 - From the day my wife, kid and I " Land" in Canada, I am bound to pay and file taxes in Canada due to the fact that residents are taxed for worldwide income? Correct?
2 - Since my wife and kid are living in Canada, I cannot claim "Non Resident" status for tax purposes even though I am living in Dubai? Is that correct?
3 - Since I have to declare my UAE income, I will have to pay roughly 30% of my income to Canada Revenue Agency? Correct?
4 - Is there anyway, I can under declare my income to pay less tax? How will the CRA know? is there anyway they can find out my actual UAE salary?
5 - IF i deposit money into my wife's Canadian Bank account every month, will she be taxed or is that termed as a Gift and hence not taxed? She wont be working atleast for a year while she studies. Of course the money I send to my wife will be less than what I am declaring as my income.
Please advice on this. Living in UAE, we are not used to tax and suddenly giving 30% of my UAE income living and working in UAE is a big amount!
Thanks in advance!