Thursday, July 16, 2009

Canada Revenue Agency (Revenue Canada)



Revenue Canada is now known as Canada Revenue Agency (CRA). It administers tax laws for the Government of Canada and for most provinces and territories. Canada Revenue Agency also administers various social and economic benefit and incentive programs delivered through the tax system.

Revenue Canada is much like the Philippines' Bureau of Internal Revenue.

As a permanent resident in Canada, you also need to familiarize yourself with Revenue Canada's taxation, tax forms, when to file your income tax returns, etc.

Here are some information from Revenue Canada about your tax obligations

As a resident of Canada, you:
  • must report "world income" (income from all sources both inside and outside Canada) on your Canadian income tax return;
  • must ensure that you pay the correct amount of taxes according to the law;
  • have the right and responsibility to verify your income tax status each year;
  • can claim all deductions, non-refundable tax credits, and refundable federal, provincial, or territorial credits that apply to you.
As a newcomer to Canada, you should be aware that most individuals who reside in Canada file only one income tax return for the tax year, because the Canadian government collects taxes on behalf of all provinces and territories except the Province of Quebec.

Note
If you live in the province of Quebec, you may need to file a separate provincial income tax return. For information about your provincial tax liability, contact the Revenu Québec.

Do you have to file?

As a resident of Canada for part or all of a tax year (January 1 to December 31), you must file a tax return if you:
  • owe tax; or
  • want to receive a refund because you paid too much tax in a tax year.
Even if you have no income to report or tax to pay, you may be eligible for certain payments or credits. In order to receive the following payments or credits, you must file an income tax return.

  • the GST/HST credit (goods and services tax/harmonized sales tax);
  • Canada Child Tax Benefit (CCTB) payments;
  • provincial or territorial tax credits.
For more information, please see "Do you have to file a return?" in the General Income Tax and Benefit Guide.

Which tax package?

For the tax year that you are a newcomer to Canada and for each tax year that you continue to be a resident of Canada for tax purposes, use the General Income Tax and Benefit Guide and the forms book for the province or territory where you live on December 31 of the tax year.
  • It is important to use the forms book for your province or territory because tax rates and tax credits are different in each province and territory.
  • If you live in the province of Quebec, you may need to file a separate provincial income tax return. For information about your provincial tax liability, contact Revenu Québec.
Filing due date

Your income tax return has to be filed on or before:

  • April 30 of the year after the tax year; or
  • if you or your spouse or common-law partner carried on a business in Canada (other than a business whose expenditures are mainly in connection with a tax shelter), the return has to be filed on or before June 15 of the year after the tax year.
Note
A balance of tax owing has to be paid on or before April 30 of the year after the tax year, regardless of the due date of the tax return.
Entitlement to benefits and credits

As a newcomer to Canada, you may be eligible for the goods and services/harmonized sales tax (GST/HST) credit, the Canada Child Tax Benefit (CCTB), and/or the Universal Child Care Benefit (UCCB) payments in the year you became a resident of Canada.

  • To apply for the GST/HST credit, complete Form RC151, GST/HST Credit Application for Individuals Who Become Residents of Canada.
  • To apply for the CCTB and/or the UCCB payments, complete Form RC66, Canada Child Benefits Application. Depending upon your immigration and residency status, you may also have to complete the schedule Status in Canada/Statement of Income.
For more information about Revenue Canada visit www.cra-arc.gc.ca