Are you a Newcomer to Canada? You must know your Tax Obligations
It is possible that you have left another country to settle in Canada. If so then you must be aware of your tax obligations. We at The Accounting and Tax have been providing professional tax consultation to individuals and clients since 2001. Through this blog we will help you to find out about your tax obligations as a newcomer to Canada.
Are you a resident of Canada?
In terms of income tax, you become a resident of Canada when you establish significant residential ties with Canada. You must know that you would generally establish these ties on the date you arrive in Canada.
As a newcomer to Canada you could establish residential ties for any of the following 3 categories:
- If you are a protected person within the meaning of Immigration and Refugee Protection Act
- In case you have applied for or received Permanent resident status from Immigration, Refugees and Citizenship Canada
- You could also have received an “Approval in Principle” from the Immigration, Refugees and Citizenship Canada to stay in Canada.
As a resident do you have to file your income tax returns?
Filing Income-Tax Returns is a must to receive benefits. As a newcomer to Canada, you would need a Social Insurance Number (SIN). This will help you to claim your benefits and credits for which you would be eligible as a resident Canadian. In order to continue receiving the social benefits, you are entitled to you need to keep filing your income tax on time every year. This is even if you have no income for the concerned year. You must also keep your personal information up to date all the time. In case the CRA asks for supportive documents you need to keep them ready as well.
You must also file a tax return in case you have to pay tax or even if you want to claim a refund.
Which Package should you use?
As a newcomer to Canada, you should use the “General Income Tax and Benefit Package” for the tax year you came to Canada as well as the subsequent tax years if you continue to be a resident of Canada. You must also ensure to file your Income tax returns with in the respective due dates. Failing this it could attract serious penalties. So not only must you ensure to file your tax returns but also do it within the stipulated time frame for the same.
Basic steps for filing your Income Tax Return
You have to provide the basic identification number and other information like the date of entry, the date you became a resident of Canada etc. Thereafter you have to report your income after you became a resident of Canada. The knowledge of items which can be deducted is important as well.
In conclusion, we can say that even as a new resident to Canada you need to file your income tax. For any assistance or tax consultation get in touch with us.
