Returning Canadian - Just some clarification about world income...

[Eabie]

So, my husband and I moved back to Canada last June and we've both started working now. However, I didn't file in 2011 or 2012. In 2011, I moved to the UK on a spousal visa to live with my British husband and I made no Canadian income at all that year. As I figured I'd be living permanently in the UK and would be paying taxes to the UK government, my understanding was that under the UK-Canada tax treaty, I wouldn't need to file as I didn't owe any tax. I did inform the CRA of my move by letter, however. Same thing in 2012 - I was living and working in the UK and paying taxes there.

Now that I'm back, do I just report my taxable income from here in Canada for the past year? I was still living and working in the UK up until May. Any help or advice would be appreciated, especially from others in a similar situation.

 

[steaky]

Yes, just report your taxable income for the past year (starting from June).

 

[Amadan123]

Hello Eabie,

Yes, you will be a part-year resident, where you will pay taxes in Canada on income earned only from June on-wards.

Incidentally, are you positive the CRA deemed you a non-resident for the period you were away? Did you complete a departure tax return the year that you left (even though you did not earn income)? You should also complete and submit a NR73 form, just to make it clear that you departed Canada and intended to become a non-resident for tax purposes.

Madan Chartered Accountant team
madanca.com