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PR and Taxes

Dutta1503

Newbie
Jun 16, 2021
9
0
Hello all,
I am the primary applicant for the Canadian PR . My wife is the dependent . presently I am working outside Canada. I have some queries before moving to Canada:

1. if the primary applicant is unable to complete the 730 days requirement , and dependent complete the requirements , would the PR be renewed for the dependent.
2. if I take a house in Canada on rent in my name , would I have to pay income tax on the same.
3. since i had got my PR in 2019 and and planning to shift now , would i have to pay income tax retrospectively. what is the criteria , by which i have to start paying tax and how same can be avoided if I am not moving permanently and only shifting my family to Canada.

rgds,
 

steaky

VIP Member
Nov 11, 2008
14,298
1,628
Job Offer........
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Hello all,
I am the primary applicant for the Canadian PR . My wife is the dependent . presently I am working outside Canada. I have some queries before moving to Canada:

1. if the primary applicant is unable to complete the 730 days requirement , and dependent complete the requirements , would the PR be renewed for the dependent.
2. if I take a house in Canada on rent in my name , would I have to pay income tax on the same.
3. since i had got my PR in 2019 and and planning to shift now , would i have to pay income tax retrospectively. what is the criteria , by which i have to start paying tax and how same can be avoided if I am not moving permanently and only shifting my family to Canada.

rgds,
Once you and your wife formally became PR, each of you will have to meet their own RO. So:

1) Your wife can renew her PR, but you cannot;
2) Yes, not only because you rent a home. But also because your wife is in Canada
3) What do you mean by shifting family to Canada?
 
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Buletruck

VIP Member
May 18, 2015
6,667
2,521
If you have a wife and children living in Canada, you are deemed a Canadian resident and need to report your income to CRA. Whether you pay taxes and how much will depend on any tax treaties with the country you work in.
 
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Homeowner

Member
Jun 12, 2021
19
3
Hello all,
I am the primary applicant for the Canadian PR . My wife is the dependent . presently I am working outside Canada. I have some queries before moving to Canada:

1. if the primary applicant is unable to complete the 730 days requirement , and dependent complete the requirements , would the PR be renewed for the dependent.
2. if I take a house in Canada on rent in my name , would I have to pay income tax on the same.
3. since i had got my PR in 2019 and and planning to shift now , would i have to pay income tax retrospectively. what is the criteria , by which i have to start paying tax and how same can be avoided if I am not moving permanently and only shifting my family to Canada.

rgds,
For your queries here are few real facts from a canadian citizen :
1- Whosoever complete the legal requirements for 730 days for PR renewal will get their PR without any issues. Please avoid taking advice from novices as they can mislead you and scare you for no reason. As far as your own issue of non fulfillment of 730 days for PR renewal, send mail to CIC and request them to grant you some extension, as these are unprecedented times with lock downs worldwide limiting travel for many for any reason including support to their family or financial obligations. So do not worry and try and send a mail to CIC for a request for granting you some extension on the same. They are reasonable and for sure will support your application.

2- Taking a house in canada for rent has nothing to do with you income tax. A income tax is on your income not on your expenses. On the contrary you may get some relaxation on your taxes when you file it for the rent you pay. BTW my house in Mississauga is getting vacated by an immigrant family in the first week of Aug after their two year stay and should you be interested than drop me a liner to discuss. I support immigrants as we also started our journey couple of year ago in the same way and understand the hardship immigrant face initially. That is why we give first preference to new immigrants over local Canadians.

3- Canada allow you to file your taxes back dated should you wish to file them. By law the moment you become PR your worldwide income is taxable as per CRA provided you want to declare the same. In most cases we have seen people only declare their local income in Canada for taxation. But remember filling your taxes for the previous year including your worldwide income has lot many benefits in Canada. One very important benefit is that for any lending be it mortgage , credit card or any other loan Canadian banks ask for 3 years Notice of Assessment towards the taxes you filed. Now if you had filed the previous years taxes back dated you get an advantage for any lending request easily should you income qualify for the same. If not than also do not panic. You can file the taxes when you moved to Canada and from that year onwards.
 
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canuck78

VIP Member
Jun 18, 2017
52,959
12,759
For your queries here are few real facts from a canadian citizen :
1- Whosoever complete the legal requirements for 730 days for PR renewal will get their PR without any issues. Please avoid taking advice from novices as they can mislead you and scare you for no reason. As far as your own issue of non fulfillment of 730 days for PR renewal, send mail to CIC and request them to grant you some extension, as these are unprecedented times with lock downs worldwide limiting travel for many for any reason including support to their family or financial obligations. So do not worry and try and send a mail to CIC for a request for granting you some extension on the same. They are reasonable and for sure will support your application.

2- Taking a house in canada for rent has nothing to do with you income tax. A income tax is on your income not on your expenses. On the contrary you may get some relaxation on your taxes when you file it for the rent you pay. BTW my house in Mississauga is getting vacated by an immigrant family in the first week of Aug after their two year stay and should you be interested than drop me a liner to discuss. I support immigrants as we also started our journey couple of year ago in the same way and understand the hardship immigrant face initially. That is why we give first preference to new immigrants over local Canadians.

3- Canada allow you to file your taxes back dated should you wish to file them. By law the moment you become PR your worldwide income is taxable as per CRA provided you want to declare the same. In most cases we have seen people only declare their local income in Canada for taxation. But remember filling your taxes for the previous year including your worldwide income has lot many benefits in Canada. One very important benefit is that for any lending be it mortgage , credit card or any other loan Canadian banks ask for 3 years Notice of Assessment towards the taxes you filed. Now if you had filed the previous years taxes back dated you get an advantage for any lending request easily should you income qualify for the same. If not than also do not panic. You can file the taxes when you moved to Canada and from that year onwards.
1. You can’t ask for an extension of your RO. If you fail to meet your RO and are reported or you file for PRTD based on H&C you can provide your H&C reasons. I would not count on RO being relaxed just due to covid. You should attempt to return to Canada as soon as possible to be as close as possible to your RO if you are unable to meet your RO. The closer you are to your RO requirement the more likely you will not have problems at the POE.

2. Income taxes involve more than just your income. In Canada, paying rent or paying a mortgage does not lead to tax benefits.

3. If you are a tax resident or your spouse is a tax resident, not reporting international income of any type is tax fraud and is a crime. Reporting international income is not optional. You can be a tax resident without living in Canada. Would contact CRA and they will determine if you have been a tax resident since 2019 and whether you are a tax resident going forward if you are not living in Canada. For example if you have a spouse of children living in Canada you are likely a tax resident and will need to file taxes on your international income. Whether there is a tax treaty with the country you are living in will factor into the amount you have to pay in Canadian taxes.
 

YVR123

VIP Member
Jul 27, 2017
6,431
2,460
For your queries here are few real facts from a canadian citizen :
1- Whosoever complete the legal requirements for 730 days for PR renewal will get their PR without any issues. Please avoid taking advice from novices as they can mislead you and scare you for no reason. As far as your own issue of non fulfillment of 730 days for PR renewal, send mail to CIC and request them to grant you some extension, as these are unprecedented times with lock downs worldwide limiting travel for many for any reason including support to their family or financial obligations. So do not worry and try and send a mail to CIC for a request for granting you some extension on the same. They are reasonable and for sure will support your application.

2- Taking a house in canada for rent has nothing to do with you income tax. A income tax is on your income not on your expenses. On the contrary you may get some relaxation on your taxes when you file it for the rent you pay. BTW my house in Mississauga is getting vacated by an immigrant family in the first week of Aug after their two year stay and should you be interested than drop me a liner to discuss. I support immigrants as we also started our journey couple of year ago in the same way and understand the hardship immigrant face initially. That is why we give first preference to new immigrants over local Canadians.

3- Canada allow you to file your taxes back dated should you wish to file them. By law the moment you become PR your worldwide income is taxable as per CRA provided you want to declare the same. In most cases we have seen people only declare their local income in Canada for taxation. But remember filling your taxes for the previous year including your worldwide income has lot many benefits in Canada. One very important benefit is that for any lending be it mortgage , credit card or any other loan Canadian banks ask for 3 years Notice of Assessment towards the taxes you filed. Now if you had filed the previous years taxes back dated you get an advantage for any lending request easily should you income qualify for the same. If not than also do not panic. You can file the taxes when you moved to Canada and from that year onwards.
Do not mislead others.

1. there is NO formal extension procedure for people who doesn't meet their RO. Upon they enter, or when they apply for PRTD, they may be consider on H&C. But there is NO process as your mentioned in the reply to "grant extension".

2. If you own a house and rent it out, the income is taxable, but owner can also account into expenses. Talk to a Canadian accountant to consult on the details. Your wording is very misleading. The income and expenses of the rental property BOTH counts. So it has EVERYTHING to do with your income. Do not adveritze your house rental everywhere....

3. OP has family and ties in Canada. He is very likely deem a tax resident (consult to CRA). Any mean of hiding oversea income or capital gain is TAX fraud. And as mentioned is a very serious crime. Do not start your new life committing a crime. You can file tax that you didn't if you found out that you actually should have done so. Find an accountant and do that. Pay the tax owing and the penalty (late payment will come with penalty and interest)
 

Buletruck

VIP Member
May 18, 2015
6,667
2,521
Do not mislead others.

1. there is NO formal extension procedure for people who doesn't meet their RO. Upon they enter, or when they apply for PRTD, they may be consider on H&C. But there is NO process as your mentioned in the reply to "grant extension".

2. If you own a house and rent it out, the income is taxable, but owner can also account into expenses. Talk to a Canadian accountant to consult on the details. Your wording is very misleading. The income and expenses of the rental property BOTH counts. So it has EVERYTHING to do with your income. Do not adveritze your house rental everywhere....

3. OP has family and ties in Canada. He is very likely deem a tax resident (consult to CRA). Any mean of hiding oversea income or capital gain is TAX fraud. And as mentioned is a very serious crime. Do not start your new life committing a crime. You can file tax that you didn't if you found out that you actually should have done so. Find an accountant and do that. Pay the tax owing and the penalty (late payment will come with penalty and interest)
Note that reporting income and having to pay additional taxes are two entirely separate issues. Depending on the tax rate in the country you work and related tax treaties, amounts paid range from nothing to pretty small amounts.
 

YVR123

VIP Member
Jul 27, 2017
6,431
2,460
Note that reporting income and having to pay additional taxes are two entirely separate issues. Depending on the tax rate in the country you work and related tax treaties, amounts paid range from nothing to pretty small amounts.
true. So he should consult with an accountant.