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David
My client has a married daughter in Hong Kong. Her husband is a pilot for Cathay Pacific. They want to come and live in Canada.
They want to know the tax rules. Not clear if he will be paid from Hong Kong (does it matter?) Their actual question is, "Will we have to pay tax for the whole year?"
I've forgotten all I ever knew on this subject, which wasn't much to begin with. Or is it merely the Dec 31 residency determination.
I've got a horrible feeling I'll be doing their tax returns as well, not to mention the client's son's two daughters who are now working in the parents' stores!
Merci
NXXXXXXXXXXXXXXX
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david ingram answers:
The pilot and his wife will have to pay Canadian Taxes on world income from the day that they land in Canada. I presume that the wife is a Canadian Citizen and will sponsor her husband into Canada as a landed immigrant or permanent resident.
For Canadian Tax purposes, if they have established residency in Canada, they are taxable in Canada on their world income whether it is paid from Hong Kong, Ethiopia, or Australia.
So, when time to do ythe returns, the first returns will have the date they came to Canad put in the "Date of Entry" box on page one of the return.
You then have to prorate all their personal exemptions by the number of days they were in Canada.
If we could assume that they came on Oct 1, they would be in Canada (31+30+31) 92 days. Their exemption amounts would be 92/365 x's the amount.
You can learn a lot more about this and see some sample tax cases at www.centa.com - click on "US/Canada Taxation".
david
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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