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.

Shifting income? You still might pay the tax

Confusing section of tax code can cause real problems in certain situations

CANADIAN TAX ADVANTAGE