Taxable Income Cra
Question: How is a returning Canadian taxed for the first year on resuming residence in Canada?
After being a Canadian tax-resident for 5 years, I worked in Asia, including last 10 years in Hongkong. Paid local taxes, and was non-resident of Canada for tax throughout – no issue with CRA on that. This year I’m going back to Canada to resume residence there for good.
What will be my Taxable Income in the year of landing?
a) worldwide income earned from the date I land in Canada onwards,
b)worldwide income for the whole year, even what I earned before landing in Canada, or
c) would the 183 day rule play any role in this – if I return earlier so I spend more than 183 days in Canada then it’s (a), and if I return later in the year so I spend less than 183 days then it’s (b). Is that how it would work for a returning Canadian?
I thought it would be (a), just like for a new immigrant. What’s the right answer?
Also, will the tax RATE be based simply on taxable income (even if it’s earned only for part of the year, so lower tax rate) or whole year’s income (higher tax rate)?Answer: your the thinking on (a) is correct, and the tax rate is based on the taxable income for part of the year after the landing.
(b) isnt applicable becasue u were a part yr resident of cda.
(c) isnt applicable that only applies to sojourner who comes and leaves cda during the year for 183 days or more.
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Question: Should I get my taxes done at H&R?
OK, so i know absolutely nothing about filing taxes. Theres a native friendship place that does it for free but everyone I know goes to H&R. Is there a reason for this? Should I go there? Do they do a better job or something? I have one child and made very little income for the year I’m filing. I called revenue canada and they weren’t very much help. Any ideas?
Answer: “Everyone” goes to H&R Blockheads for the same reason they probably eat at McDonalds. It’s bad but they don’t care.
H&R is a large corporation. They don’t care about their employees and therefore the employees, for the most part, are ignorant and sloppy.
They do a terrible job on anything that is not simple (a single T4) enough that you could do it yourseld on www.quicken.ca.
Go to the native friendship place if you don’t want to do it yourself…
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Question: RE: NR7-R Recovery of withholding for a foreign investor?
I am having trouble getting my 15% withholding back from a brokerage firm in a tax free Roth IRA account in the states which I hold multiple dividend paying stocks in Canada. (These stocks are not trusts either) Do I file the form with the nominee(brokerage) or the government to get my money back? I don’t get a straight answer from either party when I pose the question to them.
Answer: The form you note actually says on the instruction page where to send it:
International Tax Services Office, Non Resident Withholding Division, 2204 Walkely Road , Ottawa, ON K1A 1A8
For questions: 1-800-267-3395
http://www.cra-arc.gc.ca/E/pbg/tf/nr7-r/nr7-r-06e.pdf
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