Hi,
I am seeking assistance with preparing tax for the work permit holder.
The client is working in Canada for more than 6 months however family stays out of the country and no significant ties to Canada; what residency category should I select?
What tax credits /expenses allowed?
Spousal, Children?
Rental expenses?
what is the CRA reference.
Thanks
Sudesh
This person’s tax reporting journey should likely have begun a year ago already.
Their employer should already have examined a whole lot of things, including liaising with CRA regarding any applicability of Regulation 105.
Did this employee pretend to their employer that they were tax-resident in Canada?
The facts of case will need to be examined in depth before it can be properly determined if Section 115 applies to this individual. It may be that S115 applies.
Guesses or assumptions about the fullness of the facts may be right, or they may lead to errors.
Thanks for your feedback!
Do not have much information. Is there a questionnaire I can use with the employer to figured this out?
You will know what the Employer currently thinks by looking at the historical T4.
However, I would think it fairly likely that the Employer was working with incorrect information from the employee, and/or has made a mistake.
It is also not impossible that the employee’s facts are such that they should be taxed on world-wide income. However, if we were to discuss every possible scenario of all possible facts that families could have, we would use the several thousand pages of the Act and Regulations, and more, quickly filling up the entire capacity of this forum…
GR: If the individual is earning money from a Canadian source, he/she is a Taxpayer treated in the same way as Canadian Resident.
However, further info is needed to determine the right status and the applicability of different treatments under IC75-6R2 .
Mack