Hello everyone. I have a pressing matter concerning an immigrant who relocated to Canada from South Africa back in 2016. In 2016 she earned income in Canada from August to December, and had earned income in South Africa which she reported in South Africa. On filing her 2016 return this income was reported to the CRA along with her Canadian earnings. Her concern is that the income earned in South Africa is not showing in her CRA account. An adjustment was made in 2019 to address the issue but the adjustment was not made. Is there anyway of recording this so that it shows up as income. Are there any steps which might have been overlooked? Your help is greatly appreciated.
If I am reading your question correctly, she was not a resident of Canada prior to the time she had earnings from August through December 2016. The South African earnings were prior to her arrival in Canada?
If she had no residency status prior to August, her South African earnings would not be subject to tax in Canada. I hope this helps.
If you filed her 2016 T1, and reported the foreign income (in addition to Canadian source income), I assume that means you determined she was factually a resident of Canada in 2016. That’s usually the big question.
Now, you say her foreign income “…is not showing in her CRA account…”? I’m not sure what you mean. Does her 2016 NOA not match what you filed? If so, the NOA should include an explanation. If there is none, phone CRA and ask why. If you are looking for a T slip or something, there will be none - T slips are issued only by employers/companies/etc operating in Canada.
Sounds like there might potentially have been several steps overlooked.
: Copy of her stamped Landed immigrant papers upon landing in Canada
: Copy of her filing and assessment of the 28 February 2017 foreign (SARS) tax return, any IRP5 slips etc (Also paying attention to declarations of tax-emigration)
: Examination of family ties, to assist in establishing the exact day upon which tax-residency changed
In addition, a bit troubling is the reference to “earned income in South Africa”.
Since the day of becoming tax-resident in Canada, ALL her WORLDWIDE income (not only “earned income”) is reportable in Canada, regardless of wheresoever else reported.
Whilst not common that “earned income” would be paid for a period after tax-emigrating from South Africa, it has been known to happen. In that case, care should be taken to see whether errors were made by either the former employer and/or the taxpayer in filing/reporting the nature of that (possibly non-resident) income.
Could be that her 2016 Canadian-immigration T1 tax return was not filed correctly… So all details of that should be re-checked.