Every year, thousands of immigrants make Canada their new home. But 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 (hrblock.ca).
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.”
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.
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. For more information, call 1-800-472-5625.
– Patrick Henry
Courtesy: News Canada
Ontario seeks input from newcomers, small businesses
Ontario is looking to make it easier for more companies to do business with the province. This month, the province will launch consultations with business associations and trade organizations to learn what processes work well and which ones need to be improved. Ontario will invite chamber of commerce representatives from across the province, including representatives from dozens of multi-ethnic chambers, to provide written feedback or attend a roundtable discussion at Queen’s Park. “We’re reaching out to a broader range of businesses that haven’t yet had the opportunity to work with the provincial government,” said Harinder Takhar, Minister of Government Services.