Archives: Answers

Answer

HST Quarterly instalments

Hi Anthony, Good questions. This situation is very common when sales drop during the year. 1. Do you still need to pay the 4th instalment if you’ve already overpaid? No. If your actual HST net tax for the year will be less than the instalments already paid, you do not need to pay the 4th … Continue reading HST Quarterly instalments

How to delay OAS …if non-resident of Canada….

Hi Luke, Yes, as a non-resident of Canada, you can delay starting Old Age Security (OAS), and in your situation that is often a very sensible planning strategy. A few key points that should help clarify things: No application is required to “delay” OAS OAS only starts once you apply (or if you are auto-enrolled). … Continue reading How to delay OAS …if non-resident of Canada….

TFSA holdings

Hi Natalie, You’re asking the right question well in advance 👍 You’re correct that once you become a U.S. tax resident, a TFSA is not recognized as tax-free by the U.S. From a U.S. perspective: Interest, dividends, and capital gains inside a TFSA are taxable annually The account is not treated as a pension or … Continue reading TFSA holdings

reg non residence tax return

Hi Dev, thank you for the clarification and for your kind words. To answer your questions directly: 1) Can Form T1159 be used to file 10 years of tax returns? No. Form T1159 is only the VDP application form. It is not a tax return and it cannot be used to report rental income or … Continue reading reg non residence tax return

REG VDP PROPOSAL FOR NON RESIDENCE WITH CANADIAN SOURCE INCOME.

Response: You are correct to be cautious here — Section 216 returns cannot be filed “through” the VDP, because Section 216 is an election, and elections are generally excluded from VDP relief. A few key points to clarify the process: 1.VDP vs. Section 216 elections The Voluntary Disclosures Program is intended to correct failures to … Continue reading REG VDP PROPOSAL FOR NON RESIDENCE WITH CANADIAN SOURCE INCOME.

Declare a checking bank acct as non-resident

Hi Cho, Yes. Even if the chequing account does not earn interest, it should still be designated as non-resident once you become a non-resident of Canada. The non-resident designation is not based on whether the account earns income, but on your tax residency status. Banks are required to know whether an account holder is a … Continue reading Declare a checking bank acct as non-resident

Issues from not paying Withholding Tax on Rental Income

Not Paying Non-Resident Withholding Tax on Canadian Rental Income Michael — thanks for laying this out clearly. Below is how CRA typically handles this. 1) Penalties and interest for 2025 Yes. Since 25% non-resident withholding was not remitted for 2025, CRA will generally automatically assess: A 10% late-remittance penalty on the unremitted tax, and Interest, … Continue reading Issues from not paying Withholding Tax on Rental Income

Option trading–can i setup a CCPC actively trading Option/stock and qualify SBD?

Can a CCPC actively trading options/stocks claim the Small Business Deduction (SBD)? Short answer: Yes — if the corporation is carrying on an active business and is not a Specified Investment Business (SIB), the Small Business Deduction can be claimed. The controversy comes from how CRA classifies proprietary trading businesses. Step 1: Is the activity … Continue reading Option trading–can i setup a CCPC actively trading Option/stock and qualify SBD?

Question on secondary ties.

Answer: Secondary Ties, Health Insurance & Correcting Your Departure This is a very common situation, so you’re not alone. For Canadian tax residency, CRA does not look at any one factor in isolation. Residency is determined based on your overall residential ties, which are grouped into primary and secondary ties. 1. Provincial health insurance is … Continue reading Question on secondary ties.

If I never cancelled my provincial health insurance for 3 years but was outside Canada living, will CRA expect I pay worldwide income?

Not cancelling your provincial health insurance does not automatically make you a Canadian tax resident, but it is a secondary residential tie that CRA will consider when assessing your tax residency, especially if you are trying to backdate your departure from Canada. How CRA determines tax residency CRA does not look at any single factor … Continue reading If I never cancelled my provincial health insurance for 3 years but was outside Canada living, will CRA expect I pay worldwide income?

Dividend question: does my corp need to fill out schedule 55 if a dividend was paid?

Hi, thanks for watching the videos and for your question. Short answer: Usually no. Schedule 55 (Eligible Dividend Designation) is only required if the corporation is designating a dividend as an eligible dividend under the gross-up and dividend tax credit rules. If you paid yourself a regular (non-eligible) dividend, which is the case for most … Continue reading Dividend question: does my corp need to fill out schedule 55 if a dividend was paid?

Planning for becoming Non Resident of Canada

Hi Vivek, Great question, and one that comes up often when clients are planning for non-residency. 1. No departure tax on accrued interest already reported If you have been reporting the annual accrued interest from your Indian Fixed Deposits / GICs on your Canadian tax return each year (as required), then there is no additional … Continue reading Planning for becoming Non Resident of Canada

can we receive a monetary gift from my father to use for a down payment without being taxed?

Hi Emma, Thank you for your question — this is a very common concern for cross-border families, and I’m happy to clarify. 1. Canada – No Gift Tax Canada does not impose a gift tax. If your Canadian father gives you money for a down payment, neither you nor your husband will pay Canadian tax, … Continue reading can we receive a monetary gift from my father to use for a down payment without being taxed?

Financial Planning for Non-Resident Canadians returning back to Canada and also tax Tips

Hi Harshad, Thank you for your question. Yes — we do assist Canadians returning from the U.S. with cross-border tax planning and annual filings. Based on what you’ve shared, here are the key areas we can help with: 1. 401(k) and IRA Planning Your U.S. retirement accounts remain tax-deferred when you move back to Canada. … Continue reading Financial Planning for Non-Resident Canadians returning back to Canada and also tax Tips

Claiming FICA taxes as Foreign tax credit if person has more than 40 credits

Hi Rohan, CRA’s T2209 instructions can seem contradictory, but the rule is actually straightforward: U.S. FICA (Social Security + Medicare) is always eligible for the Foreign Tax Credit for Canadian residents, even if the person has 40 credits and will later receive U.S. Social Security benefits. Here’s why: The general rule says foreign public pension … Continue reading Claiming FICA taxes as Foreign tax credit if person has more than 40 credits

Pin It on Pinterest