Tax and Ukrainian Refugees

Walter Harder

In an effort to assist Ukrainians who are fleeing the war and wish to come to Canada, the government has streamlined the process for entry. Through the “Canada-Ukraine Authorization for Emergency Travel” program, applications are expected to be processed in as little as two weeks. They will allow approved applicants to stay in Canada for up to three years. Once here, they can apply for permanent residency. Applicants will be allowed to work or study while in Canada.  There are interesting tax consequences for that.

Upon entry, the immigrants are expected to be issued a tax account number and would be considered to be residents of Canada for income tax purposes starting the day that they arrive, similar to immigrants with work or study permits. As residents at the end of the year of entry, they will be eligible for the GST credit and, in provinces that have refundable credits, any provincial credits. However, they will not be treated as refugees or “protected persons.”  

Since men between the ages of 18 and 60 are expected to remain in Ukraine to fight in the war, the vast majority of these immigrants will likely be women and children. Unfortunately, without refugee status, these families will not be eligible for government support or for the Canada Child Benefit until they have been in Canada for 18 months.

Although unofficial, it has been suggested that families who take in Ukrainians arriving in Canada under this program may be eligible for incentives (akin to those being offered to UK residents who assist Ukrainian immigrants), perhaps through the tax system.

We’ll keep you informed through Knowledge Bureau Report, as we learn more.

Additional educational resources: Don’t miss this opportunity to take Canada’s most up-to-date and comprehensive Advanced T1 Tax Update Course for Professional Tax Accounting firms and their new and returning staff who will file 2021 T1 Returns. This is Canada’s #1 tax training program for busy practice owners who need to recruit and train staff in time for this tax season. 

In addition, stay up-to-date with the latest technical news for tax and financial professionals by attending the May 18 CE Summit, when the most current issues and tax legislation are discussed to help advisors help their clients make better financial decisions.