Tax updates for ex-pats in Canada in October 2023
New reporting requirements for trusts
As of December 31, 2023, trusts with residency in Canada will be required to report certain information about their assets, liabilities, income, and expenses to the Canada Revenue Agency (CRA). This information will be used to ensure that trusts are complying with Canadian tax laws.
Crypto-asset exchanges: your records, obligations and responsibilities
The CRA has released new guidance for crypto-asset exchanges operating in Canada on their records, obligations, and responsibilities under Canadian tax law. Crypto-asset exchanges are required to keep detailed records of their transactions and to report certain information to the CRA about their clients.
New Canada Pension Plan (CPP) and Québec Pension Plan (QPP) boxes on the T4 slip
Employers will now be required to include new boxes on the T4 slip for employees’ CPP and QPP contributions. These boxes will help employees track their contributions and determine their eligibility for CPP and QPP benefits.
Taxpayer relief for Canadians affected by wildfires in British Columbia and the Northwest Territories
The CRA has announced that Canadians affected by the wildfires in British Columbia and the Northwest Territories will be eligible for a number of tax relief measures. These measures include:
- Extending the deadline to file income tax returns and make payments
- Waiving penalties and interest on outstanding balances
- Providing financial assistance to help cover the costs of rebuilding homes and businesses
Businesses: Beginning January 1, 2024, if you file six or more information returns you must file them electronically to avoid penalties.
This change is being implemented to streamline the filing process and reduce the administrative burden on businesses. Businesses that fail to file their information returns electronically may be subject to penalties.
Warning: Watch out for tax schemes involving multilevel marketing businesses!
The CRA is warning Canadians about tax schemes that are being promoted by multilevel marketing (MLM) businesses. These schemes typically involve selling products or services at inflated prices and then promising participants that they can earn large sums of money by recruiting new members. The CRA is concerned that these schemes may be misleading and that participants may end up losing money.
Tax implications of moving out of Canada
If you are an ex-pat who is moving out of Canada, you may have certain tax obligations. For example, you may need to file a Canadian tax return for the year in which you leave Canada. You may also need to pay capital gains tax on any taxable Canadian property that you sell.
Tax implications of receiving foreign income
If you are an ex-pat who is receiving foreign income, you may be subject to Canadian tax on that income. You may also be eligible to claim certain foreign tax credits.
Seeking professional tax advice
If you are an ex-pat with questions about your Canadian tax obligations, it is advisable to seek professional tax advice from a qualified tax advisor. A tax advisor can help you understand your tax obligations and ensure that you are compliant with Canadian tax laws.
