Resident of Canada for income tax purposes

[sara_vv]

Hi,

I am having trouble working out when I became a resident of Canada for income tax purposes. I am a UK citizen, my husband is Canadian and my son is dual. We have lived in the UK for the last 20 years but we are now living in Canada. Here is a timeline of relevant events:

January - submit PR application
August - we all arrive in country (me as visitor) still working in UK remotely. live with family for free. no car
October - get PR / land etc. Get SIN same day
April - all return to UK
May - all return to Canada, get health card, open bank account, credit card etc.
July - rent accommodation
December - stop UK job
January - get Canadian job, buy car

The reason it is important is that my pay in the UK is not a huge amount and is partly distributed via dividends so I pay very little tax there but here as far as I can tell, my whole income including dividends will be taxed so I am potentially facing a larger secondary tax bill here.

I have not been asked to file a tax return here yet (not sure if you do get asked or if it the onus is on you to file) but I need to work out from what date I need to include my foreign income.

Thanks

 

[mad_hatter]

Based on your timeline, I would venture to say you became a Canadian tax resident in January. If your income is not a huge amount, whether you became a tax resident in January or May may not make a big difference in the final tax bill. If you become a tax resident in January you are entitled to the full personal exemption. For example, if you live in BC, your base amounts are $12,069 federal and $10,682 provincial. However, if you become a tax resident in May, you are only entitled to 7/12 of the base amounts.

 

[canuck_in_uk]

Hi,

I am having trouble working out when I became a resident of Canada for income tax purposes. I am a UK citizen, my husband is Canadian and my son is dual. We have lived in the UK for the last 20 years but we are now living in Canada. Here is a timeline of relevant events:

January - submit PR application
August - we all arrive in country (me as visitor) still working in UK remotely. live with family for free. no car
October - get PR / land etc. Get SIN same day
April - all return to UK
May - all return to Canada, get health card, open bank account, credit card etc.
July - rent accommodation
December - stop UK job
January - get Canadian job, buy car

The reason it is important is that my pay in the UK is not a huge amount and is partly distributed via dividends so I pay very little tax there but here as far as I can tell, my whole income including dividends will be taxed so I am potentially facing a larger secondary tax bill here.

I have not been asked to file a tax return here yet (not sure if you do get asked or if it the onus is on you to file) but I need to work out from what date I need to include my foreign income.

Thanks

Hi

From your timeline, you have been living in Canada since August 2017, with a holiday in the UK from April to May 2018. You were a resident for all of 2018.