deemed resident or resident

[BobtheBuilder]

My mom has visited me previously and returned in 2003. She hasn't spent a single day in Canada for year 2004.
She doesn't own a house or any other property.
She has a Canadian bank account (what CRA calls a significant "residential tie").
She has a SIN but expired (as she didn't renew before the deadline with HRSDC).

Now question is,

Is she required to file a tax return for 2004? Is a "deemed resident" or "resident" just like you and me?

Thanks for any thoughts.

 

[haoren1]

Based on the information given, she is not likely a Canadian resident. Besides, even if she were a Canadian resident, she is not required to file a Canadian income tax if she does not earn enough income. When she has not made over $8,000 in 1994, the only benefit of filing an income tax return may be to get GST credit.

 

[haoren1]

A deemed resident is someone who is away from Canada, or travels in and out of Canada, but meets those tests usually used by Revenue Canada to determine residency. For example, if one lives overseas but leaves his wife in Canada and maintains a house in Canada, then Revenue Canada will argue that he has not severred all his Canadian ties, and therefore, a deemed Canadian resident. Another example of a deemed Canadian resident would be someone who has spent over 183 days in Canada.
The US income tax is based on citizenship. Canadian tax is based on residency. Both Canadian residents and deemed residents are required to report world income, wheather he is a Canadian citizen or not.
Hope this answers your question.

 

[开喜]

haoren1, 你解释的好清楚.

 

[BobtheBuilder]

Thanks, Haoren1

You offer pretty good explanation, however didn't touch the fact that she holds a Canadian bank account. From CRA's regulation, someone who has a "residential tie" is considered a "resident" and required to file tax return. And one of the residential ties is holding a Canadian bank account.

I am still confused. The advantage to file a tax return for her is to get the GST rebate, since she doesn't really have any income other than a few interest dollars, far from $8000 as far as her world income concerned. I am not against to file a tax return, just don't know if it's against the law to do so.

Await your further assistance.

 

[Xiaomimi]

Re: Thanks, Haoren1

最初由 BobtheBuilder 发布
You offer pretty good explanation, however didn't touch the fact that she holds a Canadian bank account. From CRA's regulation, someone who has a "residential tie" is considered a "resident" and required to file tax return. And one of the residential ties is holding a Canadian bank account.

I am still confused. The advantage to file a tax return for her is to get the GST rebate, since she doesn't really have any income other than a few interest dollars, far from $8000 as far as her world income concerned. I am not against to file a tax return, just don't know if it's against the law to do so.

Await your further assistance.

A Canadian bank account is not a significant tie. Only significant ties are : spouse or dependent child living in Canada, or a prime residence.

Are you thinking about filing tax return for your mother to get GST credit ? To get GST rebate, one must be living in Canada while applying, and must be a resident of Canada when the rebate is sent.

 

[spsun1]

This is one of the issues with our tax system. Once your SIN is with CRA, they will check whether you filed a tax return. You need to file a form nr73 and approved by them, she will not be bothered again.

http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.html