Transcript - Newcomers to Canada and the Canadian Tax System, Segment: Residency status

Host: Welcome to the segment called Residency status, part of the Newcomers to Canada and the Canadian Tax System video.

This segment mentions links where you can get more information. You can find them in the Related links for this video.

With me is Frank Stewart. Welcome Frank.

Subject matter expert: Thank you Kathleen.

Host: What do newcomers to Canada need to know about the Canadian tax system?

Subject matter expert: First, a newcomer needs to know if he or she is considered a resident of Canada for tax and benefit purposes. Even if you are not a permanent resident or a landed immigrant, you may still be considered a resident of Canada for tax and benefit purposes.

Host: Why is that important?

Subject matter expert: When you're considered a resident of Canada for tax and benefit purposes, you have to report your income from all sources, both inside and outside of Canada, and you have the right to claim certain deductions, credits, and benefits.

Host: Let's say I just received my citizenship. Is my residency date the same as the date I received my citizenship?

Subject matter expert: The citizenship date may not be the same as the date you are considered a resident of Canada for tax and benefit purposes.

The CRA considers you to be a resident of Canada for income tax and benefit purposes when you establish significant residential ties in Canada. You usually establish these ties on the date you arrive in Canada.

Host: What exactly are residential ties?

Subject matter expert: You are considered to have established significant residential ties in Canada when you have a home in Canada; you have a spouse or common-law partner or dependants who moved to Canada to live with you; you have personal property in Canada, such as a car or furniture; or you have social ties in Canada.

Other ties may be considered in establishing residency, such as a Canadian driver's license, health insurance with a Canadian province or territory, and Canadian bank accounts or credit cards.

For more information on residential ties, go to the CRA webpage called Newcomers to Canada (immigrants).

For more information on the definition of a spouse or common law partner, go to the CRA webpage on marital status.

Host: Who can be considered a resident in Canada?

Subject matter expert: Newcomers to Canada who have established residential ties can be:

  • a protected person;
  • people who have applied for or received permanent residency status from Citizenship and Immigration Canada; and
  • people who have received approval-in-principle from Citizenship and Immigration Canada to stay in Canada.

Host: What can I do if I am not sure about my residency status and the date I became a resident for tax and benefit purposes?

Subject matter expert: You can ask for an opinion on your residency status by filling out and submitting Form NR74, Determination of Residency Status (Entering Canada).

Host: Where can I get help to fill out Form NR74?

Subject matter expert: You can call the CRA at 1-800-959-8281 from Canada and the U.S., or call 613-940-8495 if you're outside of Canada and the U.S. The CRA accepts collect calls by automated response.

Host: Where do I send the form?

Subject matter expert: Send Form NR74 to the International and Ottawa Tax Services Office as soon as possible so you can receive an opinion on your residency status before your income tax and benefit return is due.

The address and telephone numbers for the International and Ottawa Tax Services Office are on the CRA website.

Host: What happens after I send in Form NR74?

Subject matter expert: The CRA will reply to your request based on the information you provided on the form.

The CRA will tell you the date you are considered a resident for tax and benefit purposes.

From that date forward, you may be eligible for benefits and credits. You can claim them by filing an income tax and benefit return.

Host: What do I need to do if I return to Canada after emigrating and reestablish Canadian residency for tax purposes?

Subject matter expert: This video is directed primarily to newcomers. The rules that apply to someone returning to Canada after emigrating and re-establishing Canadian residency for tax purposes are beyond the scope of this video.

For more information, go to the CRA webpage on dispositions of property.

Host: Where can I read more about residency status?

Subject matter expert: More information on residency status is available in Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status. You can also get more information by calling the CRA at 1-800-959-8281 from Canada or the U.S., or calling 613-940-8495 from outside Canada and the U.S. The CRA accepts collect calls by automated response.

Host: Thank you Frank.

This concludes the segment called Residency status, part of the CRA's Newcomers to Canada and the Canadian Tax System video.

Thank you for watching.

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