ARCHIVED - General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada – 2007

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General Information

On this page…

• What's new for 2007?
  • Revised income tax information
• Are you using the correct tax package?
• National Register of Electors
  • If you check "Yes"
  • If you check "No" (or do not make a choice)
  • Deceased persons
  • Confidentiality
  • Contacting Elections Canada
• Let our symbols be your guide…
• Is this tax package for you?
• At your service
  • What if you need help?
  • Internet services
  • Getting personal tax information
  • Publications
• General Information
  • Determining your residency status
• Before you start
  • Do you have to file a return?
  • What date is your return for 2007 due?
  • What penalties and interest do we charge?
  • Social insurance number (SIN)
  • Canada Child Tax Benefit (CCTB) and Child Disability Benefit (CDB)
  • Universal Child Care Benefit (UCCB)
  • What tax package should you use if this one is not for you?
• Getting Started
  • What do you include with your return and what records do you keep?
  • What if you are missing information?
• Electing under section 217
• Electing under section 216.1
• After you file
  • What happens to your return after we receive it?
  • When can you expect your refund?
  • When will we pay interest?
  • Income tax problems?
  • What should you do if you disagree?
  • Taxpayer Bill of Rights, Taxpayers' Ombudsman, and CRA – Service Complaints Program
  • How do you change a return?
  • Can you file a return to claim a refund for a previous year?
  • What is a voluntary disclosure?
  • What should you do if you move?
  • Should you be paying your taxes by instalments?
• Identification
  • Personal label
  • Information about your residence
  • Marital status
  • Your spouse or common-law partner's net world income
  • Your spouse or common-law partner's Universal Child Care Benefit
  • Your spouse or common-law partner's Universal Child Care Benefit repayment
• GST/HST credit application
• Information about your residency status

What's new for 2007?

We list the major changes below, including income tax changes that have been announced but were not law at the time of printing. If they become law as proposed, they will be effective for 2007 or as of the dates indicated. For more details on these and other changes, see the areas outlined in colour.

Elections Canada – A new citizenship question on page 1 of the return lets you declare your Canadian citizenship status and be added directly to the National Register of Electors. Also, if the return is filed for a deceased person, the Canada Revenue Agency will notify Elections Canada to remove the person's name from the National Register of Electors. See Elections Canada for details.

Instalment payments – For 2008 and later years, the instalment threshold for individuals has increased. See Should you be paying your taxes by instalments? for more details.

Pension income splitting (lines 115, 116, 129, and 210) – If you and your spouse or common-law partner are deemed residents of Canada in 2007 and either of you received pension income that is eligible for the pension income amount, you may be eligible to split it for income tax purposes.

Taxable capital gains (see line 127 for details).

Other income (line 130) – Elementary and secondary school scholarships and bursaries are no longer taxable. If you received an apprenticeship incentive grant, include this amount on line 130.

Self-employment income (see lines 135 to 143 for details).

Registered retirement savings plan – The age limit for contributing to an RRSP is increased from 69 to 71. Also, after March 18, 2007, new investments have been added to the list of qualified investments. See Guide T4040, RRSPs and Other Registered Plans for Retirement, for details.

Universal Child Care Benefit repayment (see line 213 for details).

Exploration and development expenses (see line 224 for details).

Other employment expenses (see line 229 for details).

Security options deductions (see line 249 for details).

Capital gains deduction (see line 254 for details).

Northern residents deductions (see line 255 for details).

Spouse or common-law partner amount (see line 303 for details).

Amount for an eligible dependant (see line 305 for details).

Amount for children born in 1990 or later (line 367) – You can claim $2,000 for each child who is under 18 years of age at the end of the year. See line 367 for details. Also you may be able to transfer this amount to your spouse or common-law partner or to claim his or her amount. See line 326 for details.

Canada employment amount (see line 363 for details).

Public transit amount (see line 364 for details).

Children's fitness amount (line 365) – You can claim an amount for fees paid for registering your child in a prescribed program of physical activity. See line 365 for details.

Investment tax credit (see line 412 for details).

Working income tax benefit (WITB) (line 453) – You may be able to claim this new refundable tax credit that is available to low-income individuals and families who have earned income from employment or business. See line 453 for details.

Revised income tax information

On October 30, 2007, the Government of Canada announced the following proposed income tax measures that are effective January 1, 2007:

• Federal tax rate – The lowest personal income tax rate has been reduced from 15.5% to 15%.
• Basic personal amount (line 300) – The amount has increased to $9,600.
• Spouse or common-law partner amount (line 303) – The amount has increased to $9,600.
• Amount for an eligible dependant (line 305) – The amount has increased to $9,600.

Forms affected by these measures have been revised to reflect these changes.

Are you using the correct tax package?

It is important to use the correct tax package so that your provincial or territorial tax and credits can be calculated properly. To make sure you are using the correct tax package, see Is this tax package for you? and What tax package should you use if this one is not for you?.

If you are a Canadian citizen, please check the "Yes" box next to question A ("Are you a Canadian citizen?") on page 1 of your return. If you are not a Canadian citizen, please check the "No" box next to question A.

If you are a Canadian citizen, and would like to authorize the Canada Revenue Agency (CRA) to give your name, address, date of birth, and Canadian citizenship status to Elections Canada, please check the "Yes" box next to question B ("As a Canadian citizen, do you authorize the Canada Revenue Agency to give your name, address, date of birth, and citizenship to Elections Canada for the National Register of Electors?") on page 1 of your return. If you are a Canadian citizen but do not authorize the CRA to give this information to Elections Canada, please check the "No" box next to question B.

National Register of Electors (the Register)

The Register contains the name, address, and date of birth of eligible electors (Canadian citizens who are 18 years of age or older) and is used to produce electoral lists for federal elections or referendums.

If you check "Yes" to both questions

• You authorize the CRA to give only your name, address, date of birth, and Canadian citizenship status to Elections Canada to ensure that your information is up to date.
• If you are an eligible elector who is not already in the Register, Elections Canada will accept this as your request to have your information added to it.

Notes
The CRA updates the information provided to Elections Canada every month. Your authorization remains in effect until you file your next return. Therefore, if you move during this period, and you advise the CRA of your new address, the CRA will advise Elections Canada the next time information is provided.

If, during the year, you change your mind about the CRA sending your information to Elections Canada, please contact the CRA at 1-800-959-8281 to have your consent removed. However, your information will remain on the Register. To remove your information from the Register, see "Confidentiality", below.

If you check "No" to one or both questions (or do not make a choice)

• The CRA will not give any of your information to Elections Canada.
• You will not lose your right to vote.
• Elections Canada will not remove your information from the Register if it is already there.
• If there is an election or referendum, your information may not appear or be up to date on electoral lists produced from the Register and you may not receive a voter information card. In that case, you will have to take the necessary steps to correct your information or register to vote.

Deceased persons

If the return is being completed for a person who consented to provide information to Elections Canada on his or her last return but has since died, the CRA will notify Elections Canada to remove the person's name from the Register.

Confidentiality

Information on the Register will be used only for electoral purposes as permitted under the Canada Elections Act. You can write to Elections Canada requesting not to be included on the Register, or that your information not be shared with provinces, territories, municipalities, and school boards that use it to produce their electoral lists.

Contacting Elections Canada

Let our symbols be your guide…

This guide gives information on the income you need to report, and the deductions and credits you are entitled to claim, on your 2007 return. It will help you determine your tax payable and any refund you are entitled to.

Beginning with Line 101 - Employment income, we will lead you directly to the information that may apply to you by using a symbol. Before you start, it is important that you:

• read the information from At your service to Line 101 - Employment income
• determine whether, in 2007, you were a deemed resident of Canada, a non-resident of Canada, or a non-resident of Canada electing under section 217 of the Income Tax Act;
• locate the symbol (see below) that applies to your situation; and
• as you complete your return and you come to a line that applies to you, look up the corresponding line number in this guide. If your symbol appears beside the line number, the information for that line may apply to you. If your symbol does not appear, then the information does not apply to you.

Just follow the symbol that applies to you…

⬤ = deemed residents of Canada

▮ = non-residents of Canada

▲ = non-residents of Canada electing under section 217 of the Income Tax Act

Is this tax package for you?

Use this tax package if any of the following applies to you:

If this tax package is not for you, see What tax package should you use if this one is not for you?.

At your service

What if you need help?

In this guide, we use plain language to explain the most common tax situations. If you need more help after reading this guide, you can contact us (see Contacting us) or use our other services.

Internet services

General information, forms, and publications are accessible by topic and by taxpayer group in our Web site. Below is a list of the most popular topics and their associated Web site addresses:

My Account

My Account is a secure online service that gives you the convenience and flexibility of viewing and managing your personalized information. For more information, visit our My Account page or see Pamphlet RC4059, My Account for individuals.

Getting personal tax information

The personal information that you provide on your income tax forms is collected under the authority of the federal, provincial, and territorial income tax acts and will be used to administer and enforce these acts and their regulations. For more information, refer to Personal Information Bank Number CRA/P-PU-005 at the Info Source Web site or in the Info Source book, or contact the International Tax Services Office.

Your personal information is confidential. However, you can authorize someone (such as your spouse or common-law partner) to represent you to discuss your file. See "Representatives" below. In certain cases, we give some of your information to other government bodies to administer the law. In all cases, we follow strict procedures before giving your information to anyone.

If you call us and ask for personal tax information, we will ask you to identify yourself and give information about the contents of your return to protect this information. If you call before May 1, use your return for 2006. After April 30, use your return for 2007.

Representatives

You can authorize a representative (such as your spouse or common-law partner, tax preparer, or accountant) to get information on your tax matters and submit or provide information on your behalf. We will accept information from and/or provide information to your representative only after we are satisfied that you have authorized us to do so either through My Account or in writing. Your authorization will stay in effect until you cancel it, it reaches the expiry date you choose, or we receive notification of your death.

If you were the legal representative of a deceased person, see Guide T4011, Preparing Returns for Deceased Persons, to know what documents are required.

For more information, visit our My Accout page or see Form T1013, Authorizing or Cancelling a Reprensentative.

T.I.P.S.

For personal and general tax information by telephone, you can use T.I.P.S. This service is available for callers within Canada and the United States.

Contacting us

See International Tax Services Office for the address, telephone numbers, and fax number of the International Tax Services Office.

Our goal is to respond to your call within two minutes in the official language of your choice. However, you may have difficulty reaching us during peak periods.

In-person appointments – If we cannot resolve your enquiry by telephone, you can meet with an agent in person at a tax services office. Call us, and an agent can make an appointment for you.

By fax – You can send us correspondence by fax. However, because of the nature of fax services, we are not responsible for misdirected, incomplete, or illegible documents.

Publications

Throughout this guide, we mention forms, pamphlets, interpretation bulletins, information circulars, and other guides that give more details on specific tax topics.

You can get most of our publications, by visiting our Forms and publications page or by calling 1-800-959-2221  (from Canada or the U.S.) from 8:15 a.m. to 5:00 p.m.. If you are outside Canada and the U.S., call the International Tax Services Office.

You can also get the General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada from any Canadian embassy, high commission, or consulate.

General information

Determining your residency status

Were you a non-resident of Canada in 2007?

You are a non-resident of Canada for tax purposes throughout any period in which you do not have significant residential ties (as defined in the following section) in Canada and you are not a deemed resident of Canada.

What income should you report? – Report your income from Canadian sources such as the taxable part of your scholarships, fellowships, bursaries, net research grants, income from a business, net partnership income (limited or non-active partners only), and taxable capital gains from disposing of taxable Canadian property, as indicated under the income lines applicable to non-residents of Canada in the guide.

What are residential ties?

Significant residential ties almost always include a home in Canada, a spouse or common law partner, and dependants who stayed in Canada while you were living outside Canada. Other ties that may contribute to having significant ties include a Canadian driver’s licence, Canadian bank accounts or credit cards, provincial or territorial hospitalization insurance coverage, personal property, and social ties in Canada.

For details on residential ties, see Interpretation Bulletin IT-221, Determination of an Individual’s Residence Status, or contact the International Tax Services Office.

Were you a non-resident of Canada in 2007 who wants to elect under section 217?

Under section 217 of the Income Tax Act, you can choose to report certain types of Canadian-source income on a Canadian return and pay tax on that income using an alternate taxing method. Choosing to do this is called "electing under section 217".

For detailed information, including the types of income to which section 217 applies, see the chapter called Electing under section 217.

Were you a non-resident of Canada in 2007 who wants to elect under section 216.1?

Under section 216.1 of the Income Tax Act, if you are an actor who is a non-resident of Canada, you can choose to report amounts paid, credited, or provided as a benefit to you for film and video acting services rendered in Canada on a Canadian return and pay tax on that income using an alternate taxing method. Choosing to do this is called "electing under section 216.1".

For detailed information, see the chapter called Electing under section 216.1.

Were you a deemed non-resident of Canada in 2007?

You may be a deemed non-resident of Canada for tax purposes if you were a resident of Canada in 2007, and, under a tax treaty, you were considered to be a resident of another country. If this is the case, the same rules apply to you as to a non-resident of Canada (including the way you complete your return).

Were you a deemed resident of Canada in 2007?

You were a deemed resident of Canada for tax purposes if you did not have significant residential ties in Canada, but you stayed here for 183 days or more in 2007 and, under a tax treaty, you were not considered a resident of another country.

You were also a deemed resident of Canada if you lived outside Canada during 2007, you did not have significant residential ties in Canada, and you were:

• a member of the Canadian Forces at any time in 2007;
• a member of the Canadian Forces overseas school staff and you choose to file a return as a deemed resident of Canada (if you left Canada during 2007, see the next section called Were you a member of the overseas Canadian Forces school staff who left Canada in 2007? );
• a federal or provincial government employee and you were either resident of Canada just before being posted abroad or you received a representation allowance for 2007;
• a person working under a Canadian International Development Agency (CIDA) assistance program, if you were a resident of Canada at any time during the three-month period just before you began your duties abroad;
• a person who, under a tax treaty, agreement or convention between Canada and another country, is exempt from tax on 90% or more of your income from all sources in your new country of residence because of your relationship to a resident (including a deemed resident) of Canada; or
• a dependent child of one of the first four persons described above and your net world income in 2007 was not more than the basic personal amount (see line 300) in Canadian dollars.

Note
If you lived with and were the spouse or common-law partner of one of the first four persons described above at any time during 2007, and you ceased to be a resident of Canada before February 24, 1998, you are a deemed resident of Canada unless you choose not to be. For details, contact the International Tax Services Office.

What income should you report? – Report your 2007 world income. World income is income from all sources both inside and outside Canada.

Were you a member of the overseas Canadian Forces school staff who left Canada in 2007?

If so, and you severed your residential ties, you became a non-resident of Canada. If this is your situation, you should use the 2007 tax package for the province or territory where you lived just before you left Canada. You should also see the Guide T4056, Emigrants and Income Tax , for the special rules that apply to you.

However, you can file as a deemed resident of Canada while you are serving abroad. If you make this choice, you should use the 2007 tax package for the province or territory where you lived just before you left Canada. In future years, you will use the tax package for non-residents and deemed residents of Canada .

Did you live in Quebec just before you left Canada?

Even though we may consider you to be a deemed resident of Canada, under Quebec law you may also be considered a deemed resident of that province. If this is the case, you may have to pay Quebec income tax while you are serving abroad.

For example, if you are a deemed resident of Canada and you were at any time in the year an agent-general, an officer or a servant of the province of Quebec and you were resident in that province immediately prior to appointment or employment by that province, you have to pay Quebec income tax. To avoid double taxation (surtax for non-residents and deemed residents of Canada plus Quebec income tax), attach a note to your federal return telling us:

• you are subject to Quebec provincial income tax;
• you are filing a Quebec provincial return; and
• you are asking for relief from the non-resident and deemed resident surtax.

For more information, contact the International Tax Services Office.

The province of Quebec also grants relief to certain taxpayers who were deemed residents of Canada and Quebec. This includes, deemed residents of Canada who are members of the Canadian Forces or at any time in the year, an ambassador, minister, high commissioner, officer or servant of Canada, and who were also deemed residents of Quebec. For more information, contact Revenu Quebec.

Before you start

Do you have to file a return?

You have to file a return for 2007 if any of the following situations applies:

• You have to pay tax for 2007.
• We sent you a request to file a return.
• You were a deemed resident of Canada at any time in the year and you and your spouse or common-law partner elected to split pension income for 2007. See lines 115 and 129 for details.
• You were a deemed resident of Canada at any time in the year and you disposed of property in 2007 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your 2006 return).
• You were a non-resident of Canada throughout 2007 and you disposed of taxable Canadian property in 2007.
• You have to repay any of your Old Age Security or Employment Insurance benefits. See line 235 for details. If you were a non-resident of Canada in 2007, you will use the Form T1136, Old Age Security Return of Income, to pay back all or part of your Old Age Security.
• You have not repaid all of the amounts you withdrew from your registered retirement savings plan (RRSP) under the Home Buyers' Plan or the Lifelong Learning Plan. For details, see Guide RC4135, Home Buyers' Plan (HBP), or Guide RC4112, Lifelong Learning Plan (LLP).
• You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2007, the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222 for details.
• You filed Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to Be Withheld, for 2007 and we approved it. If this is your situation, you have to file a return electing under section 217 of the Income Tax Act (see Form NR5 for exceptions).
• You filed Form NR6, Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent From Real Property or Receiving a Timber Royalty, for 2007 and we approved it. If this is your situation, you have to file a return electing under section 216 of the Income Tax Act.
• You filed Form T1287, Application by a non-resident of Canada (individual) for a reduction in the amount of non-resident tax required to be withheld on income earned from acting in a film or video production for 2007 and we approved it. If this is your situation, you have to file a return electing under section 216.1 of the Income Tax Act.

Even if none of these requirements applies, you still may want to file a return if any of the following situations applies:

• You want to claim a refund.
• You want to apply for the GST/HST credit. For example, you may be eligible if you turn 19 before April 2009, and you are a deemed resident of Canada.
• You or your spouse or common-law partner want to begin or continue receiving Canada Child Tax Benefit payments.
• You have incurred a non-capital loss (see line 236) in 2007 that you want to be able to apply in other years.
• You want to carry forward or transfer the unused part of your tuition, education, and textbook amounts (see lines 323, 324, and 326).
• You want to report income for which you could contribute to an RRSP, in order to keep your RRSP deduction limit for future years up to date.
• You want to carry forward the unused investment tax credit on expenditures you incurred during the current year (see line 412).

What date is your return for 2007 due?

Generally, your return for 2007 has to be filed on or before April 30, 2008.

Note
If you file your return after April 30, 2008, your GST/HST credit, Canada Child Tax Benefit, and Old Age Security benefit payments may be delayed.

Self-employed persons – If you or your spouse or common-law partner carried on a business in 2007 (other than a business whose expenditures are primarily in connection with a tax shelter), your return for 2007 has to be filed on or before June 15, 2008. However, if you have a balance owing for 2007, you still have to pay it on or before April 30, 2008. For details on how to make your payment, see line 485.

Non-residents electing under section 217 – For information on when your return is due, see When is your section 217 return due?.

Non-residents electing under section 216.1 – For information on when your return is due, see When is your section 216.1 return due?.

Deceased persons

If you are the legal representative (the executor, administrator, or liquidator) of the estate of an individual who died in 2007, you may have to file a return for 2007 for that individual. Get Guide T4011, Preparing Returns for Deceased Persons, and Information Sheet RC4111, What to do following a death, for details about your filing requirements and options.

Note
If you received income in 2007 for a person who died in 2006 or earlier, do not file an individual return for 2007 for that income on behalf of that person. However, you may have to file a T3 Trust Income Tax and Information Return for the estate.

Exception to due date of your return

When a due date falls on a Saturday, Sunday, or a holiday recognized by the CRA, we consider your return to be filed on time or your payment to be paid on time if we receive it or it is postmarked on the next business day. For more information, visit our Important dates page.

What penalties and interest do we charge?

Penalties

If you owe tax for 2007 and do not file your return for 2007 within the dates we specify under "What date is your return for 2007 due?" in the previous section, we will charge you a late-filing penalty. The penalty is 5% of your 2007 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on a return for any of the three previous years.

Tax Tip
Even if you cannot pay the full amount you owe on or before April 30, 2008, you can avoid the late-filing penalty by filing your return on time.

We may waive or cancel this penalty (as well as any interest that may apply; see the next section) if you file your return late because of circumstances beyond your control. If this happens, complete Form RC4288, Request for Taxpayer Relief, and mail it to us. Only requests relating to tax years ending in any of the 10 calendar years before the year you make the request will be considered. For example, a request made in 2008 must relate to the 1998 or a later tax year to be considered. For details, see Information Circular IC07-1, Taxpayer Relief Provisions.

You may have to pay a penalty for any amounts you fail to report on your return for 2007. If you also failed to report an amount on your return for 2004, 2005, or 2006, you may have to pay another penalty. However, if you tell us about an amount you failed to report, we may waive these penalties. See What is a voluntary disclosure?.

Non-residents electing under section 217 – If you file your 2007 section 217 return after June 30, 2008, your election is not valid. If the correct amount of non-resident tax was not withheld, we will send you a non-resident tax assessment.

Non-residents electing under section 216.1 – If you file your section 216.1 return after the due date, your election is not valid. The 23% non-resident withholding tax will be considered the final tax liability.

Interest

If you have a balance owing for 2007, we charge compound daily interest starting May 1, 2008, on any unpaid amounts owing for 2007. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties indicated in the previous section, starting the day after your return is due.

Social insurance number (SIN)

Your SIN is the authorized number for income tax purposes under section 237 of the Income Tax Act and is used under certain federal programs. You have to give it to anyone who prepares an information slip (such as a T3, T4, or T5 slip) for you. Each time you do not give it when you are supposed to, you may have to pay a $100 penalty. You also have to give it to us when you ask us for personal tax information. Check your slips. If your SIN is missing or is incorrect, advise the slip preparer.

If you have requested, but not yet received a SIN and the filing deadline is near, file your return without your SIN to avoid the late filing penalty and interest charges, if any. Attach a note to your return to let us know. We will assign you a temporary tax number (TTN). Please keep a record of that number in case we need to contact you.

If you are not eligible for a SIN, complete Form T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents. Do not complete this form if you already have a SIN, individual tax number (ITN), or temporary tax number (TTN).

Your SIN card is not a piece of identification, and it should be kept in a safe place. For more information, or to get an application for a SIN, you can visit the Service Canada Web site or call 1-800-622-6232 .

If you are outside Canada, you can write to:

Service Canada,
Social Insurance Registration Office,
P.O. Box 7000, Bathurst NB
E2A 4T1,
CANADA,

or call 506-548-7961.

Canada Child Tax Benefit (CCTB) and Child Disability Benefit (CDB)

If you are a deemed resident of Canada or if you are the spouse or common-law partner of a deemed resident of Canada, and you are responsible for the care and upbringing of a child who is under 18 years of age, you can apply for the CCTB for that child. To do so, submit a completed Form RC66, Canada Child Benefits Application, along with any other documents required, as soon as possible after the child is born or begins to live with you. If you are a permanent resident, temporary resident, or protected person (refugee) as defined in the Immigration and Refugee Protection Act, you should apply as soon as possible after you and your child arrive in Canada.

In addition to the CCTB, you can also receive a CDB if your child meets the criteria for the disability amount and we have approved Form T2201, Disability Tax Credit Certificate, for the child.

The CCTB and CDB are based on the net income (line 236) shown on your return and, if applicable, your spouse or common-law partner's return minus any amount you or your spouse or common-law partner reported on line 117.

If you or your spouse or common-law partner deducted a Universal Child Care Benefit repayment (on line 213), we will add this amount to your or your spouse's or common-law partner's net world income. Therefore, to qualify for these benefits, you both have to file a return every year, even if there is no income to report.

However, if you are the non-resident spouse or common-law partner of a deemed resident of Canada, you will have to file Form CTB9, Canada Child Tax Benefit Statement of Income, instead of filing a return for purposes of the CCTB.

To view your CCTB account, visit our My Account page. For more information regarding CCTB or CDB, visit our Child and Family Benefits page, see Pamphlet T4114, Canada Child Benefits, or call us at 1-800-387-1193. If you are outside of Canada, call the International Tax Services Office.

Universal Child Care Benefit (UCCB)

If you are responsible for the care of a child under six years of age, you may be eligible to receive $100 per month for each qualified dependant.

You do not need to apply for the UCCB if either of the following situations applies to you. The benefit will be sent to you automatically if:

• you already receive the CCTB for your children under six years of age; or
• you have applied for the CCTB for your children under six years of age and do not receive it (perhaps because your family income is too high).

If neither of these situations applies to you, then you will have to apply for the UCCB by completing Form RC66, Canada Child Benefits Application.

While the UCCB is taxable (on line 117 of the return) in the hands of the spouse or common-law partner with the lower net world income, it will not be taken into account in calculating your GST/HST credit, your CCTB payments, social benefits repayment (line 235), the refundable medical expense supplement (line 452), or the working income tax benefit (line 453).

To view your UCCB account, visit our My Account page. For more information about the UCCB, visit our Universal Child Care benefit page.

What tax package should you use if this one is not for you?

• If you were a deemed resident of Canada on December 31, 2007, and you are reporting only income from a business with a permanent establishment in a province or territory of Canada, use the package for that province or territory.
• If you were a deemed resident of Canada and you returned to Canada to live in 2007, use the tax package for the province or territory where you lived on December 31, 2007.
• If you were a non-resident of Canada throughout 2007 and you are reporting only income from employment in Canada, or from a business or partnership with a permanent establishment in Canada, use the tax package for the province or territory where you earned the income. You should also see Guide T4058, Non-Residents and Income Tax, for the special rules that apply.
  
  If you are also reporting other types of Canadian-source income (such as taxable scholarships, fellowships, bursaries, research grants, or capital gains from disposing of taxable Canadian property), you will need Form T2203, Provincial and Territorial Taxes for 2007 - Multiple Jurisdictions, to calculate your tax payable.
   
• If you were a non-resident of Canada during 2007 and you received rental income from real property located in Canada or timber royalties on a timber resource property or a timber limit in Canada, get Guide T4144, Income Tax Guide for Electing Under Section 216.
• If you resided outside Canada on December 31, 2007, but you maintained significant residential ties in Canada, generally we consider you to be a factual resident of Canada. Use the tax package for the province or territory where you kept your significant residential ties. However, this may not apply if you were a factual resident who, under a tax treaty, is considered to be a resident of another country. For details, see the section called Were you a deemed non-resident of Canada in 2007?.
• If you were a newcomer to Canada in 2007, use the tax package for the province or territory where you resided on December 31, 2007. You should also see Pamphlet T4055, Newcomers to Canada, for the special rules that apply.
• If you emigrated from Canada during 2007, use the tax package for the province or territory where you resided on the day you left Canada. You should also see Guide T4056, Emigrants and Income Tax, for the special rules that apply.

How can you get the tax package you need?

You should have received the tax package you need based on our records. However, if after reading the information in the previous section, you cannot use this tax package, see Publications to find out how you can get the one you need.

Regardless of which tax package you use, send your return to the International Tax Services Office. If you provide services in the film and television industry, send your income tax return to the Film Services Unit that serves the province or territory where the services were rendered. You will find the address of the offices on our Film Industry Services page.

Getting started

Gather all the documents needed to complete your return. This includes your information slips (such as NR4, T3, T4, T4A, T4A-NR and T5 slips) and receipts for any deductions or credits you plan to claim. As you complete your return, when you come to a line that applies to you, you can look it up in this guide, or see the back of your information slips for more instructions. For more information, see the following section What do you include with your return and what records do you keep?.

Send your return to the International Tax Services Office. If you are preparing other people's returns, mail or deliver each person's return in a separate envelope. However, if you are filing returns for more than one year for the same person, put them all in one envelope.

Note
If you have a farming business and you are participating in the AgriStability and AgriInvest Programs, use the envelope contained in Guide RC4060, Farming Income and the AgriStability and AgriInvest Programs Guide, or Guide RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide.

What do you include with your return and what records do you keep?

Include one copy of each of your information slips with your return. Make sure you attach to your return your Schedule 1. The explanations in the guide and the return, schedules, or forms will tell you when to attach other supporting documents, such as certificates, forms, schedules, or official receipts.

If a tax professional will be preparing or sending us your return, show him or her your label sheet and all of your supporting documents, such as your information slips, receipts, Notice of Assessment from last year, and instalment payments summary (on Form INNS1 or Form INNS2).

If you make a claim without the required receipt, certificate, schedule, or form, we may disallow your claim. It could also delay the processing of your return.

Even if you do not have to attach certain supporting documents to your return, keep them in case we select your return for review. You should keep your supporting documents for six years.

You should also keep a copy of your return for 2007, the related Notice of Assessment, and any Notice of Reassessment. These can help you complete your return for 2008. For example, your notice for 2007 will tell you:

• your RRSP deduction limit for 2008;
• your unused RRSP contributions for 2008;
• your capital and non-capital loss balances; and
• your tuition, education, and textbook amounts carry-forward balance (see line 323).

Non-residents and non-residents electing under section 217 – You need to include a completed Schedule A, Statement of World Income and Schedule B, Allowable Amount of Non-Refundable Tax Credits . If you are filing under section 217, you also need to include Schedule C, Electing Under Section 217 of the Income Tax Act.

What if you are missing information?

If you have to file a return for 2007, make sure you file it on time even if some slips or receipts are missing. You are responsible for reporting your income (see Determining your residency status) to avoid possible interest and/or penalties that may be charged. If you know that you will not be able to get a slip by the due date, attach a note to your return stating the payer's name and address, the type of income involved, and what you are doing to get the slip. Use any stubs you may have to calculate the income to report and any related deductions and credits you can claim. Attach the stubs to your return.

Note
You should have received most of your slips and receipts by the end of February. However, T3, T5013, and T5013A slips do not have to be sent before the end of March.

Electing under section 217

Information concerning this election can be found in the chapter called Electing under section 217.

Electing under section 216.1

Information concerning this election can be found in the chapter called Electing under section 216.1.

After you file

What happens to your return after we receive it?

Each year we conduct a number of review activities that promote awareness of and compliance with the laws we administer. These reviews are an important part of the compliance activities we undertake to maintain the integrity of, and Canadians' confidence in, the Canadian tax system.

Our various examination programs take place at different periods during the year. Therefore, if you move, it is very important to make your change of address with us as soon as possible to allow us to communicate with you. If you plan to be away for an extended period of time, you should complete Form T1013, Authorizing or Cancelling a Representative, to authorize a representative to act on your behalf.

When we receive your return, we usually review it based on the information you provided and send you a Notice of Assessment based on that review. However, we may select your return for a more detailed review before we assess it. If so, and we ask you to give us documents to verify the deductions or credits you claimed, your assessment may be delayed. We can also carry out a more detailed review after your return has been assessed to verify the income reported and the deductions or credits claimed.

When can you expect your refund?

We usually process returns in four to six weeks. However, we start to process returns in mid-February, so do not call before mid-March, even if you filed your return in January. If you filed your return on or before April 15, wait four weeks before you call. If you filed your return after April 15, wait six weeks before you call.

To find out about your 2007 refund, visit My Account or use Telerefund, one of our T.I.P.S. services.

When will we pay interest?

We will pay you compound daily interest on your tax refund for 2007. The calculation will start on whichever of the following three dates is latest:

• May 31, 2008;
• the 31st day after you file your return; or
• the day after you overpaid your taxes.

Income tax problems?

Our Enquiries staff is committed to resolving your tax-related problems by giving accurate, timely, courteous, fair, and confidential answers to your questions. However, if a problem cannot be resolved, you can contact the Problem Resolution Program of the International Tax Services Office.

Our goal under this program is to acknowledge receipt within 2 working days and to resolve the problem within 15 working days. If we cannot do so (for example, if your situation is complex), a representative will contact you to confirm that we are working on the problem, to discuss it further (if necessary), and let you know when we expect to resolve it.

What should you do if you disagree?

If you disagree with your assessment or reassessment, contact the International Tax Services Office for more information. If you still disagree, you can make a formal objection by visiting My Account, or by sending a completed Form T400A, Objection – Income Tax Act, or a signed letter to the:

Chief of Appeals
Sudbury Tax Centre
1050 Notre Dame Avenue
Sudbury ON  P3A 5C1
CANADA

Send your form or letter on or before whichever of the following two dates is later:

• one year after the due date for the return; or
• 90 days after the date of the Notice of Assessment or Notice of Reassessment.

Taxpayer Bill of Rights, Taxpayers' Ombudsman, and CRA – Service Complaints Program

A Taxpayer Bill of Rights, a Taxpayers' Ombudsman and a Service Complaints program have been introduced to ensure that taxpayers are treated fairly, equitably and with respect. For more information, visit our About the Taxpayer Bill of Rights; Taxpayers' Ombudsman; or CRA – Service Complaints Program pages.

How do you change a return?

If you need to make a change to any return you have sent us, do not file another return for that year. You should wait until you receive your Notice of Assessment before requesting any change to a return that has not been processed. Make your request by sending the following to the International Tax Services Office:

• a completed Form T1-ADJ, T1 Adjustment Request, or a signed letter providing the details of your request (including the years of the returns you want us to change), your social insurance number, temporary tax number, or your individual tax number, your address, and a telephone number where we can reach you during the day; and
• supporting documents for the changes you want to make and, if you have not sent them to us before, supporting documents for your original claim.

Note
Send your Form T1-ADJ or letter separately from your return for 2007.

Only requests relating to tax years ending in any of the 10 calendar years before the year you make the request will be considered. For example, a request made in 2008 must relate to the 1998 or a later tax year to be considered.

It usually takes eight weeks before we complete the adjustment and mail you a Notice of Reassessment.

Can you file a return to claim a refund for a previous year?

We will only consider a request relating to a refund for a previous tax year return that you are filing late (other than to make an election under sections 217 and 216.1) if the return is for a tax year ending in any of the 10 calendar years before the year you make the request. For example, a request made in 2008 must relate to the 1998 or a later tax year to be considered.

If you are filing a return for a year before 2007, make sure you attach receipts for all the deductions or credits you are claiming.

What is a voluntary disclosure?

Maybe you should have filed a return for a previous year (see Do you have to file a return?) but you did not, or you sent us an incorrect return. If so, you can voluntarily file or correct that return under the Voluntary Disclosures Program, and pay only the taxes owing (plus interest) without penalty.

Note
This program does not apply to any return for which we have started a review.

For more details, and to see if your disclosure qualifies for this program, see Information Circular IC00-1, Voluntary Disclosures Program, or call the Voluntary Disclosures Program officer in the Enforcement and Disclosures Directorate of your tax services office or the International Tax Services Office. If you wish, you can discuss your situation first on a no-name basis.

Be sure to indicate clearly, on any disclosure you make, that you are submitting information under the Voluntary Disclosures Program.

What should you do if you move?

If you move, let us know your new address as soon as possible. If you use direct deposit, you also have to advise us if you change your account at your financial institution.

Keeping us informed will ensure that you keep getting any GST/HST credit, Universal Child Care Benefit payments and Canada Child Tax Benefit payments to which you may be entitled. Otherwise, your payments may stop, whether you receive them by cheque or by direct deposit. We also need to know your new address to mail you your tax package for next year.

If you have registered for a Government of Canada ePass and have enrolled with the My Account service, you can change your address by visiting My Account. If you do not have a User ID and Password, you have to tell us your new address by phone, or in writing.

If you are writing, send your letter to the International Tax Services Office. Make sure you sign it, and include your social insurance number, temporary tax number, or your individual tax number, your new address, and the date of your move. If you are writing for other people, including your spouse or common-law partner, include their social insurance number, temporary tax number, or individual tax number, and have each of them sign the letter authorizing the change to his or her records.

Note
Because an individual's personal information is confidential, generally we will not provide a change of address to other government departments or Crown corporations such as Canada Post. Similarly, they do not provide such information to us.

Should you be paying your taxes by instalments?

Under proposed legislation, for 2008 and later years, the instalment threshold for individuals has increased to $3,000 ($1,800 if you were a resident of Quebec).

You may have to pay your taxes by instalments if not enough income tax is withheld from your income. To find out if you have to pay your taxes for 2008 by instalments, estimate your taxes and credits for 2008 using your return for 2007. Enter those amounts in the chart on the Federal Worksheet. The chart contains the most common factors to consider.

If our records show that you may have to pay your taxes by instalments, we will send you an Instalment Reminder in advance, showing the amount we suggest you pay and the date the payment is due.

For more information about instalment payments or instalment interest charges, see Pamphlet P110, Paying Your Income Tax by Instalments.

Identification

Follow the instructions on the return to complete this area. Incomplete or incorrect information may delay the processing of your return and any refund, credit, or benefit, such as any GST/HST credit and Canada Child Tax Benefit payments you may be entitled to receive.

Non-residents electing under section 217 – At the top of page 1 of your return, write "Section 217".

Non-residents electing under section 216.1 – At the top of page 1 of your return, write "Actor’s Election".

Personal label

If you have a personal label, attach it to your return. If your name, address, social insurance number (SIN), temporary tax number (TTN), or your individual tax number (ITN), or your spouse or common-law partner's SIN, TTN, or ITN, is incorrect, put a line through the wrong information, and print your changes clearly on the label.

We may modify part of your address to meet Canada Post's requirements. Therefore, the address on your label in your tax package, your Notice of Assessment, or other correspondence we send you may be different from the one you include on your return.

Information about your residence

On the first line, "Other" has already been entered for you as your province or territory of residence on December 31, 2007.

On the second line, enter your country of residence on December 31, 2007.

On the third line, if you were self-employed in 2007, enter the province or territory where you had a permanent business establishment. Otherwise, enter "other".

Marital status

Check the box that applied to your status on December 31, 2007. Check "Married" if you had a spouse (see below), or "Living common-law" if you had a common-law partner (see below). You still have a spouse or common-law partner if you were living apart for reasons other than a breakdown in your relationship. Check one of the other boxes only if neither of the first two applied.

Spouse

This applies only to a person to whom you are legally married.

Common-law partner

This applies to a person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship. Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than a person described in b) or c) earlier in this section) will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.

Reference to "12 continuous months" in this definition includes any period that you were separated for less than 90 days because of a breakdown in the relationship.

Your spouse or common-law partner's net world income

If your spouse or common-law partner was a deemed resident of Canada in 2007, your spouse or common-law partner’s net world income is the amount on line 236 of your spouse or common-law partner's return, or the amount that it would be if he or she filed a return.

If your spouse or common-law partner was a non-resident of Canada in 2007, your spouse or common-law partner’s net world income is his or her net income for 2007 from all sources both inside and outside Canada.

Enter this amount even if it is zero. We use this information to calculate the GST/HST credit and certain other credits and benefits.

Note
Even though you show this amount on your return, your spouse or common-law partner still may have to file a return for 2007.

Your spouse or common-law partner's Universal Child Care Benefit

This is the amount on line 117 of your spouse or common-law partner's return, or the amount that it would be if he or she filed a return. Although this amount is included in your spouse or common-law partner's net world income, we will subtract this amount in the calculation of certain credits and benefits.

Your spouse or common-law partner's Universal Child Care Benefit repayment

This is the amount on line 213 of your spouse or common-law partner's return, or the amount that it would be if he or she filed a return. Although this amount is deducted in the calculation of your spouse or common-law partner's net world income, we will add this amount when calculating certain credits and benefits.

Goods and services tax/harmonized sales tax (GST/HST) credit application

Deemed residents of Canada only – To receive this credit, you have to apply for it, even if you received it last year. Complete the application area on page 1 of your return for 2007. Your credit is based on your net world  income added to the net world income of your spouse or common-law partner, if you have one, minus any amount you or your spouse or common-law partner reported for Universal Child Care Benefit (on line 117), as well as the number of children you have. If you or your spouse or common-law partner deducted a Universal Child Care Benefit repayment (on line 213), we will add this amount to your or your spouse or common-law partner's net income.

Net world income is the amount on line 236 of a person's return, or the amount that it would be if the person filed a return.

Make sure you enter, in the Identification area on page 1 of your return, your marital status and, if it applies, the information concerning your spouse or common-law partner (including his or her net world income, even if it is zero). Otherwise, your application may be delayed. Either you or your spouse or common-law partner can receive the credit, but not both. No matter which one of you applies, the credit will be the same.

To view your GST/HST credit account, visit My Account. For more information, on the GST/HST credit, visit our Child and Family Benefits page, see Pamphlet RC4210, GST/HST Credit, or call 1-800-959-1953. If you are outside Canada, call the International Tax Services Office.

Information about your residency status

Complete this area on page 1 of your return. Check the box that best describes your residency status as of December 31, 2007. For more information on residency status, see Determining your residency status.

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