# Income tax 2009



## kika (Jan 14, 2010)

Could somebody help me please? I have a dual citizenship - canadian and one european country. I lived the all year 2009 in Europe and did not enter Canada and had no income in Canada. Do I have to fill the tax form and send it to revenue agency in Ontario? I will fill the tax return in the european country because I had an income there.


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## iherald (Apr 18, 2009)

kika said:


> Could somebody help me please? I have a dual citizenship - canadian and one european country. I lived the all year 2009 in Europe and did not enter Canada and had no income in Canada. Do I have to fill the tax form and send it to revenue agency in Ontario? I will fill the tax return in the european country because I had an income there.


I believe that you need to show the Canadian government that you paid taxes in your other country. Assuming that it's a treaty country, my understanding is that you input your income on your Canadian taxes but then fill out a form showing you paid all your taxes owed. 

That's what I remember from tax law that I took about 7 years ago, and I'm not a tax lawyer so I don't remember too much.


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## leslie (May 25, 2009)

(Copy of post on other website where you gave more detailed information.)

The determination does not depend on citizenship, although that is considered in the determination. Nor does residency in another country automatically preclude you from having to file here. Nor does where the income originates have any bearing - Canada taxes on world-wide income (with a recovery of tax already paid elsewhere). Nor does being unemployed matter - income from other sources is taxed in Canada as well.

The determination is a subjective one. The documents following will give you a list of considerations. I would start by determining when you last lived in Canada. Then determine when you left (according to tax criteria, not physically). There are tax implications to 'leaving'. If you 'left' at some point and cut off all ties to Canada (see the list) and have never 'returned' then you do not have to file Cdn returns.

http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.html
http://www.fin.gc.ca/treaties-conventions/in_force--eng.asp


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## humble_pie (Jun 7, 2009)

the legal concept is domicile, which is not same thing as residence.

it is possible to llive most of one's life outside the country of one's domicile. Part of the determination is intention. What the canadian tax authorities are looking for in determining domicile are signs that a taxpayer who has departed canada has left behind goods, associations & entanglements that could or would cause him to return.

french authorities have a somewhat similar approach. They look for what they term the centre of vital interests, and by these they mean, for the most part, one's financial interests.

the US is the only major country that routinely taxes its citizens abroad. Canada in following common law practice tends to follow great britain, who learned her lesson well during the boston tea party & the american revolution - don't tax your citizens when they leave home lock stock & barrel.


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## Robillard (Apr 11, 2009)

I think these webpages have explanations: 
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

Just because you have citizenship doesn't necessarily mean you are resident in Canada. If you did not earn any income from sources in Canada, I think the Canadian government technically has nothing to tax.


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## kika (Jan 14, 2010)

Thank you all very much for your replies. I realised I collect GST/HST related to tax return 2008, is that an income? Does that change my situation? I have no ties to Canada except of that GST/HST credit that I get. I have no property, no bank accounts in Canada, driver's license is expired.
The revenue agency sent me to my address in Slovakia T1 general Ontario forms 2009, does that mean they expect me to file tax return or they send it to everybody?
How do I technically proceed in this matter? Please correct me if I am wrong. To obtain the determination of residence status I have to complete for NR73 and fax it to the International tax services office and wait if they approve it or not. ?


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## Robillard (Apr 11, 2009)

I don't believe GST/HST tax credits are considered to be income. 

Based on what you have mentioned, I do not think that you need to file a Canadian tax return for 2009. If your potential tax exposure is large though, you may want to ask someone specialised in Canadian personal tax. (I generally deal with a specialised area of corporate tax.)


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## kika (Jan 14, 2010)

Robillard said:


> I don't believe GST/HST tax credits are considered to be income.
> 
> Based on what you have mentioned, I do not think that you need to file a Canadian tax return for 2009. If your potential tax exposure is large though, you may want to ask someone specialised in Canadian personal tax. (I generally deal with a specialised area of corporate tax.)




Thanks a lot for your help and time. I might call directly canadian revenue agency what to do. I am just afraid they always say you need to file tax return if I ask them.


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## Berubeland (Sep 6, 2009)

If you are not living here and don't make income here and don't spend money here I'm not sure you are eligible for GST/HST credit. 

Call the CRA to find out. 

The Canadian government is weird. Mu husband is not legal here but he gets our GST/HST credit. And they want him to file an income tax return every year and they gave him a temporary tax number to do so. But that was last year... the year before was different


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## brad (May 22, 2009)

humble_pie said:


> the US is the only major country that routinely taxes its citizens abroad.


The U.S. (like Canada) has tax treaties with many countries to avoid double taxation. I'm a dual U.S.-Canadian citizen and I file tax returns in both countries. All my income is in Canadian dollars and I haven't had to pay any US taxes since I moved back to Canada eight years ago. But I do have to submit a tax return to the US every year.


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## ghostryder (Apr 5, 2009)

Berubeland said:


> The Canadian government is weird. Mu husband is not legal here but he gets our GST/HST credit. And they want him to file an income tax return every year and they gave him a temporary tax number to do so. But that was last year... the year before was different



Because "Canadian Resident for Tax Purposes" is not the same as "Canadian Resident" immigration definition.


When my sister moved back to Canada from the UK with her British husband, he had to file because he was "resident for tax purposes" even though it took over a year and a half to get his permenant residency (immigration).


As for the GST credit, he probably gets it because he checked the box on his return. If you both checked the box the credit will go to whichever spouse's return CRA processes first.


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## Robillard (Apr 11, 2009)

Berubeland said:


> If you are not living here and don't make income here and don't spend money here I'm not sure you are eligible for GST/HST credit.
> 
> Call the CRA to find out.
> 
> The Canadian government is weird. Mu husband is not legal here but he gets our GST/HST credit. And they want him to file an income tax return every year and they gave him a temporary tax number to do so. But that was last year... the year before was different


Berubeland, I think you are right about the GST/HST tax credit. In the case of the OP though, she was probably receiving it because she filed a return for the 2008 tax year, she qualified as a Canadian resident and her income was low enough. The GST/HST tax credit is paid out quarterly over the 12-month period starting the July after the end of the relevant taxation year, i.e. the tax credit for the 2008 tax year is paid out in quarterly installments starting July 2009.


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## kika (Jan 14, 2010)

I called CRA, I talked to a nice lady and she told me if I had not resided in Canada and had no income in Canada in 2009 I do not have to file a return 2009. I thought this information might help someone else as well.
Thanks to all again.


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## ghostryder (Apr 5, 2009)

kika said:


> I called CRA, I talked to a nice lady and she told me if I had not resided in Canada and had no income in Canada in 2009 I do not have to file a return 2009. I thought this information might help someone else as well.
> Thanks to all again.



But if you are "Canadian Resident for Tax Purposes" you have file a return and you are taxed on your worldwide income.


Don't expect the people on the 1-800 CRA line to fully understand/explain the finer points of Canadian Resident for tax purposes. You might want to talk to the International office:

http://www.cra-arc.gc.ca/cntct/international-eng.html



Whether or not you have to file a return in the European country will depend on their tax laws and any tax treaty applicable between the two countries. This is another area the general 1-800 CRA line will not have experience in.


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## Robillard (Apr 11, 2009)

ghostryder,

In the case of the OP, from what she said, it sounds like she did not live or earn any income in Canada or from Canadian sources (like Canadian-issued securities) at all in 2009. I don't think she qualifies as resident in Canada for tax purposes. 

You are right that the actual definition of residency for tax purposes comes from the relevant bilateral tax treaty (where such a treaty exists). You are also right that technically, the CRA does consider an individual's worldwide income in determining their tax liability. This is mainly because Canada has a progressive system of individual income taxation. If I earn $50,000 in Canada and $50,000 in a flat tax jurisdiction such as Latvia, the CRA cares about my foreign income for the purposes of determining the appropriate graduated tax rates to apply to my Canadian income. The Latvian tax authority doesn't care so much since they supposedly collect the same amount of tax on every dollar (or local currency equivalent) earned there. 

Ultimately, the system of bilateral tax treaties is meant to stop multiple tax authorities from levying tax on the same income. In the example I mentioned, the CRA can only collect tax on $50,000 of income, and not on the full $100,000. If they did, I could apply for relief from double taxation under the mutual agreement procedure article of the tax treaty. The CRA and the Latvian tax authority would then have to work it out. 

This example is ridiculous since the amount of tax at stake is so small, but it is an example of how the system works.


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## kika (Jan 14, 2010)

ghostryder said:


> But if you are "Canadian Resident for Tax Purposes" you have file a return and you are taxed on your worldwide income.
> 
> 
> Don't expect the people on the 1-800 CRA line to fully understand/explain the finer points of Canadian Resident for tax purposes. You might want to talk to the International office:
> ...



I called International tax office, not 1-800 CRA line. I did not enter Canada in 2009, I did not have any income in Canada in 2009, I have no ties to Canada- no family member in Canada, no bank accounts, no property, no valid driver's license.


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