PR Card holder lived in US. Do we have to pay tax in both countries?

[gautam_87]

We came to canada in July 2015 to activate PR status, stayed there for a week, opened joint bank account for myself and spouse with bare minimum to avoid service fee. We did not sign up for child or any other benefits, but applied for health card and SIN. Now we've returned back to canada in Feb2016 and applied for child benifits in May2016. We've paid all taxes in US for 2015, so do we need to pay tax again in Canada on 2015 US income while filing tax return here for 2015-16? Please let us know what are we required to do?

 

[canuck_in_uk]

I can't answer the tax question. I suggest you contact CRA.

What I can tell you is that you should not have applied for health care when you were not actually settling in Canada. What province are you in?

 

[gautam_87]

Thanks for response, i contacted CRA but they just said you need to file tax returns on your world income with no other information.
Now i'm in Nova Scotia but i landed in Ontario initially and applied there for all services.

 

[canuck_in_uk]

Thanks for response, i contacted CRA but they just said you need to file tax returns on your world income with no other information.
Now i'm in Nova Scotia but i landed in Ontario initially and applied there for all services.

You need to inform OHIP that you left Canada. If you claimed anything under OHIP, you will be required to pay it back.

 

[gautam_87]

I didn't claim anything from OHIP so far but i'll inform though, Thanks!

 

[keesio]

We came to canada in July 2015 to activate PR status, stayed there for a week, opened joint bank account for myself and spouse with bare minimum to avoid service fee. We did not sign up for child or any other benefits, but applied for health card and SIN. Now we've returned back to canada in Feb2016 and applied for child benifits in May2016. We've paid all taxes in US for 2015, so do we need to pay tax again in Canada on 2015 US income while filing tax return here for 2015-16? Please let us know what are we required to do?

It is tricky and I've heard different answers. On one hand, I've heard that when you activate PR status, you are considered a resident of Canada starting on that date you become PR. One the other hand, I've heard that you are considered a tax resident when you establish enough residency ties (actually settle down there). I wish I could tell you what is correct but I'm not sure. There is a similar thread where it is mentioned that you would not be a tax resident: http://www.canadavisa.com/canada-immigration-discussion-board/tax-residency-status-before-moving-to-canada-permanently-t431841.0.html

But one thing I do know is that Canada has a tax treaty with the US and in most cases you can (mostly) avoid double taxation even if you have to file taxes in both countries. This is a little tricky and is something an accountant who specializes in crossborder taxation would best handle.