(NC)—Every year, thousands of immigrants make Canada
their new home. However living in a different country can be a major
adjustment, especially if you are unfamiliar with having to file income
tax forms.
“Even if you are new to Canada, the Canada Revenue
Agency (CRA) expects you to comply with your tax obligations,” says Cleo
Hamel, senior tax analyst with H&R Block.“It is important to find
out your residency status under the CRA rules and what this means to
your tax return.”
People entering Canada can be classified as
non-residents, deemed residents or part-year residents, depending on how
long they stay and if they establish residential ties.
People who immigrate to Canada on a permanent basis
are usually considered part-year residents for tax purposes. Part-year
residents are taxed on their world income from the date of entry, so all
income earned in a tax year must be reported.
“Every new Canadian needs to apply for a social
insurance number (SIN) as soon as possible,” explains Hamel. “You will
need a SIN to file a tax return and qualify for tax credits.”
Part-year residents may be entitled to the GST credit
after their arrival. Parents should also complete a Child Tax Benefit
Form RC66 from the CRA as soon as they arrive.
“Your tax obligations on investments and properties
will be calculated based on the fair market value (FMV) on the date you
entered Canada,” says Hamel. “The FMV will determine any capital gains
or losses after you arrive, meaning you don't pay more tax than you need
to.”
If you are new to Canada, it is important to make
sure you claim the credits to which you are entitled while ensuring you
comply with the existing tax laws and treaties.www.newscanada.com
No comments:
Post a Comment