All residents and non-residents of Canada who have been living in the country for more than six months and have sources of income there are required to use the so-called self-assessment principle to calculate income taxes in their annual financial statements. To do this, they must complete and submit an individual tax return.
Who is required to file tax returns?
This document is submitted by everyone who:
- is obliged to pay taxes for the previous calendar year: income tax, tax on profits received or on income from property sold;
- wants to return part of the taxes paid;
- has the right to claim income tax benefits, child benefit, tax benefits for services and goods, or a guaranteed pension supplement;
- received a notification from the CRA (usually sent out in February);
- plans to divide pension savings into 2 parts with a partner or spouse;
- is obliged to partially or completely reimburse the insurance retirement benefit or the unemployment benefit;
- must contribute to the Canada Pension Plan;
- is registered as self-employed and makes insurance premiums for profit;
- wants to transfer to the new calendar year an unspent part of the tuition fee, an unused investment benefit, etc.
How to Submit a Tax Return?
Anyone who has paid taxes at least once receives special notices from the SRA every February. If you have completed and submitted your tax return in paper form, the tax office will send you a form to fill out through the postal service as well. In addition, each taxpayer can order the delivery of the declaration form to their home.
When filling out a tax return, you must provide the following information:
- full name;
- email;
- date of birth;
- marital status;
- citizenship or immigration status;
- ownership of real estate abroad in Canada;
- the total amount of profit received and its sources (residents should indicate any source of income in Canada and abroad);
- tax debts and tax refunds.
To take everything into account and avoid any mistakes, it is recommended to contact tax companies in Canada. Professional tax preparation in Canada will help you avoid CRA issues that can lead to a fine (over 100 CAD). Taxation services are provided by qualified accountants and tax lawyers who monitor legislative changes and are familiar with all the features of bureaucratic procedures.
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