Do I tell the truth about my income and how

[swervetech69]

I will sponsor my wife to come to Canada from Taiwan in about a month and am filling out the application now. They are asking of course for my employment information for the past 12 months. I have been teaching English here and am paid in cash each month, although i do pay taxes. So i dont have pay stubs and my school lies to the Taiwanese government about my salary, they say its half of what it really is.

Do i explain this to the immigration people or just go with the number my work gives me? They say they will write an official letter saying that i have worked there for 2 years and show my salary. I do have tax recipts to show i have been working in Taiwan for 5 years and am not worried about being able to sponsor, i have about 40,000cdn in my bank account.

If i explain that in Taiwan employers often under report foreigners salaries can i get in trouble with revenue Canada? Should i tell them about my private tutoring that gets me about 800$ on the side of my job? I dont want to lie but also want to cover my ass, its just how things are done here in Taiwan.

 

[sidkrose]

I'm pretty sure you should just tell the truth, and back it up. I doubt that Revenue Canada has access to anything other than the info you provide them with (though you should tell them the truth too...auditing is a bitch, I've heard )

Also, I seriously doubt that the Taiwanese government would find out that your employers have been under-reporting you salary, and if they do, it's your employer's problem, not yours, right?

 

[swervetech69]

Since hey dont have pay stubs do you think just a letter from my employer about my salary with a work permit should do the trick? The application manual doesnt really cover this for people who worked outside of Canada. I may just go with what the school writes as my salary to make things less complicated, im not worried about being rejected as a sponsor as im sponsoring a spouse and have a good amount of cash. Thanks for the reply

 

[MDSB]

Always tell the truth!

 

[toby]

I'll take the contrary position and advise you to declare the income shown in your employer's letter. Sometimes you open a pandora's box in telling bureaucrats something they can't see corroborated in the documentation. If you can corroborate $20,000 (I recall that you mentioned you make $40,000, but the school reports half that), then why not mention $20,000?

You are not misrepresenting any important fact in your sponsorship application, because sponsors don't have to meet a minimum income level.

In fact, I once asked why CIC even asks for income. Finally someone (I think it was Leon) came up with a reason, but I forget what it was. And I don't think the reason applied to the usual run of sponsors.

So, I'd go with the official, lower income amount IF -- repeat IF -- you have not been filing tax returns in Canada for the years spent abroad. But if you have been filing Canadian tax returns, and reported only the lower amount, I'd go back four years and re-file correct tax returns. Otherwise, if you were ever found out in Canada, you'd suffer a world of hurt.

 

[CharlieD10]

I'm going to agree with toby. Declare what you can substantiate, which will be the amount your employer actually reports and what you paid taxes on in Taiwan.

 

[locolynn]

I'll take the contrary position and advise you to declare the income shown in your employer's letter. Sometimes you open a pandora's box in telling bureaucrats something they can't see corroborated in the documentation. If you can corroborate $20,000 (I recall that you mentioned you make $40,000, but the school reports half that), then why not mention $20,000?

You are not misrepresenting any important fact in your sponsorship application, because sponsors don't have to meet a minimum income level.

In fact, I once asked why CIC even asks for income. Finally someone (I think it was Leon) came up with a reason, but I forget what it was. And I don't think the reason applied to the usual run of sponsors.

So, I'd go with the official, lower income amount IF -- repeat IF -- you have not been filing tax returns in Canada for the years spent abroad. But if you have been filing Canadian tax returns, and reported only the lower amount, I'd go back four years and re-file correct tax returns. Otherwise, if you were ever found out in Canada, you'd suffer a world of hurt.

Agreed. Currently in Taiwan...everyone does a little under the table work (except me of course ;p) soooo not a big deal. Report what is officially reported and forget about it.

Locolynn

 

[cleo]

Have you declared yourself a non resident so you don't have to pay taxes? If you have worked and live for 2 years in Taiwan you should've done this so you don't have to pay taxes. But seriously, you should be paying taxes. Sorry, but I worked in China for 4 years and I always paid my Cdn taxes. There are ways around it to pay less, but you should not dodge paying taxes and then expect to have all the perks of being Canadian. (just my two cents worth). Yes, you should tell the truth to immigration , but don't expect that you will never be found out. However, to sponsor a spouse you don't really have to have a minimum income anyway, so just report as little as you can. I agree with Toby on that one too.

 

[swervetech69]

I called a tax laywer in Canada and he says i did nothing wrong. I paid taxes in taiwan and kept records so when i go back i sipmly have to show this. Since my income on paper was so little i wont have to pay anything in Canada. I decided to just go with the amount my school wrote down, makes things less complicated.

 

[cleo]

Ok that's good. Sorry to get angry about this, but I know a lot of people think they don't have to pay taxes. Many of my colleagues feigned ignorance and I found their irresponsibility really annoying . Good luck with your application.

 

[toby]

Have you declared yourself a non resident so you don't have to pay taxes? If you have worked and live for 2 years in Taiwan you should've done this so you don't have to pay taxes. But seriously, you should be paying taxes. Sorry, but I worked in China for 4 years and I always paid my Cdn taxes. There are ways around it to pay less, but you should not dodge paying taxes and then expect to have all the perks of being Canadian. (just my two cents worth). Yes, you should tell the truth to immigration , but don't expect that you will never be found out. However, to sponsor a spouse you don't really have to have a minimum income anyway, so just report as little as you can. I agree with Toby on that one too.

Hi Cleo:

I wasn't advocating "dodging" taxes that should have been paid to Canada. I was advising following the Tax Act precisely, and if the poster had truly cut financial ties with Canada, the Act says no need to pay taxes to Canada.

Without getting into a long debate about whether this is ethical, I feel that if someone is not benefiting from Canada's advantages, one does not morally owe taxes. If one benefits from the advantages that Canada offers, then for sure pay all taxes owed; don't seek to avoid them.

I know that the USA has a different approach, that American citizens are taxpayers for life even when they live abroad, but tax rates are lower in the States throughout the citizen's working life, and so paying taxes in expat retirement might be viewed as a "payback", hence morally defensible (as well as legally required).

But back to Canada: if the Tax Act exempts certain expats from paying taxes, why do you get annoyed when those expats apply the Act and don't pay taxes?

 

[cleo]

You have to pay taxes unless you declare yourself a non resident. And that means cutting all ties. I think it is irresponsible to suddenly say, "Oh, I want to sponsor someone to live in Canada with me" when you have not been paying any taxes. A lot of people work abroad, take advantage that maybe they might not have to pay taxes (when they are legally obligated to) and then they think they are entitled to all the privileges of being Canadian just because they have citizenship. I think that is BS. Why do you think we have all these great services here? Yeah, we have a lot of trees but does money grow on them?

 

[steaky]

Yeah, we have a lot of trees but does money grow on them?

Yes, British Columbia sells lumber to China.

 

[swervetech69]

Jesus Cleo get the facts right. I havnt gotten the advantages of being Canadian during this time, my health insurance was cancelled and will be returned a few months after i get back. According to my moms tax laywer since i was paying taxes in Taiwan i wont be double taxed, espically since my salary here is peanuts in Canadian dollars. Im irresponsible because i want to sponsor my wife? Can you please explain that? According to the Canadian tax code all i have to do when i get back is sho my tax stubs from Taiwan, explain i was working abroad, prove my measly salary and file for the years i was away. Who made you the moral tax expert?

 

[locolynn]

Jesus Cleo get the facts right. I havnt gotten the advantages of being Canadian during this time, my health insurance was cancelled and will be returned a few months after i get back. According to my moms tax laywer since i was paying taxes in Taiwan i wont be double taxed, espically since my salary here is peanuts in Canadian dollars. Im irresponsible because i want to sponsor my wife? Can you please explain that? According to the Canadian tax code all i have to do when i get back is sho my tax stubs from Taiwan, explain i was working abroad, prove my measly salary and file for the years i was away. Who made you the moral tax expert?

You are totally right. I'm on my second tour here in Taiwan and your info is bang on. That's exactly what I did the last time I went home. This time I'm actually hoping to retain my residency so I WILL be double taxed. Just hoping the fact that I have two dependents will make it all equal out.

Oh and p.s. Even though I should be able to retain residency for tax purposes I STILL don't get to maintain my healthcare...so really the two aren't connected in a tangible everyday kinda way.

Locolynn