have a job in
Middle East and I am also a Canadian Citizen / Landed
Immigrant. How can I get Canadian tax-exempt status?
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.
subsequent conditions come in to play only when a decisive
decision cannot be applied based on the initial
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.
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
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.
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.
What records should I keep, so I can be ready to file tax
Individual should keep following records to avoid any
problem of supporting when the time of Tax filing comes.
Invoices and receipts to support income and expense claims
must be kept in a logical fashion such as Jan-Dec for any
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.
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.
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.