39 plain-English guides on canadian tax, each one ending in what to do next.
Many non-residents of Canada file no return once Part XIII withholding settles their income. You file for the year you leave, Canadian work, property sales, rent or pensions.
Canadian TaxYou're a deemed non-resident of Canada when Canadian rules keep you resident but a tax treaty makes you resident elsewhere. Non-resident rules and departure tax then apply.
Canadian TaxNo. Canada has no estate tax, but death triggers income tax on the deceased's final return through the deemed disposition and RRSP or RRIF inclusion, plus provincial probate fees.
Canadian TaxForm NR5 asks the CRA to cut non-resident tax on your Canadian pension, RRIF or RRSP payments because you'll file a section 217 return. Approval usually covers five tax years.
Canadian TaxYou don't apply to become a non-resident of Canada. You cut your significant ties, settle abroad, and declare it on your departure-year return. NR73 is optional.
Canadian TaxCanada has no LLC. You choose a sole proprietorship, partnership or corporation, or a ULC in Alberta, BC or Nova Scotia. How each is taxed in Canada and the US.
Canadian TaxAn RCA is employer-funded retirement savings taxed through a 50% refundable tax. Leave for the US and payouts face 25% Part XIII tax; a US citizen faces open 409A questions.
Canadian TaxRRSP withholding is 10%, 20% or 30% for Canadian residents (different in Quebec) and 25% for non-residents. For residents it's a prepayment. Here's the final tax on each side.
Canadian TaxT1142 reports what you got from a non-resident trust; T1141 reports what you put in. Who files each, the estate exception, the April 30 due date and the penalties.
Canadian TaxCRA lists no fee to file a departure return. One firm's emigrant return base rate is $325; a late Form T1161 alone can cost $2,500. What firms charge, what moves it, and ours.
Canadian TaxA Canadian non-resident return has no CRA filing fee, and some non-residents need no return at all. Firm prices we found start at $350; our section 216 return is $700.
Canadian TaxA section 216 return costs nothing to file yourself. Firms list $350 and $750 to $950 CAD; ours is $700 USD. With real expenses, it can turn a 25% tax on gross rent into a refund.
Canadian TaxFiling a T1135 yourself costs nothing. Preparer prices we found start at $100 and $500 a form, and a late T1135 costs $25 a day up to $2,500 per year, before the bigger penalties.
Canadian TaxThe CRA agrees with taxpayers on objections 55% of the time, but success rates vary widely by issue type. See which disputes are worth fighting.
Canadian TaxWhen a Canadian corporation fails to remit payroll source deductions, GST/HST, or employee CPP/EI premiums, the CRA can pursue the directors personally.
Canadian TaxHow CRA installment payment arrangements work, what the CRA will accept, the interest that keeps accruing, and the consequences of missing a payment.
Canadian TaxCRA late-filing penalties for T1, T2, T1135, and information returns. How the automatic and repeated penalties work, and when the CRA will waive them.
Canadian TaxHow the CRA uses the net worth method to reassess unreported income, the common errors in its math, the burden of proof, and how to challenge it.
Canadian TaxA personal services business (PSB) reclassification is one of the most expensive things the CRA can do to a small corporation.
Canadian TaxThe CRA also reassesses under ITA 15(2) when a shareholder borrows from the corporation and does not repay within the statutory window.
Canadian TaxWhen the CRA denies or reduces an SR&ED claim, you can request a review, file a Notice of Objection, or appeal to the Tax Court of Canada.
Canadian TaxThen, when the estate redeems or sells those shares back to the corporation, subsection 84(2) converts the redemption proceeds into a deemed dividend.
Canadian TaxOntario's estate administration tax charges 1.5% on every dollar of estate value above $50,000. On a $2 million estate. Covers key rules, filing.
Canadian TaxThe CRA sends review letters, processing reviews, and full audits. Most people call all of them an audit, but the response strategy changes with each type.