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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7543
Experience:  15years with H & R Block. Divisional leader, Instructor
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jan 2011 i got canadian PR

Resolved Question:

jan 2011 i got canadian PR i stayed in canada for 10 dAYS TO GET THE pr CARD THEN LEFT , aUG 2013 I RETURNED BACK AND GOT MY CHIL IN SCHOOL i have worldwide income of 6000 $ per Annum so what i have to do now as I am still sithout a job in Canada
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Robin D. :

Hello and thank you for using Just Answer,
You have become a resident for Canadian tax purposes when you have applied for and received your Permanent Resident status. You have to report your world income (income from all sources, both inside and outside Canada) earned after becoming a resident of Canada for income tax purposes on your Canadian tax return.

Robin D. :

For the part of the year that you were a non resident (pre card date) you are to only report the income that is Canadian sourced.

Robin D. :

Even if you have no income to report or tax to pay, you may want to file a tax return to apply for the goods and services tax/harmonized sales tax (GST/HST) credit, or if you or your spouse wants to begin or continue receiving the Canada child tax benefit and payments from certain related provincial or territorial programs.

Customer :

but for almost 18 months i did not have any tie with canada me my family where outside so is this period considered as resident tax wise , do i have to file tax for 2011 and 2012

Customer :

hi

Robin D. :

When you received your card you became resident the 10 days you were in Canada for 2011 established you for the year. As you were outside Canada till Aug of 2013 the time you were not in Canada you would have been nonresident for tax purposes until you returned in 2013. From Aug 2013 to Dec you were in Canada and resident there so the income earned worldwide from Aug on would be income taxable to Canada

Robin D. :

Sorry I had to work through your situation, took me a sec to figure it out straight

Robin D. :

Are you in the US when outside Canada

Customer :

no i am egyptian

Robin D. :

Let me get that tax treaty, one sec

Robin D. :

You were nonresident while you were outside Canada and so no tax would be owed and no filing unless you had received Canada sourced income during that time.

Customer :

ok now what i have to do when i have to file a tax file is it now or in April and how i could receive my child tax benefit

Robin D. :

You would certainly want to file because even if you owed no tax you would apply for the child benefit.

Customer :

ok so kindly advice me how to file and what world income to declare

Customer :

i am in Alberta

Customer :

hi

Robin D. :

All income you received from any source after you returned. You would need to prorate any amount from the date in Aug to the end of the year.
The Canada Revenue Agency (CRA) administers the Alberta family employment tax credit. here is no need to apply separately to qualify under these programs. The CRA will use the information from your Canada child benefits application to determine your eligibility for these programs. If you are eligible, the amount of any payments will be calculated automatically based on information from the income tax returns you and your spouse or common-law partner file.

Robin D. :

Use the above to apply

Customer :

yjis mean i have to estimate how much i will get till dec and file a tax file with CRA and then they will decide the payment , do you know a good office to help me in Alberta and how much they will charge

Robin D. :

That is correct. I am afraid Just Answer does not allow me to endorse any specific company.

Robin D. :

I can check if the CRA has a list

Robin D. :

CRA offers advice on help for filing through the Volunteer program
http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/menu-eng.html

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Customer :

hi

Expert:  Robin D. replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Expert:  Robin D. replied 1 year ago.
Hello
Customer: replied 1 year ago.


hi my line get disconected thanks for reply what proof i have to give for my worldwide income and could i make a trust

Expert:  Robin D. replied 1 year ago.
The proof would be any document that you have which shows the income payment. You would not need to send it with your return. If the CRA had a question they would contact and request specifics.
The trust question is not relative to your original subject and per the site rules you would be required to post that as a separate question (I do not want to get into trouble).
Customer: replied 1 year ago.


i am on private business so usually no proof for so only i have one rented house with income also i am paying back my expired father loans which are obligatory by a court verdict

Expert:  Robin D. replied 1 year ago.
The loans would not be relevant. The records you have of the rental should be fine. Your business income would be invoices or other records that show payments and expense.
Customer: replied 1 year ago.

if the only benefit from tax is get child benefit i will not do till i got canadian income actually i am afraid to give wrong income more than what i am getting also

Customer: replied 1 year ago.

hi

Expert:  Robin D. replied 1 year ago.
You will need to check to see if the amount of income you received is going to make you liable for tax. The rental and the business is require dot be reported. I suggest you use the link I supplied for the Volunteer service and get them to assist in making sure your income is not at a level that is going to be taxable.
They can assist in going over your information and calculating correctly the true income.

http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/menu-eng.html

Above is the url again.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7543
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

i need to go for a new discussion regarding how to make an offshore trust i heard it could give me a tax holiday for 5 years

Expert:  Robin D. replied 1 year ago.
Yes you will need tot start a new question after you rate this one.
My goal is to give you excellent service. If you are satisfied, please rate me.
Customer: replied 1 year ago.


i gave excellent if you know my question for ofshore trust kindly send me link to start new question

Expert:  Robin D. replied 1 year ago.
If you use the link below, you can ask a question directly to me:
http://www.pearl.com/request/TaxRobin


I saw that rating just now, thank you, XXXXX XXXXX assist!
Customer: replied 1 year ago.


i am facing a problem in access in this site it is mentioning currency is not accepted


 

Expert:  Robin D. replied 1 year ago.
I will advise customer service for you. Hold on for them to contact you.
Customer: replied 1 year ago.

hi my line get disconected thanks for reply what proof i have to give for my worldwide income and could i make a trust

Expert:  Robin D. replied 1 year ago.
What you are asking about is an Immigration Trust. You can open one before you immigrate or within 60 months after. The date you would need to be concerned with would be the date you received the PR card.
Customer: replied 1 year ago.


how to open immigration trust

Expert:  Robin D. replied 1 year ago.

The following is a brief summary of the steps and you would need to work with a competent adviser to make sure all is correctly handled : Residence of the international trust must be outside of Canada, therefore the trust must be settled in an offshore jurisdiction by way of a gift from non- residents of Canada. Although an immigration trust enjoys a period of tax-free status in Canada, the tax regime in the trust’s country of residence must be considered. The majority of trustees must be non-resident and a protector would be appointed. The trust would be irrevocable and would be discretionary. All investment decisions in respect of the trust and meetings of the trustees would occur outside of Canada in the tax haven jurisdiction or elsewhere. Income earned by the trust must be foreign sourced income. If the income is generated from Canadian sources, it will be subject to Canadian tax. The trust indenture would provide that the annual income of the trust be accumulated and that the trustees would have the discretionary power to make capital distributions to the beneficiaries.

 

You can try this:

http://canadaimmigrationtrusts.blogspot.com/

 

 

I am guessing that since you are back to this thread for the new question Customer Service could not correct your problem. I guess it will be alright to rate a second time.

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7543
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and other Tax Specialists are ready to help you
Customer: replied 1 year ago.


I had give a second rating and paid the fees but need more clarification , i am new so i need to under stand what is trust is it income from business or from rentals and as I have a tax holiday could i not report my tax now and report it when the trust is ready say within 20 month from now also this trust will allow me to transfer money beyound 100,000 CAD also do my wife whichis a PR enter in this

Expert:  Robin D. replied 1 year ago.

You can transfer property that is income producing property to the trust. Most benefits from doing this will be if the property placed in the trust is $1mil or more. This is because the cost to set up the trust and the fees to pay are not cheap. You cannot receive payments from the trust income because the payments to you would be taxable in Canada. This type of trust protects the income for the prescribed time but not if you receive a distribution. That would be taxable to you. You would have to take capital from the trust. Income earned by the trust will be taxed in a beneficiary’s (your)hands if it is allocated to them as income. I have to do some research to see if you and your spouse can both be beneficiaries of the same trust. Yes you and your spouse can both be beneficiaries.

Customer: replied 1 year ago.

could you kindly advice how much is the cost of trust...


I understand that trust is value of property & not income (yes/No)


again i will return to world wide income if i declare zero would i be subject to proof presenting and if I declare 10000 CAD would i be required to give a proof it is income coming from rent collection and some times I face difficuilty in collection so no fixed value


 


My last question do you have a form pf trust still i could not grasp how it looks

Expert:  Robin D. replied 1 year ago.
I really do not know what would be charged to set up the trust. You would have to ask the company when you inquired. I do know that Price Waterhouse can assist you in setting it up. They are international and have experience in this.
The trust would hold the property and earn income from it but as the trust would be a separate entity and not in Canada the trust would not pay tax in Canada. If you received any of the trust's income then you would pay tax so placing property in the trust would protect the property and the income as long as you did not receive any of that income.
If you placed money in the trust then that would be capital and you could take that out without being taxed in Canada.

Yes, I do believe Canada would need to know where your living expenses were coming from if you had zero income. The income from your rental would need to be shown on the Canada return so the expenses are account for and if the end result was zero that is different then just saying no income. Many things in business and rental are what is called paper losses or subtractions. They are for depreciation or Capital Loss Allowances. No money is really lost except on paper for wear and tear of property.

I do not have any form for a trust.
Customer: replied 1 year ago.

this mix me up , i have less than 100000 money in posession before i came to canada which i will be using to spend till i settle down , suppose that this year pass and i did not file a tax will be any problem for me i dont know if i just say i earn 100000 per year fromworldwide and then i get 12000 I will be in a problem i prefer to sell my property and transfer the 100,000 which i dont think will require a trust but this will take time so i might not file a tax file this year kindly advice on this

Expert:  Robin D. replied 1 year ago.
I do not think the trust would benefit you either without many more assets to protect. If you were working in Canada but wanted to protect the other assets for a while then maybe the trust would assist.
My problem with saying yes or no to you is your wording of the question "if i just say i earn 100000 per year from worldwide" if that is what you earned then you would need to file and report that if you did not have that much in income then you are to just report the income you received.
If you decide not to file and you were not required to then that is fine it would mean you would not qualify to the child benefits till the next year.
Customer: replied 1 year ago.


let me put it more clear i have a bank account money earned before getting PR status around 100000 and yearly income 6000 so how to declare

Expert:  Robin D. replied 1 year ago.
You do not declare the amount prior to the PR. You only are taxed on the amount you received after. So if that yearly amount was paid to you before the Aug date you returned the you do not declare it either and you do not file.
Customer: replied 1 year ago.

hi i sent you my querry , i have bank money earned before i came to canada 100, 000 and yearly income of 6000

Customer: replied 1 year ago.


ok my last question how much money i could transfer to canada for example to buy a house could i transfer 100000 or i could transfer more i mean what is the limit

Customer: replied 1 year ago.


hi i asked a question yesterday but no answer came , how much money i could transfer to canada without tax is it 100,0000 or more

Expert:  Robin D. replied 1 year ago.
Sorry, you posted after I was offline.
There is not the money if it was earned prior to residency in Canada. If you have more than $100,000 in an account outside Canada you are to report the account but you would not pay tax on it.
So transferring the money is not taxed but remember the reporting rule.
Customer: replied 1 year ago.


during my first landing i reported money in possesion 100000 US is this enough or could you give more details on reporting rule

Expert:  Robin D. replied 1 year ago.
As you reported then that was fine but each year that you have a foreign account that holds more than the limit must be reported. You would have had to do this too if you had used the Immigration Trust would talked about.
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/menu-eng.html
Customer: replied 1 year ago.


could i report now more money other than i reported earlier during landing as for 18 months I was not a tax resident also could i do this reporting without the expensive trust , actually i dont see a value of making a trust if transferring money is untaxable

Expert:  Robin D. replied 1 year ago.
Yes, each year you need to report any accounts outside Canada. You would pay tax on interest and earnings on the account but not the corpus of the account(the initial you had in it before you were resident or have already shown as income in Canada).
I do not see a benefit for you either in a trust at this time.
Customer: replied 1 year ago.

still i dont get what is the value of limit

Expert:  Robin D. replied 1 year ago.
If you mean the transfer of the money to you, then you would not be taxed on the amount if you earned id prior to being resident. There is no limit on how much you can transfer. The Canadian bank would need to report if within their guidelines and rules but that is a banking issue and not tax.
Customer: replied 1 year ago.

if i did not file a tax file at least for one year to finalize my property & stop the world wide income i mean i will sell the property that generates income and transfer money to canada , if this took a year and i did not file a tax file what will be the penalty

Expert:  Robin D. replied 1 year ago.
It would depend on the actual dollar amount. The penalty is 5% of your balance owing, plus1% of your balance owing for each full month that your return is late.
Customer: replied 1 year ago.


ok and what is the last date to report for 2013 income

Expert:  Robin D. replied 1 year ago.
Your return is due April 30 in the year following the tax year. So for the 2012 return the due date would be April 30, 2013. The 2013 tax year would be due April 30 2014.

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