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Parent Sponsorship Tax

M

Mirabadi

Member
Apr 26, 2019
12
0
I payed tax in 2015, 2016, 2017 and I applied for parent sponsorship in January 2019. My question is:
Should I pay tax again for 2018 as a Minimum Necessary Income requirement for sponsors of parents and grandparents again? Or I can pay tax as a normal and show my expenses in 2018 as well?
 
M

Mirabadi

Member
Apr 26, 2019
12
0
The tax agency had told us that we should pay Minimum Necessary Income requirement for sponsors of parents and grandparents and we cannot show our expenses! We did it in 2015 - 2016 - 2017. Also, I applied for parent sponsorship in January 2019 and fortunately ,y application has accepted and I should send the necessary documents up to 60 days. And today I am going to pay tax for 2018 but I do not know I should pay same previous years? Or I can shoe my expenses and reduce my taxes?
 
k.h.p.

k.h.p.

VIP Member
Mar 1, 2019
8,810
2,249
Canada
If your agency has been telling you to file taxes so that you look like you're making the MNI, and thus you've been paying taxes at the rate applicable to the MNI, you've been lying to the CRA. Your agency has been lying to you to make you look like you're eligible for the MNI but you may not be.

If you have actually had a lower income than the MNI but have somehow been misrepresenting it, you may have a large issue on your hands. You'll have been paying more tax than you should have, and if CRA or IRCC audits your income taxes, they will possibly find out that your income is not what you had reported.
 
M

Mirabadi

Member
Apr 26, 2019
12
0
No! Never! We showed our taxes more than minimum. In fact, it was completely real. But we did not show just the expenses receipts in these years based on the tax office tip.
 
k.h.p.

k.h.p.

VIP Member
Mar 1, 2019
8,810
2,249
Canada
So your income, which is verifiable by T4s, has always been more than the MNI, but your immigration agency told you to not claim tax credits you could have?
 
M

Mirabadi

Member
Apr 26, 2019
12
0
k.h.p. said:
So your income, which is verifiable by T4s, has always been more than the MNI, but your immigration agency told you to not claim tax credits you could have?
Click to expand...
No! Never! We showed our taxes more than minimum. In fact, it was completely real. But we did not show just the expenses receipts in these years based on the tax office tip.
 
M

Mirabadi

Member
Apr 26, 2019
12
0
k.h.p. said:
Have you been filing fraudulent tax returns in order to show the MNI?
Click to expand...
No! Never! We showed our taxes more than minimum. In fact, it was completely real. But we did not show just the expenses receipts in these years based on the tax office tip.
 
k.h.p.

k.h.p.

VIP Member
Mar 1, 2019
8,810
2,249
Canada
That's not my question. Your income has always been high enough for MNI, but your agency told you not to claim tax credits that would have reduced your taxes?

What exactly did your agency tell you to do?

The MNI figure, as far as I can tell, is a gross income, not a net income, figure, and tax credits and expenses wouldn't factor into it.
 
M

Mirabadi

Member
Apr 26, 2019
12
0
k.h.p. said:
That's not my question. Your income has always been high enough for MNI, but your agency told you not to claim tax credits that would have reduced your taxes?

What exactly did your agency tell you to do?

The MNI figure, as far as I can tell, is a gross income, not a net income, figure, and tax credits and expenses wouldn't factor into it.
Click to expand...
Yes, my agency told us not to claim tax credits that would have reduced our taxes.
 
M

Mirabadi

Member
Apr 26, 2019
12
0
canuck78 said:
Confused. Nothing should change when it comes to filing your taxes whether you are filing for sponsorship or not.
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In fact, I should pay tax for 2018 and do not show my business expenses in 2018 as well? Because I did during three sequences years.
 
k.h.p.

k.h.p.

VIP Member
Mar 1, 2019
8,810
2,249
Canada
M

Mirabadi

Member
Apr 26, 2019
12
0
k.h.p. said:
According to @scylla, over here: https://www.canadavisa.com/canada-immigration-discussion-board/threads/lico-after-or-before-tax.511637/, the MNI figure is a before tax / gross income figure.

So if your gross income always exceeded the MNI, I have no idea why your agents would have told you not to claim tax credits.

Did your business expenses reduce the amount of personal income you took home? Did you actually get, in your bank, the MNI in terms of income?
Click to expand...
Maybe because my income was just a little more than minimum and I claimed exactly the real income in theses years. Maybe the tax agency worried about that, because it was so close to the minimum income for parent sponsorship and he asked my do not claim the expenses.
But my final question is that:
I have three years (2015 - 2016 - 2017) which I paid taxes. Are these enough for showing to parent sponsorship documents in 2019? Or they need my tax in 2018 as well? It doesn't mean that I do not want to pay tax for 2018, but i just want to show the expenses in 2018 in my tax reports as well!
 
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