Tax Tips: Help Newcomers to Canada With Unique Tax Filing Rules

According to Statistics Canada, 20.6% of Canada’s total population is foreign born. Between 2006 and 2011, 1.1 Million foreign-born people immigrated to Canada from Asia, Africa, the Caribbean, Central and South America.

This year, new immigrants include refugees who will want to come up to speed on tax filing, especially because no income is required to qualify for refundable tax credits.

Taxpayers who immigrate to Canada during the year are required to file a Canadian tax return to report their world income during the period in which they were resident in Canada; that is, based on the actual number of days resident here during the year. Provincial taxes, if any, are based on residency on the last day of the calendar year.

The Fair Market Value (FMV) of their assets at time of immigration must be calculated and, in some cases, personal amounts are prorated according to the number of days the taxpayer was resident in Canada. Income verification is required to collect refundable tax credits. See a tax specialist for help with the required forms.

For detailed information please refer to Winter 2016: Advanced Personal Tax Update - Knowledge Desk Journal.

This 300-plus-page Knowledge Desk Journal describes tax changes line-by-line presented during the Distinguished Advisor Workshop: Advanced Personal Tax Update. It is referred to by many as “The Tax Practitioners’ Bible.” Now you can have it at home or your office and use it throughout the tax season.

©2016 Knowledge Bureau Inc. All Rights Reserved. Used with Permission.

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