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Question:
I
have
a job in Middle East and I am also a Canadian Citizen / Landed
Immigrant. How can I get Canadian tax-exempt status?
Answer:
First
of all the term residency is applied and defined differently
in Immigration and in the Tax Laws. The definition of
residency is very subjective in the tax law and it is more
based on the meeting certain conditions. Which are either
initial or subsequent conditions.
The
subsequent conditions come in to play only when a decisive
decision cannot be applied based on the initial conditions.
The
initial conditions cover areas such as maintenance of a home
in Canada, is this available for occupancy, the residency of
the of the individual's immediate family, the
intent of the individual to return to Canada, and the number
of visits and duration of such visits to Canada.
The
subsequent conditions include the citizenship, where do the
rest of the family live, Has the individual maintained social
and economic ties in Canada, as well as the ties the
individual has maintained with the other country other than
Canada, as well the implication of laws of such other country.
To
conclusively determine the residence of the individual one
would need to examine the details of the each case and the of
the taxpayer's life in general.
A
study of the detailed provisions of the Revenue Canada’s
positions reveals that if the taxpayer were out of the country
for 1 or 2 years or such short term then it would be construed
that the individual has retained the Canadian residency for
the purpose of Income Tax.
Q:
What
records should I keep, so I can be ready to file tax return?
A:
Individual
should keep following records to avoid any problem of
supporting when the time of Tax filing comes.
a)
Invoices and receipts to support income and expense claims
must be kept in a logical fashion such as Jan-Dec for any year.
b)
File the records as they occur do not try to look for details
on the eve of filing a tax return, Keep your filing as simple
as you can, may be an envelop for each month is a good idea
for loose receipts or bills, Keep your credit card, bank
statements in a logical fashion again Jan-Dec.
keep the supporting in the same file. Better if you can
make an annual summary this will help you to summarize the
annual expense by category and fill in only one amount in the
tax return.
c)
If you use your car for business purpose or have company
provided car then you must maintain a travel log detailing
travel mileage and expenses.
d)
Finally remember, the organized you are you will be able to
file your tax return as fast as you can. This will facilitate
either a faster refund or will save on the penalty on late
filing as the case may be.
*
Mohan Damle is a Chartered Accountant from India with over 25
years of experience spread over 3 continents. Mohan comes from
a family of well-known Chartered Accountant from Bombay.
Before moving to Canada Mohan gained vast experience while
working in India and Middle East.
After
undergoing an intensive training with Sharp & Tannan a Top
3 Chartered Accountancy firm in India. Mohan gained a
substantial experience in Philips India and ABC Consultant’s
at a very senior level. This experience prepared him to take
on more challenges in his new Job at Eastman Kodak Company at
their Dubai Location. Mohan quickly rose to the position of
Director Financial Analysis overseeing the entire Middle East
region.
A
very well known and connected figure in Toronto, Mohan was
able to quickly establish his Tax and Accounting Practice in
this land of Opportunities called CANADA. Mohan conducts his
business in English, Gujrathi, Hindi, Urdu, Punjabi and Arabic
with absolute fluency.
For
an absolute street smart, down to earth professional advise at
economical rates you can reach Mohan at m_damle@yahoo.com or
at his Toronto office 905-502-9589
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