PR Card Renewal: Tax Assessment

I guess the answer is on the same page.

If I had to decide this for myself, I probably would include them with the explanation.

dpenabill, I am not sure that your reasoning about "you have to pay tax" applies to this case.

ski wrote: To me it is sort of beyond doubt that "you have to pay" means outstanding balance.

That is NOT how it works.

I would suggest discussing this with an "accountant" but like immigration consultants, there are accounts and there are accountants.

Indeed, I have the sense (given that both of you seem to be on the same, wrong page regarding this) that just as there are too many not-so-reliable consultants providing not-so-good immigration and citizenship advice, that there is a community of not-so-reliable tax advisers providing not-so-good advice as well.

Basically it comes down to this: If you are working in Canada, if you have an income in Canada, it is almost certain you are obligated to file a tax return.

In particular, if an individual is on a payroll in Canada and the employer is withholding taxes, in all but some very rare instances that individual is legally obligated to file a Canadian tax return. An amount is being withheld because that individual has to pay tax for that year.

In contrast, if it really is the case that an individual on a payroll does not have to pay a tax for that year there should be NO withholding, and I understand there are forms which can be filed which will facilitate this, so the employer will not withhold taxes (for an employee who will not owe any tax for the year). But, of course, this is only for an individual who will not have to pay any tax for that year, who will owe no tax. This would be extremely rare for anyone with a regular income.

If you have been on a payroll and not filing a return, I suggest you file the returns, and do so for any year you had any significant income. If you doubt this at all, I suggest you consult with a reputable, reliable accountant/tax adviser, not just anyone who has hung a shingle or otherwise represents themselves to be a tax adviser/consultant.



In the meantime, in case you are still unclear about this:

Look at a typical 2011 Federal return. Line 435 should state what the payable tax is. If there is a positive amount entered there, the individual has to "pay a tax for 2011." (Thus is legally required to file a return.)

It is not whether there is a positive amount in line 485 that matters; it is whether there is a positive amount listed in line 435.

On line 437 that is where the individual reports the total income tax deducted by the individual's employer. This will be stated on the T4s. There are other payments/refunds/credits listed in lines 440 through 479. The total of these gets deducted from the "total payable," that is, from line 435.

You appear to be focused on the situation where the total credits (line 482) is equal to or greater than the total payable (line 435), meaning, as you say "everying that is due has been paid already."


In other words:
What has been paid already?
-- "everything that is due"

What is due?
-- the payable tax

Meaning the individual is someone who was required to pay a tax, the tax was duly withheld from payroll, and that individual is legally required to file a tax return.

Thank you. However, I just checked with the CAR  -after putting me on hold the agent confirmed that I am NOT required to file tax returns in this situation. Last year I filed tax returns for 2008 - everything was fine, I got the refund, this year I am going to file at least 2009. I know quite a number of people who do not file their tax returns because they are not required to. Cheers!