I have a client who has been working in Canada for 3 years. He has not received his residency yet so he is still considered a Deemed Resident. Or am I wrong with this.
I was able to efile his return for 2022. However, I tried to e-file his return this evening and received an error code 146-A which is not within the CRA error codes. Am I missing something here?
The message received from CRA is as follows
1.It was indicated that the client is a non-resident or deemed resident; however, no response was provided for the client’s country of residence on December 31, 2023.
2.An entry was indicated for the client’s country of residence on December 31, 2023; however, it was not indicated that the client is a non-resident or deemed resident.
These messages make no sense. I had everything the same as last year. But I do see an new line on the info page where Tax Cycle prepopulated 3. Non-resident or Deemed resident.
Help would be very much appreciated! Thanks so much!
A person can have a work permit, be in Canada for years, and still be “Tax non-resident” in Canada. It is not possible to correctly determine this person’s case.
It will take more digging for facts and a few hours, and meeting the person.
Tax Residency is very complicated, and most issues require the tax preparer to be very familiar with the tax treaties of the countries involved, the foreign tax returns of the client, and especially all of section 250 of the Income Tax Act, and relate those to all of the particular facts of the client.
I recognize that you are using Taxcycle but when I google the error code there is a post for Profile that says this error indicates that the software isn’t ready yet. Updates to the program need to be done.