Newcomers to Canada (immigrants) First Tax Year

The following information is to you only for the first tax year during which you are considered a resident of Canada for tax purposes . Next, we will consider more than you are a newcomer to tax purposes.

If you immigrate to Canada, we believe that you have acquired (Grow) almost all your assets to their fair market value the day you immigrated. If you return to reside in Canada and you had a year deemed disposition of your departure, check out our Web dispositions of property .

Residency status

You become a resident of Canada for tax purposes when you established residential ties with Canada's leading, usually from the date of your arrival in Canada.

Newcomers who have established residential ties in Canada may be, as appropriate:

people who have applied for permanent resident status to Citizenship and Immigration Canada or who have received;
people who received the Citizenship and Immigration Canada an "approval in principle" to remain in Canada.
If you were a resident of Canada in a previous year and you have become non-resident, you will become a resident of Canada when you return to Canada and re-establish your residential ties.


What is residential ties?

Residential ties include:

a home in Canada;
a spouse or common-law partner (see the definition in the General Income Tax and Benefit Return ) and dependents who move to Canada to live with you;
personal property in Canada, as a car or furniture;
social ties in Canada.
Other ties that may be relevant are:

a Canadian driver's license;
credit cards issued in Canada or Canadian bank accounts;
health insurance in a province or territory of Canada.
For more information, see Interpretation Bulletin IT-221, Determination of resident status of an individual .

If you want an opinion on your residency status, fill out and send us Form NR74, Determination of Residency Status (Entering Canada) .


Your tax obligations As a resident of Canada:

you must report the income from all sources (income from sources inside and outside Canada) on your Canadian tax return;
you must make sure to pay the correct amount of taxes according to law;
you have the right and responsibility to verify your tax status each year;
you can claim all deductions, all refundable tax credits and all federal funding, provincial or territorial you are entitled.
As a newcomer to Canada, you should know that most individuals who reside in Canada must complete one tax return for the tax year, because the Canadian government collects taxes on behalf of all provinces and all territories, except Quebec.

Note
If you live in Quebec during the tax year, you may need to complete a provincial return. For more information, contact Revenu Québec .

Do you file a tax return?

Whether you are a resident of Canada for a part or an entire tax year (from 1 st  January to 31 December), you must file a tax return if you are in one of the following:

you owe taxes;
you want to request a refund.
Even if you do not have to declare income or tax payable, you may be eligible for certain credits or payments. You must file a tax return to receive the credits or payments to:

the credit for the GST / HST (Goods and Services Tax / Harmonized Sales)
payments of child tax benefit ;
tax credits, provincial or territorial.
For more information, see "Should you file a return? "In the General Income Tax and Benefit Return .


Which tax package?

For the tax year during which you are a newcomer to Canada, and for each of the years you continue to be resident in Canada for tax purposes, use the General Income Tax and Benefit and the forms book for the province or territory of residence at December 31 of the tax year.

Tax rates and tax credits are different in each province and territory, so it is important that you use the correct forms book for your province or territory.
If you live in Quebec, you may need to complete a provincial return. For more information, contact Revenu Québec .
Filing deadline

You must send your return on or before:

April 30th of the year following the tax year;
June 15th of the year following the tax year if you or your spouse or common-law declare business income in Canada (unless the expenditures in connection with the operation of the business are mainly abrix tax).
Note
Any balance due must be paid no later than 30 April of the year following the tax year, and this, regardless of the filing deadline.

Eligibility for benefits and credits

As a newcomer to Canada, you may be entitled to credit for the Goods and Services Tax / Harmonized Sales Tax (GST / HST), the Canada Child Tax Benefit (CCTB) and / or universal benefit for Child Care Benefit (UCCB) in the year you became a resident of Canada.

To claim the credit for the GST / HST, complete Form RC151, Request for the GST / HST Information for Individuals Who Become Residents of Canada .
To apply for the CCTB and / or UCCB, complete Form RC66, Application for Canadian children . In addition, depending on your immigration status or residence, you may need to complete Schedule entitled Status in Canada Statement of Income .

Immigration Consultants: The good, the bad and the ugly

DECEMBER 24, 2011

SIKANDER LALANI

A couple of months ago, an immigration consultant was arrested in Halifax (whose clients were primarily from the Middle East and South Asia) and, as a result, 1100 cases filed by this consultant are under investigation for obtaining citizenship and maintaining permanent residency without physically residing in Canada.

The Canadian Government has indicated that, if proven, citizenships and permanent residencies will be revoked.

A Vancouver Sun article reports, "a statement from Immigration Minister Jason Kenney said the charges follow 'an investigation into whether the consultant fraudulently helped individuals create the appearance they were residing in Canada in order to keep their permanent resident status, and ultimately attempt to acquire citizenship.' Kenney said that "where evidence permits, we will seek revocation of Canadian citizenship and deportation.

Canadians value their citizenship.

It is not something to be bought and sold with the help of crooked consultants." (Vancouver Sun - March 2 2011)"

There are many reasons to use an immigration consultant.

Families do not want to take risks with such an important life decision.

Business immigration cases require the use of a professional consultant because of the complex financial and business experience analysis involved in investor and entrepreneur applications.

Even in the case of skilled workers, applications are extremely detail-oriented and time consuming.

Given the current procedures in place that require the submission of complete documentation with the initial application, applicants run the risk of having their applications returned because of one minor missing document.

As a consequence, applicants face delays - and delays could very well mean that they become ineligible because the quota for the category they applied under is fulfilled during the delay.

The most compelling reason to use a consultant continues to be the fact that applicants are looking for peace of mind, a level of professionalism and knowledgeable advice in this important life changing decision.

How should you choose an immigration consultant? What are the three most important questions to ask? (1) Are you authorised to give immigration advice? Be sure to pick a consultant who is either a member of the Canadian Society of Immigration Consultants (CSIC) or the Immigration Consultants of Canada Regulatory Council (ICCRC), or a lawyer who is a member in good standing of a Canadian provincial bar.

Try to select a consulting firm whose CSIC member resides in Pakistan, as these consultants understand the local education system, job market and business documents.

(2) Are you a Canadian Citizen? Only Canadian citizens and permanent residents are allowed to be authorized CSIC/ICCRC advisors.

(3) Have you experienced life in Canada? Individuals who have worked and/or lived in Canada are generally in a better position to educate clients on the Canadian experience.

It is probably best to use consultants who were professionals before they entered the business of immigration consulting.

Lawyers, Finance Professionals, Accountants and Management Consultants who are duly authorized by the government of Canada to provide immigration advice are probably your best bet.

In Pakistan, every type of consultant exists: the good, the bad and the ugly.

Good immigration consulting firms tend to be managed by Canadian citizens duly authorized by the government to provide immigration advice and tend to have senior managers that have practiced in a professional field prior to making a career in immigration consulting.

Good consultants and firms will give you honest and genuine advice based on their individual and corporate experience.

They have good knowledge of immigration case law, can quickly research any grey areas and provide you straightforward and upfront advice.

Good consultants will not negotiate on professional fees unless the client gives them a compelling business reason to do so.

Perhaps the most distinguishing element of a good consultant is that they will refuse to take your case if they feel if it is ineligible and they will never offer you a guarantee.

A professional cannot guarantee anything that is not under their control, as decision making power on applications rests solely with the Canadian immigration authorities.

Thus, a good consultant constructs a case within the constraints of the law and based on extensive research and their experience.

Bad consultants may be Canadian citizens, they may even be authorized to provide immigration advice; however, they are generally not experienced and may make guarantees of approval or processing timeframes.

In Pakistan, there are many consultants who promise clients quick processing time frames.

As a savvy client, you should do your due diligence and research the market of consultants.

For example, if you notice that a consultant's promised processing times are outside the average range advised by local and international consultants, then you are probably better off staying away from such consultants.

A good way to check processing times is to visit the Canadian government's immigration website on which estimated processing times are displayed (albeit the information is not updated as regularly as it should be).

Also, processing times are subject to change.

Processing time frames that were valid at the beginning of your immigration process may get extended due to the sheer volume of applications received by the immigration authorities.

This is beyond the control of any consultant.

Be aware that there are scrupulous consultants who operate under the supervision of relatives and friends who are non-practising CSIC members.

Usually, the consultant is not eligible for CSIC/ICCRC because of his/her prior track record or because he/she is not a Canadian citizen or permanent resident and uses his/her relative as a proxy to get around these requirements.

Consultants who work under the CSIC/ICCRC authorised advisors are expected to be supervised and monitored closely.

Often, the CSIC member providing oversight is not a practising immigration professional and serves purely as a proxy.

In such situations, important aspects of the client's case must slip between the cracks from time to time.

Many such consultants will be able to process run of the mill and straightforward immigration cases.

However, in the 20 or 30 percent of cases that require serious analysis and application of the law, the consequences to the client can be quite serious.

Finally, the consultant that makes the Chinese look like amateurs with his/her ability to create documents out of thin air, the ghost consultant that the ghostbusters could not bust - the 'ugly' side of the profession of immigration consultants.

These consultants, who are generally not experienced, help or advise clients to create counterfeit documents, and help clients circumvent citizenship and immigration laws.

Most of all, they are generally not authorised by the government of Canada to provide immigration advice.

Some claim to be authorised, even though they are not authorised to provide immigration advice.

There is a consultant in Islamabad, Pakistan who advertises his/her HR professional designation as a substitute for a duly authorised CSIC/ICCRC designation.

This consultant is not a recognised immigration advisor under Canadian law.

What he/she is doing is illegal.

Stay away from such consultants.

They tend to have lower professional fees than most of the legitimate consultants operating in the market and will often accept cases when every consultant has turned you down.

Many of these consultants provide clients with advice that, if followed, could expose the client to criminal prosecution in Canada.

Document forgery and misrepresentation are serious offenses that are punishable by both jail time and heavy fines.

The 'ugly' consultant or "crooked", as the government of Canada terms them, often tells his/her client that one can get Canadian citizenship without actually physically residing in Canada.

Current immigration law allows judges discretion in granting citizenship to those who have not physically resided in Canada for all 1095 days of the requisite period.

However, this exemption is only possible for those individuals representing the Canadian government overseas, or if they are placed on an overseas assignment by a major Canadian corporation.

Even in such cases, discretionary power rests with the Citizenship judge.

For 99% of all immigrants there is practically no way to obtain citizenship without 1095 days (3 years out of 4 years) of physical residence in Canada.

Those who obtain citizenship by maintaining active bank accounts, credit cards, utility bills and rental agreements while 'physically' residing outside Canada are circumventing the law and misrepresenting themselves before the Canadian citizenship authorities.

This is a crime under Canadian law.

If you cannot reside for 3 years out of 4 years in Canada, then it is probably better to explore alternative residency options.

There are providers in the market offering legitimate alternative residency options that do not require physical residency.

Note, however, that these options are generally only available to high net worth individuals who are able to make an investment in the range of US $500,000.

Stay away from consultants who offer unqualified and exaggerated promises for Canadian immigration and citizenship.

As noted at the beginning of this article, the Canadian government is actively investigating the citizenship and immigration applications of those who are suspected of misrepresentation.

They have clearly indicated that if there is evidence of misrepresentation or fraud, permanent residencies and citizenships will be revoked.

Applications for permanent residency and citizenship, particularly those from high-risk countries like Pakistan, will be highly scrutinised by the Canadian government.

In fact, the Canadian government has a specialised anti-fraud unit that closely examines applications submitted from high risk countries.

Do not jeopardise your future and that of your children by taking the 'easy road' offered by crooked consultants.

Two simple yet powerful proverbs aptly sum up the message of this discourse - "nothing in life comes easy" and "if it looks too good to be true, then it probably is." Only retain the services of those who are positioned to provide immigration advice and have an established track record.

Migration is an important life decision.

Work with those people who make it their interest to protect your interest.

Copyright Business Recorder, 2011

Immigrant Wage, Employment Gaps Not Going Away: Report

By Joan Delaney
Epoch Times Staff

Despite higher education levels, immigrants experience higher unemployment and lower incomes than workers born in Canada, according to a new report.

Released Monday by RBC Economics, the report outlines the increasing size of the employment and wage gap for immigrants in Canada over the past 30 years.

While there was little difference between the unemployment rates of new immigrants and those born in Canada in 1981, a large gap emerged during the 1980s and 1990s, the report found.

By 2006, employment rates among immigrants were significantly higher than those among Canadian born—6.9 percent compared to 6.4 percent.

In 2005, the entire population of immigrants working full time in Canada earned an average of $45,000 a year, about $700 or two percent less than the average wage for Canadian-born workers. Those arriving in the previous five years earned just $28,700 on average.

The report estimates that the potential increased incomes for immigrants if their skills were rewarded similarly to Canadian-born workers would be $30.7 billion, or 2.1 percent of GDP in 2006 (the latest census data available).

Similarly, the potential immigrant unemployment rate would have translated into approximately 42,000 additional jobs.

“Employment growth is slowing as Canada’s population ages, which make it essential that every worker produce at their full potential,” said Dawn Desjardins, assistant chief economist, RBC.

“Underutilizing skilled labour is a gap we need to fill and immigrants represent more than 20 percent of our population. Even small improvements in immigrant outcomes could contribute positively to the Canadian economy.”

Working-age (16-64) immigrants in Canada are more likely to have a university degree than those who are Canadian born, and are older, on average. They are also more likely to live in large cities where earnings tend to be higher.

By gender, male immigrants have a higher earnings gap than female immigrants—about $16,500 for men and $7,000 for women. Conversely, the excess in the unemployment rate for women is larger than that for men, at 2.5 percentage points compared to a 0.7 percentage point difference for men.

The research suggests that gaps may be due to both genuine skill differences between immigrants and Canadian-born workers, and labour market inefficiencies that prevent immigrants from making full use of their skills, the report said.

Improved immigrant outcomes could be brought about through more extensive language training, faster credential recognition, or other integration initiatives, the researchers suggest. More rigorous evaluation of existing programs would also be helpful in understanding why gaps persist and how they can be addressed.

“This report shows that we are still not recognizing the skill level and talent that newcomers bring to Canada, and it’s as much the country’s loss as it is our immigrants,” said Camon Mak, director, Newcomer and Multicultural Markets, RBC.

“Canada was built on immigration, and that’s just as true today.”