Of the many reasons why so many people want to migrate to Canada is the privileges that they can avail when in Canada. However while living in Canada and once you start earning here you must also be familiar with the various tax related implications. As a new immigrant to Canada you would be happy to know that the Canada Revenue Agency(CRA) treats new Canadians differently. For making the new comers familiar with the tax matters the Canadian Tax system in the first year first focuses on establishing their presence in the tax system.
Residentialties determine Tax status
If you are new to Canada then you might be wondering about the matters relating to your income. What you must take note as someone ,who is new to Canada is that regardless of whether or not you’ve been granted residency within Canada, you may be considered a newcomer in terms of Canadian tax law. You must also be aware that in case you happen to be a protected person under the “Immigration and Refugee Protection Act” or also in case you have received“approval-in-principal” to stay, you would have to file your tax return.
Your residential ties is what determines whether you need to pay taxes or not as per the Canadian Government. It is possible that you are not a citizen but you own a home in Canada, or have dependants living in Canada, or have a Canadian spouse or common-law partner. In all these cases the CRA considers them to be significant factors in establishing residential ties to Canada. Apart from there may be other instances which may be considered for you having residential ties with Canada.
Does everyone having residential have to file tax returns?
Yes,if you have been determined to have residentialties to Canada, then have to file a tax return. It may be for part or all of a tax year.This is even if you didn’t earn any income during that year.However filing it is beneficial as once you do it you would be eligible for a whole range of benefits from the Canadian Government.
