Subsequent visits after first landing

[gd]

Hi experts,

I would like to know the answers to the following queries re. subsequent vists after first landing. i.e after completing the first landing in 2009, I returned to my country. Next month i am hoping to visit Canada again.

1) During subsequent visits, do the airport officials check your PR card on entry?

2) Is there a certain limit to the money you could bring in during subsequent visits? Do you have to declare at the airport, how much money you are carrying everytime you enter Canada?

3) Do I have to submit tax returns every year even if I am not residing and not earning any income within Canada?

 

[Suin]

Hi experts,

I would like to know the answers to the following queries re. subsequent vists after first landing. i.e after completing the first landing in 2009, I returned to my country. Next month i am hoping to visit Canada again.

1) During subsequent visits, do the airport officials check your PR card on entry?

2) Is there a certain limit to the money you could bring in during subsequent visits? Do you have to declare at the airport, how much money you are carrying everytime you enter Canada?

3) Do I have to submit tax returns every year even if I am not residing and not earning any income within Canada?

hello,
1. yes, they always check your PR on the entry
2. you need to declare the sum more than 10000 CAD
3. yes, you must submit tax returns every year after landing date even if you do not live in Canada

 

[Alabaman]

hello,
3. yes, you must submit tax returns every year after landing date even if you do not live in Canada

Correction: You only submit tax returns if you have ties to Canada e.g. Bank account, an apartment, family, a vehicle etc. If not, then you are a resident (PR) but not a resident for tax purposes.

 

[gd]

Hi Guys,

You guys are great! Thank you for clarifying.

I have opened a Bank Account during my first visit in August 2009. This means I have ties to Canada.

Regarding filing a tax return - Could you guys tell me how to do that.
i.e.
1) Do I have to be present in canada to file my tax return or could I do that from abroad?

2) In the coming September I will be visiting Canada again to enrol my son to a Canadian University. Do you think I could do that during that time?

3) I read somewhere that I should file it on 31st December of each year or something to that effect. Does that mean I need to submit one for 31st December 2009 bearing in mind my first landing and opening the bank account was in August 2009)?

4) When I file the tax return, is it a must that I need to get services of a Canadian tax consultant? How do I find one?


5) What will happen if I do not submit tax returns until I permanently moved in to Canada (say) in another 2 years time?

Thank you in advance for your responses

 

[toby]

Hi Guys,


I have opened a Bank Account during my first visit in August 2009. This means I have ties to Canada.

That is only a secondary tie, not in itself enough to declare you a full-time taxpayer. Having a spouse in Canada, or access to a residence in Canada throughout the year, or being in Canada more than 182 days makes you a full-fledged taxpayer. Then you must file a tax return.

Or if you are not a resident for taxpaying purposes, but earned income sourced in Canada, then you file a return to pay tax on that in-Canada income.

Regarding filing a tax return - Could you guys tell me how to do that.
i.e.
1) Do I have to be present in canada to file my tax return or could I do that from abroad?

From abroad. Go to the CRA website and download the tax forms, complete them, and mail from abroad. Of course, it's far easier to buy a tax program (e.g. Quicktax) and prepare your return that way. Maybe do some research to see if you can download the tax program over the internet.



2) In the coming September I will be visiting Canada again to enrol my son to a Canadian University. Do you think I could do that during that time?

If you NEED to file a tax return, the personal tax year runs from 31 December to 31 December, and you have until the following April 30 to file the return. If you owe tax, it is important to get the tax return to CRA before 30 April. If no tax to pay (you get the first $10K or so without tax), filing late is OK as long as you don't make a habit of it.

3) I read somewhere that I should file it on 31st December of each year or something to that effect. Does that mean I need to submit one for 31st December 2009 bearing in mind my first landing and opening the bank account was in August 2009)?

IF you had in-Canada income, yes, file the 2009 tax return by 30 April 2010.

4) When I file the tax return, is it a must that I need to get services of a Canadian tax consultant? How do I find one?

Nah. Quicktax will tell you all you need to know -- unless you have a very complex situation.

5) What will happen if I do not submit tax returns until I permanently moved in to Canada (say) in another 2 years time?

If you owe tax, interest will accumulate at about 7% per annum, and you attract the unwelcome attention of CRA. If not, eventually CRA will notify you to submit tax returns, but not likely before a few years in the future.

Thank you in advance for your responses

 

[gd]

Thanks Toby. You really are a hero!

From your answer, I fall into the category of a non tax payer at this moment because ;
a) I have no income from Canada.(The account I opened is a nomnal one. I don't earn an interest from it)
b) I have no spouse or a house currently.
c) I have not been in Canada for a period of 182 days.

Now my question is :

Whenever I start to reside in Canada(say after 2 years) and file my first tax return, will the authorities question the income I earned outside Canada between the first landing and the date I started residing in Canada? I read somewhere that the income a PR holder earns outside Canada is also taxable.

could you pl confirm this?

Thanks in advance

gd

 

[steaky]

Thanks Toby. You really are a hero!

From your answer, I fall into the category of a non tax payer at this moment because ;
a) I have no income from Canada.(The account I opened is a nomnal one. I don't earn an interest from it)
b) I have no spouse or a house currently.
c) I have not been in Canada for a period of 182 days.

Now my question is :

Whenever I start to reside in Canada(say after 2 years) and file my first tax return, will the authorities question the income I earned outside Canada between the first landing and the date I started residing in Canada? I read somewhere that the income a PR holder earns outside Canada is also taxable.

could you pl confirm this?

Thanks in advance

gd

Since you are a non tax resident, your income earn outside Canada is not taxable

 

[toby]

Now my question is :

Whenever I start to reside in Canada(say after 2 years) and file my first tax return, will the authorities question the income I earned outside Canada between the first landing and the date I started residing in Canada? I read somewhere that the income a PR holder earns outside Canada is also taxable.

could you pl confirm this?

Thanks in advance

gd

Steaky is correct; while you are out of Canada, and no major ties to Canada, income earned outside Canada is not taxable IN Canada. I've done a lot of research into this point, which you can find under Finance and Taxation.

Good luck.

 

[gd]

Thank you Steaky and Toby.

You guys are doing a great service.

gd

 

[gd]

Hi Toby, Steaky etc.,

I appeciate for your previous advises on my filing a tax return as 'not required' (See previous posts below).
however, looking ahead, my future plans are as below.

1) My son will enter a Canadian University in September 2010.(and would want to apply to OSAP loans etc.)
2) My family will settle down in Canada in 2011 and we will require to apply for a mortgage from a bank for a house by that time.

In tha above scenario, a friend told me that it is worth to file a 'Nil' income tax return or a minimum payment tax return.

What do you guys think about this suggestion? Will that be beneficial?

If you say "it is worth to file a return in such a scenario" then am I late for submission of return for 2009 (deadline according to Canada Revenue is 30th april)

Appreciate for your feedback

regards

gd

 

[steaky]

Hi Toby, Steaky etc.,

I appeciate for your previous advises on my filing a tax return as 'not required' (See previous posts below).
however, looking ahead, my future plans are as below.

1) My son will enter a Canadian University in September 2010.(and would want to apply to OSAP loans etc.)
2) My family will settle down in Canada in 2011 and we will require to apply for a mortgage from a bank for a house by that time.

In tha above scenario, a friend told me that it is worth to file a 'Nil' income tax return or a minimum payment tax return.

What do you guys think about this suggestion? Will that be beneficial?

If you say "it is worth to file a return in such a scenario" then am I late for submission of return for 2009 (deadline according to Canada Revenue is 30th april)

Appreciate for your feedback

regards

gd

Hi gd,

Since you son (assuming he is your dependant) would be attending university this fall, you being a "tax resident" may have to submit a tax return no later than 30 April 2011.

You don't need to submit any tax return for 2009.

 

[rabmon04]

Hi Toby & Steaky,

Thanks for the info shared as I'm also bothered with taxation matter similar to gd. I've another concern, if I move to stay in canada on permanent basis but still keep a property and rent it out in the original country, do I need to pay property tax and income tax (ie earned rental) for this property (as I still need to pay propert tax and earn income to the tax dept in original country)? What if I don't earn rental and leave the property to my parents to stay ?

Thanks in advance.

 

[steaky]

Hi Toby & Steaky,

Thanks for the info shared as I'm also bothered with taxation matter similar to gd. I've another concern, if I move to stay in canada on permanent basis but still keep a property and rent it out in the original country, do I need to pay property tax and income tax (ie earned rental) for this property (as I still need to pay propert tax and earn income to the tax dept in original country)? What if I don't earn rental and leave the property to my parents to stay ?

Thanks in advance.

My understanding is that every tax resident need to file tax return reporting their income-generating real property in Canada and overseas. If the property does not generate income (in this case your parents are staying), you do not report this income, nor could you claim rental loss & expenses. Hope this helps.

 

[toby]

Hi Toby & Steaky,

do I need to pay property tax and income tax (ie earned rental) for this property (as I still need to pay propert tax and earn income to the tax dept in original country)? What if I don't earn rental and leave the property to my parents to stay ?

If there is no tax treaty between Canada and your mother country, you calculate the net income from renting the property (i.e. gross rent revenue less expenses like property taxes, repairs, depreciation, AND any tax on the rental income paid to the mother country). You declare this in your Canadian tax return -- IF you are residing in Canada.

If there IS a tax treaty, then you do not deduct the taxes paid on rental income to calculate net income, Instead I THINK you calculate the Canadian tax owed, then deduct taxes paid to the mother country. But I am not sure how to do this, since the situation has not arisen for me yet. But I'd bet the help screens in QUicktax will have this covered.

 

[rabmon04]

Hi Toby & Steaky,

again thanks for your help.

Regards