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PLEASE SAVE MY TAXES

Mohan Damle is a Chartered Accountant from India with over 25 years of experience spread over 3 continents. Before moving to Canada Mohan gained vast experience while working in India and Middle East. (more details at the bottom)

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