Urgent advise needed about tax income

[springseason]

Hi,

I became PR in March 2007, I stayed in Canada around 2 years with no income. And I went back to my home country. And then I come back to Canada to renew my Pr card 3 months ago. During my stay here I did not fill my tax file for 2 years. My questions are:

1. Can I fill the forms now?
2. If I fill the forms I can state zero income, is it possible?
3. Do I have to present my income last 3 years, I earn in my home country?

I would be appreciate for any info/suggestion

Best

 

[Empirical-Scientist]

1. Yes, you can fill your form any time. You should. It's the law.
2. If you had zero income, you should state zero income. Don't try to fool the CRA.
3. Your income as a PR is taxable. You have residential ties with Canada for tax purposes. Read the official page entirely at: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nwcmr-eng.html. I quote from the page the following:

Even if you have no income to report or tax to pay, you may be eligible for certain payments or credits. In order to receive the following payments or credits, you must file an income tax return.

 

[seton]

3. Your income as a PR is taxable. You have residential ties with Canada for tax purposes. Read the official page entirely at: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nwcmr-eng.html. I quote from the page the following:

Not necessarily. Being a Canadian PR doesn't necessarily make your a Canadian resident for tax purposes. However for the years you were living in Canada (and considered a resident of Canada), and were earning income in your home country, that income should have been on your Canadian tax return. You can retroactively file returns at any time, but you may not receive any refunds/credits prior to 3 years without filing for leniency from the CRA. However if you owed money, you will still have to pay it (with interest/penalties, but you can file for leniency for those too).

The rules of whether you are a resident or not are discussed here: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

If you're in doubt whether you're a resident or not, you can ask the CRA to make a determination for you for free (without filing a return). You'll need to file an NR74 form: http://www.cra-arc.gc.ca/E/pbg/tf/nr74/nr74-04e.pdf

Just remember, and this going for your home country, your income is usually your worldwide income in the country you're filing in. As such, if you're back home but had some Canadian investment, that taxable income would be on your return wherever you file. There are tax treaties between Canada and several countries to prevent you being double-taxed (as there's withholding tax on your income in Canada), so you can get tax credits where you file, assuming a treaty is in place.