Canada Revenue Agency. General Income Tax and Benefit Guide for Non- Residents and Deemed Residents of Canada

Transcription

1 f Canada Revenue Agency General Income Tax and Benefit Guide for Non- Residents and Deemed Residents of Canada 2016 L / 5013-G (E) Rev. 16

2

3 NOTE: In this publication, the text inserted between square brackets represents the regular print information. Is this guide for you? Use this guide if any of the following apply to you: You were a deemed resident of Canada (see the definition on page 24 [7] ) on December 31, For exceptions, see "Which guide and forms book should you use if this guide is not for you?" on page 44 [10]. You were a non-resident of Canada (see the definition on page 20 [6] ) throughout 2016, and you are reporting Canadiansource income other than from employment in Canada from a business with a permanent establishment in Canada, from rental income from real or immovable property located in Canada, or from timber royalties on a timber resource property or a timber limit in Canada. For more information, see Guide T4058, NON-RESIDENTS AND I NCOME T AX. 1

4 You were a non-resident of Canada (see the definition on page 22 [6] ) throughout 2016, and you are filing a return to elect under section 217 or section If this guide is not for you, see "Which guide and forms book should you use if this guide is not for you?" on page 44 [10]. Our publications and personalized correspondence are available in braille, large print, etext, or MP3 for those who have a visual impairment. Find more information at cra.gc.ca/alternate or by calling If you are outside Canada and the United States, call us at We accept collect calls by automated response. You may hear a beep and experience a normal connection delay. La version française de ce guide est intitulée GUIDE GÉNÉRAL D' IMPÔT ET DE PRESTATIONS POUR LES NON-RÉSIDENTS ET LES RÉSIDENTS RÉPUTÉS DU C ANADA

5 Table of contents Some subjects in this guide relate to a numbered line on the return. We provide information about these subjects in the same order that the lines appear on the return or schedules. To find information about other subjects, see the index on page 389 [73]. Page Is this guide for you?... 1 [2] What's new for 2016? [4] Completing your return [5] Getting started [6] What if you are missing information? [6] Determining your residency status [6] Were you a non-resident of Canada in 2016? [6] 3

6 Page Were you a deemed non-resident of Canada in 2016? [6] Were you a deemed resident of Canada in 2016? [7] Electing under section [7] What is a section 217 election? [7] Does section 217 apply to you? [7] When is your section 217 return due? [8] Completing your section 217 return [8] Electing under section [9] What is a section election? [9] When is your section return due? [9] Do you have to file a return? [9] 4

7 Page Which guide and forms book should you use if this guide is not for you? [10] Filing deadlines, penalties and interest [11] What date is your return for 2016 due? [11] What penalties and interest do we charge? [11] How to file your return [12] What do you do with your slips, receipts and other supporting documents? [12] Tax information videos [13] Can you file a return for a previous year? [13] Benefits for individuals and families [13] Goods and services tax/harmonized sales tax (GST/HST) credit [13] 5

8 Page Canada child benefit (CCB) and child disability benefit (CDB) [13] Canada child tax benefit (CCTB) [13] Universal child care benefit (UCCB) [13] Working income tax benefit (WITB) [14] Online services [14] My Account [14] MyCRA Mobile app [14] MyBenefits CRA get your information on the go! [14] Handling business taxes online [14] Electronic mailing lists [14] Electronic payments [14] 6

9 Page Direct deposit [14] Step 1 Identification and other information [15] Information about you and your spouse or common-law partner, if you have one (page 5 [1] of your return) [15] Provide information about your spouse or common-law partner [16] Elections Canada (page 7 [1] of your return) [16] Information about your residency status [17] Specified foreign property (page 9 [2] of your return) [17] Step 2 Total income [18] Calculation of total income (page 9 [2] of your return) [18] Step 3 Net income [31] Calculation of net income (page 15 [3] of your return) [31] 7

10 Page Step 4 Taxable income [40] Calculation of taxable income (page 18 [3] of your return) [40] Step 5 Federal tax and provincial or territorial credits [42] Calculation of federal tax (Schedule 1) [42] Calculation of provincial and territorial tax [62] Step 6 Refund or balance owing [63] Summary of tax and credits (page 20 [4] of your return) [63] After you file [69] Notice of assessment [69] What happens to your return after we receive it? [69] Should you be paying your taxes by instalments? [69] 8

11 Page How to change a return [69] How to register a formal dispute [70] For more information [71] What if you need help? [71] Tax Information Phone Service (TIPS) [71] Getting personal tax information [71] Taxpayer Bill of Rights [71] Forms and publications [71] What should you do if you move? [71] Representatives [71] Legal representatives [71] Service complaints [72] Reprisal complaint [72] 9

12 What's new for 2016? We list the service enhancements and major changes below, including announced income tax changes that were not law when this guide was published. If they become law as proposed, they will be effective for 2016 or as of the dates given. You will find more information about these changes throughout this guide. The service enhancements and major changes will be outlined in green and will be pointed out with the following: NEW! Our services MyBenefits CRA This is a new mobile application that lets you securely view your benefit information. See page 66 [14]. Manage online mail View your benefit notices online instead of waiting for a paper version to come by mail. See page 70 [15]. Individuals and families Canada child benefit (CCB) As of July 2016, the CCB has replaced the Canada child tax benefit (CCTB), the national child 10

13 benefit supplement (NCBS), and the universal child care benefit (UCCB). See page 60 [13]. Northern residents deductions (line 255) The basic and additional residency amounts used to calculate the northern residency deduction have both increased to $11 per day. See Form T2222, NORTHERN R ESIDENTS D EDUCTIONS. Children's arts amount (line 370) The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $250. Both will be eliminated for 2017 and later years. See page 321 [59]. Home accessibility expenses (line 398) You can claim a maximum of $10,000 for eligible expenses you incurred for work done or goods acquired for an eligible dwelling. See page 322 [59]. Family tax cut The family tax cut has been eliminated for 2016 and later years. Children's fitness tax credit (lines 458 and 459) The maximum eligible fees per child (excluding the supplement for children with 11

14 disabilities) has been reduced to $500. Both will be eliminated for 2017 and later tax years. See page 356 [66]. Eligible educator school supply tax credit (lines 468 and 469) If you were an eligible educator, you can claim an amount of up to $1,000 for eligible teaching supplies expenses. See page 360 [66]. Interest and investments Tax-free savings account (TFSA) The amount that you can contribute to your TFSA every year has been reduced to $5,500. Dividend tax credit (DTC) The rate that applies to "other than eligible dividends" has changed for 2016 and later tax years. See pages 118 and 336 [23 and 61]. Investment tax credit (line 412) Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April See page 327 [60]. Labour-sponsored funds tax credit (lines 413, 414, 411, and 419) The tax credit for the purchase of 12

15 shares of provincially or territorially registered labour-sponsored venture capital corporations has been restored to 15% for 2016 and later tax years. The tax credit for the purchase of shares of federally registered labour-sponsored venture capital corporations has decreased to 5% and will be eliminated for 2017 and later tax years. See page 329 [60]. Other changes Tax on taxable income The tax rates and income levels have changed. See Schedule 1, FEDERAL T AX. As a result of this change the donations and gifts tax credit calculation has changed. See Schedule 9, DONATIONS AND G IFTS. Split income of a child under 18 The tax rate has increased to 33%. See page 91 [19]. Sale of principal residence The sale of a principal residence must now be reported, along with any principal residence designation, on Schedule 3. See Schedule 3, CAPITAL G AINS ( OR L OSSES) IN Under proposed changes, the CRA will be able to accept a late designation in certain circumstances, but a penalty 13

16 may apply. Go to cra.gc.ca/gncy/bdgt/2016/qa11-eng.html and select question 7. Also go to cra.gc.ca/gncy/bdgt/2016/qa12-eng.html. Reassessment period Under proposed legislation, for tax years that end after October 2, 2016, the CRA may at any time reassess your income tax return if you fail to report a sale or other disposition of real estate. See the Guide T4037, CAPITAL G AINS. Completing your return This guide gives you information about the income you must report and the deductions and credits you can claim on your 2016 income tax and benefit return. Note Unless otherwise noted, all legislative references are to the I NCOME TAX A CT and the INCOME T AX R EGULATIONS. 14

17 To complete your return: Read "Getting started" on page 18 [on the next page]. Determine if, in 2016, you were a deemed resident of Canada, a non-resident of Canada, or a non-resident of Canada making an election under section 217 or section of the Income Tax Act. Read "Were you a non-resident of Canada in 2016?" and other information on pages 20 to 38 [6 to 9]. Determine if you have to file. See "Do you have to file a return?" on page 39 [9]. Make sure you have the correct forms guide and book. See "Which guide and forms book should you use if this guide is not for you?" on page 44 [10]. Make sure you file on time. See "Filing deadlines, penalties and interest" on page 47 [11]. Read "What's new for 2016?" section on page 10 [4] and other information on pages 10 to 38. Locate the symbol (see below) that applies to your situation. 15

18 Follow the instructions in this guide for each line on the return that applies to you. If your symbol appears beside the line number, the information for that line may apply to you. If your symbol does not appear, the information does not apply to you. Look on the back of your information slips to find instructions on where to report an amount. Note If your situation is the same as last year, you may want to use your 2015 income tax and benefit return to help you complete this year's return. The return has been divided into six steps. Complete each step before going on to the next. Step 1 Identification and other information Provide information about yourself and your spouse or common-law partner, as well as other information required to process your return. Step 2 Total income Determine your total income at line

19 Step 3 Net income To determine your net income at line 236, claim any deductions that apply to you. Step 4 Taxable income To determine your taxable income at line 260; claim any deductions that apply to you. Step 5 Federal and provincial or territorial tax - To calculate your federal tax, complete Schedule 1, FEDERAL T AX. To calculate your provincial or territorial tax, complete Form T2203, P ROVINCIAL AND T ERRITORIAL T AXES FOR MULTIPLE J URISDICTIONS, if it applies. Note To calculate your tax for Quebec, you will have to file a provincial income tax return for Quebec. Step 6 Refund or balance owing To determine your refund or balance owing, calculate your total payable and claim any refundable credits that apply to you. Attach to your return only the documents (schedules, information slips, forms, or receipts) requested in the guide to support the 17

20 credits you claim and deductions you make. Keep all other supporting documents in case we ask to see them later Symbols = deemed residents of Canada = non-residents of Canada = non-residents of Canada electing under sections 217 or of the INCOME T AX A CT Getting started Gather all the documents you need to complete your return. This includes: all information slips that you should have received (such as NR4, T3, T4, T4A, T4A-NR, and T5 slips), all supporting documents for any deductions you make or credits you plan to claim; and 18

21 your most recent notice of assessment or reassessment for carryforward amounts or other amounts you may need to complete your return. As you see lines on the return that apply to you, refer to this guide or see the backs of your information slips for more instructions. What if you are missing information? If you have to file a return for 2016, file it on time (see page 47 [11] ) even if some slips or receipts are missing. You are responsible for reporting your income (see "Determining your residency status" on page 20 [6] ) to avoid possible interest and/or penalties that may be charged. If you know you will not be able to get the missing slip by the due date and if you have registered for My Account, you may be able to view your tax information slips online by going to cra.gc.ca/myaccount. Otherwise, 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. 19

22 You can use your pay stubs or statements to estimate your income and any related deductions and credits you can claim. Enter the estimated amounts on the appropriate lines of your return. Attach a copy of the pay stubs or statements to your return and keep the original documents. Note You should have received most of your slips and receipts by the end of February. However, T3 and T5013 slips do not have to be sent before the end of March. Determining your residency status Were you a non-resident of Canada in 2016? You are a non-resident of Canada for tax purposes throughout any period in which you do not have significant residential ties (see the definition in the following section) in Canada and you are not a deemed resident (see the definition on page 21 [on this page] ) of Canada. 20

23 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 that does not have a permanent establishment in Canada, net partnership income (limited or non-active partners only), and taxable capital gains from disposing of taxable Canadian property, as shown under the income lines applicable to non-residents of Canada in the guide. Other types of income are not reported but must be entered on Schedule A, STATEMENT OF W ORLD I NCOME. For more information, see Schedule A, or contact us. What are residential ties? Significant residential ties almost always include a home in Canada and a spouse or common-law partner and dependants who stayed in Canada while you were living outside Canada. Other relevant residential ties may include a Canadian driver's licence, Canadian bank accounts or credit cards, health insurance with a Canadian province or territory, personal property, and social ties in Canada. 21

24 In order to determine residence status, all of the relevant facts in each case must be considered, including residential ties with Canada and length of time, object, intention, and continuity with respect to stays in Canada and abroad. For more information about residential ties, see Income Tax Folio S5-F1-C1: DETERMINING AN I NDIVIDUAL' S R ESIDENCE S TATUS. Were you a non-resident of Canada in 2016 who wants to elect under section 217? Under section 217 of the INCOME T AX A CT, you can choose to file a Canadian return and report certain types of Canadian-source income (see page 28 [7] ). You are then "electing under section 217 of the I NCOME T AX A CT." By doing this, you may pay tax on this income using an alternative method and may receive a refund of some or all of the non-resident tax withheld. 22

25 Were you a non-resident of Canada in 2016 who wants to elect under section 216.1? Under section of the INCOME T AX A CT, if you are a non-resident actor, 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 alternative taxing method. Choosing to do this is called "electing under section " See page 36 [9]. Were you a deemed non-resident of Canada in 2016? You were a deemed non-resident of Canada in 2016 if you would have been considered a resident of Canada (or a deemed resident) but, under a tax treaty, you were considered a resident of another country. You become a deemed non-resident of Canada when your ties with the other country are such that, under the tax treaty, you would be considered a resident of that other country and not Canada. In this case, the same rules that apply to a non-resident of Canada will apply to you as a deemed non-resident (including the way you complete your return). 23

26 Were you a deemed resident of Canada in 2016? 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 2016 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 2016, you were not considered a factual resident of Canada because you did not have significant residential ties in Canada, and you were: 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 2016, see the next section called "Were you a member of the overseas Canadian Forces school staff who left Canada in 2016?"); a federal or provincial government employee and you were either a resident of Canada just before being posted abroad or you received a representation allowance for 2016; 24

27 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 member of the Canadian Forces at any time in 2016; a person who, under a tax treaty, agreement, or convention between Canada and another country, is exempt from tax in that other country on 90% or more of your income from all sources 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 earlier in this section and your net world income in 2016 was not more than the basic personal amount (see line 300) in Canadian dollars. What income should you report? Report your 2016 world income. World income is income from all sources both inside and outside Canada. 25

28 Were you a member of the overseas Canadian Forces school staff who left Canada in 2016? If you were a member of the overseas Canadian Forces school staff who left Canada in 2016 and severed residential ties, you became a non-resident of Canada. Use the 2016 guide and forms book for the province or territory where you lived just before you left Canada. See Guide T4056, EMIGRANTS AND I NCOME T AX, 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, use the 2016 guide and forms book for the province or territory where you lived just before you left Canada. In future years, you will use the guide for non-residents and deemed residents of Canada. Did you live in Quebec just before you left Canada? In addition to being considered 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. 26

29 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 a resident of that province just before your appointment or employment with that province, you must pay Quebec income tax. To avoid double taxation (surtax for nonresidents 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 us. 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. 27

30 Electing under section 217 What is a section 217 election? Canadian payers have to withhold non-resident tax on certain types of income they paid or credited to you as a non-resident of Canada. The tax withheld is usually your final tax obligation to Canada on this income and you do not have to file a Canadian tax return to report it. However, you can choose to file a Canadian return and report the types of Canadian-source income listed in the next section. You are then "electing under section 217 of the INCOME T AX A CT." By doing this, you may pay tax on this income using an alternative method and may receive a refund of some or all of the non-resident tax withheld. Does section 217 apply to you? If you filed Form NR5, APPLICATION BY A NON-RESIDENT OF C ANADA FOR A REDUCTION IN THE AMOUNT OF NON-RESIDENT TAX REQUIRED TO BE WITHHELD, for the year, and we approved it, you generally have to file a section 217 return by June 30 of the year following each year of the 28

31 period covered by the approved Form NR5. For more information, see Pamphlet T4145, ELECTING U NDER S ECTION 217 OF THE I NCOME T AX ACT. Note When approved, Form NR5 is valid for a period covering five tax years. You have the option of sending us a section 217 return for 2016 even if you did not submit Form NR5 to us if you received any of the following types of Canadian-source income (referred to as eligible section 217 income) in 2016 while you were a non-resident of Canada: old age security pension; Canada Pension Plan and Quebec Pension Plan benefits; most superannuation and pension benefits; most registered retirement savings plan payments; most pooled registered pension plans; most registered retirement income fund payments; death benefits; 29

32 employment insurance benefits; certain retiring allowances; registered supplementary unemployment benefit plan payments; most deferred profit-sharing plan payments; amounts received from a retirement compensation arrangement, or the purchase price of an interest in a retirement compensation arrangement; prescribed benefits under a government assistance program; and Auto Pact benefits. Note Interest and other investment income, rental income, and workers' compensation benefits are not eligible section 217 income and are not to be reported on this return, but must be included in your world income when you complete Schedule A, STATEMENT OF W ORLD I NCOME. 30

33 When is your section 217 return due? Your 2016 section 217 return has to be filed on or before June 30, If you send us your 2016 return after June 30, 2017, according to the I NCOME T AX A CT, your section 217 election cannot be accepted. If this is your case and the required amount of non-resident tax was withheld on your eligible section 217 income, we will consider the amount withheld to be your final tax obligation to Canada on that income. However, if the payer withheld less than the required amount of tax, we will send you an assessment for the difference. If, in addition to the eligible section 217 income, you are reporting other Canadian-source income on the return, such as a taxable capital gain from disposing of taxable Canadian property, or if you have to pay tax on employment income you are reporting, you must file your return by April 30, For more information, see "Exception to the due date of your return" on page 48 [11]. 31

34 If, in addition to the eligible section 217 income, you are reporting business income and you have to pay tax on that income, you must file the return on or before June 15, Note If you have a balance owing for 2016, you have to pay it on or before April 30, If you owe tax for 2016 and do not file your return for 2016 within the dates we specify, we will charge you a late-filing penalty. We will also charge compound daily interest starting May 1, 2017, on any unpaid amounts owing for Completing your section 217 return Before you start, gather all the documents you need to complete your return. This includes your information slips (such as your NR4 slips), receipts for any deductions or credits you plan to claim, and the following forms (found in the centre of this guide): Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada; Schedule A, Statement of World Income; 32

35 Schedule B, Allowable Amount of Non-Refundable Tax Credits; Schedule C, Electing Under Section 217 of the Income Tax Act; Schedule 1, Federal Tax; and the Federal Worksheet. Step 1 Write "Section 217" at the top of page 1 [1] of your return. Step 2 Complete the "Identification" area of the return following the instructions on page 69 [15] in this guide. Step 3 Report the following income on your return: all eligible section 217 income paid or credited to you in 2016 (see the list on page 28 [7] ); and your 2016 Canadian-source employment and business income, net Canadian partnership income if you are a limited or non-active partner, and taxable capital gains from disposing of taxable Canadian property, if applicable. 33

36 Note To determine the types of income you must report on this return if you are a non-resident making an election under section 217, follow the symbol in the "Step 2 Total income" section, which begins on page 86 [18]. Complete Part 1 of Schedule C, ELECTING U NDER S ECTION 217 OF THE I NCOME T AX A CT. Step 4 Claim only those deductions on lines 207 to 256 that apply to you. Step 5 Complete Schedule A, STATEMENT OF W ORLD I NCOME, and attach it to your return (see page 223 [42] ). Step 6 Complete Schedule 1, FEDERAL T AX, and attach it to your return. On Schedule 1: Claim the federal non-refundable tax credits on lines 300 to 349 that apply to you. 34

37 Enter your taxable income from line 260, or your net world income (Schedule A), whichever is greater, on line 40 of Schedule 1 when calculating your federal tax (see the instructions on page 222 [42] ). Complete Schedule B, ALLOWABLE A MOUNT OF N ON-REFUNDABLE T AX C REDITS. Enter the allowable amount of non-refundable tax credits on line 51 of Schedule 1. Calculate and enter the amount of surtax for non-residents of Canada and deemed residents of Canada on line 56 of Schedule 1. Complete Part 2 of Schedule C to calculate the section 217 tax adjustment for line 67 of Schedule 1 if the amount you entered on line 40 of Schedule 1 was your net world income after adjustments as entered on line 16 of your Schedule A. Step 7 Complete lines 420 to 435 on the return, if they apply to you. Step 8 On line 437 of the return, enter the non-resident tax withheld on your eligible section 217 income (from your NR4 information slips) as well as any other amounts withheld on your information slips for any other Canadian-source income that you are reporting on this return. Complete the remainder of the return. 35

38 Note Attach your information slips and a completed Schedule 1, Schedule A, and Schedule C to your return. If you make a claim without the required receipt, certificate, schedule, or form, it could delay the processing of your return. As long as you file your section 217 return on time, we will refund any taxes withheld that are more than the amounts you owe. For more information, see Pamphlet T4145, ELECTING U NDER S ECTION 217 OF THE I NCOME T AX A CT. Electing under section What is a section election? If you are a non-resident actor, a non-resident withholding tax of 23% applies to amounts paid, credited, or provided as a benefit to you for film and video acting services rendered in Canada. Generally, the non-resident withholding tax is considered your final tax obligation to Canada on that income. 36

39 However, you can choose to report this income on a Canadian income tax return for Choosing to file this is called "electing under section of the INCOME T AX A CT." By doing this, you may receive a refund of some or all of the non-resident tax withheld on this income. When is your section return due? Generally, if you choose to file a return under section 216.1, your return for 2016 has to be filed on or before April 30, If you are a self-employed individual, your return for 2016 has to be filed on or before June 15, However, if you have a balance owing for 2016, you still have to pay it on or before April 30, For more information, see "Exception to the due date of your return" on page 48 [11]. Write "ACTOR'S ELECTION" (in capital letters) at the top of page 1 [1] of your return. 37

40 Send your income tax return to the Non-resident services section at your tax services office. For more information, go to cra.gc.ca/filmservices. If you send us your return after the due date, your election will not be considered valid. The 23% non-resident withholding tax will be considered the final tax obligation to Canada on that income. Note This election does not apply to other persons employed or providing services within the movie industry, such as directors, producers, and other personnel working behind the scenes. It also does not apply to persons in other sectors of the entertainment industry, such as musical performers, ice or air show performers, stage actors or stage performers, or international speakers. Reducing tax withheld at source If you intend to elect under section 216.1, you can apply to us for a reduction in the required amount of non-resident tax withheld on amounts paid, credited, or provided as a benefit to you for film and 38

41 video acting services rendered in Canada. You have to apply before you provide the acting services in Canada. To apply, complete and send us Form T1287, APPLICATION BY A N ON- R ESIDENT OF C ANADA ( INDIVIDUAL) FOR A R EDUCTION IN THE A MOUNT OF N ON-RESIDENT T AX R EQUIRED TO BE W ITHHELD ON I NCOME E ARNED F ROM A CTING IN A F ILM OR V IDEO P RODUCTION, or Form T1288, APPLICATION BY A N ON-RESIDENT OF C ANADA ( CORPORATION) FOR A R EDUCTION IN THE A MOUNT OF N ON-RESIDENT T AX R EQUIRED TO BE W ITHHELD ON I NCOME E ARNED F ROM A CTING IN A F ILM OR V IDEO P RODUCTION. For more information, see cra.gc.ca/filmservices. Do you have to file a return? You must file a return for 2016 if: You have to pay tax for We sent you a request to file a return. You and your spouse or common-law partner elected to split pension income for See lines 115, 116, 129, and

42 You received working income tax benefit (WITB) advance payments in NEW! You were a deemed resident of Canada at any time in the year, and you disposed of capital property in 2016 (for example, if you sold real estate, your principal residence, or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed income to you or you are reporting a capital gains reserve you claimed on your 2015 return). You were a non-resident of Canada throughout 2016, and you disposed of taxable Canadian property in However, if all the gain from each disposition is exempt under a tax treaty or you have received a Certificate of Compliance in respect of the disposition where no payment of tax was required, you may not have to file a tax return. For more information, go to cra.gc.ca/nrdispositions. You have to repay all or part of your old age security or employment insurance benefits. See line 235. If you were a non-resident of Canada in 2016, you will use the T1136, OLD A GE S ECURITY R ETURN OF I NCOME, to repay all or part of your OAS. 40

43 You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers' Plan or the Lifelong Learning Plan. For more information, go to cra.gc.ca/hbp or see Guide RC4112, LIFELONG L EARNING P LAN (LLP). You have to contribute to the Canada Pension Plan (CPP). This can apply if for 2016 the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222. You are paying employment insurance premiums on selfemployment and other eligible earnings. See lines 317 and 430. You filed Form NR5, APPLICATION BY A NON-RESIDENT OF C ANADA FOR A REDUCTION IN THE AMOUNT OF NON- RESIDENT TAX REQUIRED TO BE WITHHELD, for the year, and we approved it. If this is your situation, you may have to file a return electing under section 217 of the I NCOME T AX A CT for each year of the period covered by the approved Form NR5 (see Form NR5 for exceptions). You filed Form NR6, UNDERTAKING TO F ILE AN I NCOME T AX R ETURN BY A N ON-RESIDENT R ECEIVING R ENT F ROM R EAL OR I MMOVABLE P ROPERTY OR R ECEIVING A T IMBER R OYALTY, for 2016, and we 41

44 approved it. If this is your situation, you have to file a separate return electing under section 216 of the INCOME T AX A CT. You filed Form T1287, APPLICATION BY A N ON-RESIDENT OF C ANADA ( INDIVIDUAL) FOR A R EDUCTION IN THE A MOUNT OF N ON-RESIDENT T AX R EQUIRED TO BE W ITHHELD ON I NCOME E ARNED FROM A CTING IN A F ILM OR V IDEO P RODUCTION, for 2016, and we approved it. If this is your situation, you have to file a return electing under section of the INCOME T AX A CT. Even if none of these requirements apply, you should file a return if: You want to claim a refund. You want to claim the working income tax benefit for You want to receive the goods and services tax/harmonized sales tax credit. See page 59 [13]. For example, you may be eligible if you turn 19 before April 2018, and you are a deemed resident of Canada. You or your spouse or common-law partner wants to begin or continue receiving Canada child benefit payments. 42

45 You have incurred a non-capital loss (see line 236) in 2016 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 line 323. You want to report income for which you could contribute to an RRSP and/or a pooled registered pension plan (PRPP) to keep your RRSP/PRPP deduction limit (see page 169 [32] ) for future years current. You want to carry forward the unused investment tax credit on expenditures you incurred during the current year. See line 412. Deceased persons If you are the legal representative (the executor, administrator, or liquidator) of the estate of a person who died in 2016, you may have to file a return for 2016 for that person. For more information about your filing requirements and options and to know what documents are required, see Guide T4011, PREPARING R ETURNS FOR D ECEASED P ERSONS, and Information Sheet RC4111, CANADA R EVENUE A GENCY W HAT TO DO FOLLOWING A DEATH. 43

46 Note If you received income in 2016 for a person who died in 2015 or earlier, do not file an individual return for 2016 for that income on behalf of that person. Instead, you may have to file a T3 TRUST I NCOME T AX AND I NFORMATION R ETURN for the estate. Which guide and forms book should you use if this guide is not for you? If you were a deemed resident of Canada on December 31, 2016, and you are reporting only income from a business with a permanent establishment in a province or territory of Canada, use the guide and forms book for that province or territory. If you were a deemed resident of Canada and you returned to Canada to live in 2016, use the guide and forms book for the province or territory where you lived on December 31, If you were a non-resident of Canada throughout 2016 and you are reporting only income from employment in Canada or from a business or partnership with a permanent establishment in Canada, 44

47 use the guide and forms book for the province or territory where you earned the income. Also see Guide T4058, NON-RESIDENTS AND INCOME T AX, 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 T ERRITORIAL T AXES FOR 2016 M ULTIPLE J URISDICTIONS, to calculate your tax payable. If you were a non-resident of Canada during 2016 and you received rental income from real or immovable property in Canada or timber royalties on a timber resource property or a timber limit in Canada, get Guide T4144, INCOME T AX G UIDE FOR E LECTING U NDER S ECTION 216. If you resided outside Canada on December 31, 2016, but kept significant residential ties (see the definition on page 21 [6] ) with Canada, you may be a factual resident of Canada. Use the guide and forms book for the province or territory where you kept your 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 45

48 another country. For more information, see "Were you a deemed non-resident of Canada in 2016?" on page 23 [6]. If you were a newcomer to Canada in 2016, use the guide and forms book for the province or territory where you resided on December 31, See Pamphlet T4055, NEWCOMERS TO C ANADA, for the special rules that apply. If you emigrated from Canada during 2016, use the guide and forms book for the province or territory where you resided on the day you left Canada. Go to cra.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html for the special rules that apply. How to get the tax guide and forms you need You can get a guide and a forms book for your province or territory, and most of our publications at cra.gc.ca/forms. 46

49 Filing deadlines, penalties and interest What date is your return for 2016 due? Generally, your return for 2016 has to be filed on or before April 30, Note If you do not file your return on time (see exception to the due date of your return in this section), your goods and services tax/harmonized sales tax (including any related provincial credits), Canada child benefit payments, and old age security benefit payments may be delayed or stopped. Self-employed persons If you or your spouse or common-law partner carried on a business in 2016 (other than a business whose expenditures are primarily in connection with a tax shelter), your return for 2016 has to be filed on or before June 15, However, if you have a balance owing for 2016, you have to pay it on or before April 30, For more information about how to make your payment, see line

50 Exception to the due date of your return When the due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, your return is considered on time if we receive it or it is postmarked on or before the next business day. For more information, go to cra.gc.ca/importantdates. Note Since April 30, 2017, is a Sunday, your return will be considered filed on time if we receive it on or it is postmarked on or before May 1, Non-residents electing under section 217 For information on when your section 217 return is due, see "When is your section 217 return due?" on page 31 [8]. Non-residents electing under section For information on when your section return is due, see "When is your section return due?" on page 37 [9]. 48

51 Deceased persons If you are filing for a deceased person the due date may be different. For more information, see Guide T4011, PREPARING R ETURNS FOR D ECEASED P ERSONS. What penalties and interest do we charge? Late-filing penalty If you owe tax for 2016 and do not file your return for 2016 within the dates we specify under "What date is your return for 2016 due?" in the previous section, we will charge you a late-filing penalty. The penalty is 5% of your 2016 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months. If we charged a late-filing penalty on your return for 2013, 2014, or 2015, your late-filing penalty for 2016 may be 10% of your 2016 balance owing, plus 2% of your 2016 balance owing for each full month your return is late, to a maximum of 20 months. 49

52 Tax Tip Even if you cannot pay your full balance owing on or before April 30, 2017, you can avoid the late-filing penalty by filing your return on time. Non-residents electing under section 217 If you file your 2016 section 217 return after June 30, 2017, your election is not valid. For more information, see "When is your section 217 return due?" on page 31 [8]. Non-residents electing under section If you file your section return after the due date, your election is not valid. For more information, see "When is your section 216 return due?" on page 37 [9]. Repeated failure to report income penalty If you failed to report an amount on your return for 2016 and you also failed to report an amount on your return for 2013, 2014, or 2015, you may have to pay a federal repeated failure to report income penalty. If 50

53 you did not report an amount of income of $500 or more for a tax year, it will be considered a failure to report income. The federal penalty is equal to the lesser of: 10% of the amount you failed to report on your return for 2016; and 50% of the difference between the understated tax (and/or overstated credits) related to the amount you failed to report and the amount of tax withheld related to the amount you failed to report. However, if you voluntarily tell us about an amount you failed to report, we may waive these penalties. For more information, see "What is a voluntary disclosure?" on the next page or go to cra.gc.ca/voluntarydisclosures. False statements or omissions penalty You may have to pay a penalty if you knowingly or under circumstances amounting to gross negligence have made a false statement or an omission on your 2016 return. 51

54 The penalty is equal to the greater of: $100; and 50% of the understated tax and/or the overstated credits related to the false statement or omission. However, if you voluntarily tell us about an amount you failed to report and/or credits you overstated, we may waive this penalty. For more information, see "What is a voluntary disclosure?" on page 55 [on the next page] or go to cra.gc.ca/voluntarydisclosures. Interest If you have a balance owing for 2016, we charge compound daily interest starting May 1, 2017, on any unpaid amounts owing for This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties explained in the previous sections, starting the day after your return is due. 52

55 Cancel or waive penalties or interest The CRA administers legislation, commonly called the taxpayer relief provisions, that gives the CRA discretion to cancel or waive penalties or interest when taxpayers are unable to meet their tax obligations due to circumstances beyond their control. The CRA's discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made. For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2017 must relate to a penalty for a tax year or fiscal period ending in 2007 or later. For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2017 must relate to interest that accrued in 2007 or later. 53

56 To make a request, fill out Form RC4288, REQUEST FOR T AXPAYER R ELIEF CANCEL OR W AIVE P ENALTIES OR I NTEREST. For more information about relief from penalties or interest and how to submit your request, go to cra.gc.ca/taxpayerrelief. What is a voluntary disclosure? Maybe you should have filed a return for a previous year (see "Do you have to file a return?" on page 9 [41] ) but did not, or you filed a return that was not correct. If so, you can voluntarily file or correct that return under the Voluntary Disclosures Program and pay only the tax owing (plus interest) without penalty. Note The Voluntary Disclosure Program does not apply to a return for which we have started a review. For more information and to see if your disclosure qualifies for this program, see Information Circular IC00-1, VOLUNTARY D ISCLOSURES P ROGRAM, or call us at the telephone number provided on the back 54

57 cover of this guide. If you wish, you can discuss your situation first on a no-name basis. Indicate clearly on any disclosure you make that you are giving information under the Voluntary Disclosures Program. How to file your return Regardless of which guide and forms book you use, send your return to the International and Ottawa Tax Services Office. Mail or deliver your return in the envelope provided in the centre of this guide. If you prepare your return or other people's returns, mail or deliver each person's return in a separate envelope. However, if you file returns for more than one year for the same person, put them all in one envelope. 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 provided. You can find the addresses of the offices on our website at cra.gc.ca/filmservices. 55

58 Note If you are participating in the AgriStability and AgriInvest programs, use the envelope provided in Guide RC4060 or Guide RC4408. What do you do with your slips, receipts and other supporting documents? Include one copy of each of your information slips with your return. These slips show the amount of income that was paid to you during the year and the deductions that were withheld from that income. Attach your Schedule 1, FEDERAL T AX, and if you were not a resident of Quebec on December 31, 2016, also attach your provincial or territorial Form 428 (provincial or territorial tax). Attach only the supporting documents that are requested in the guide to support a credit or deduction. If a tax professional prepares or sends us your return, show the preparer all 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). 56

59 If you make a claim without the requested supporting document, we may disallow the credit or deduction you claimed. It could also delay the processing of your return. Keep your supporting documents for six years. Even if you do not have to attach certain supporting documents to your return, keep them in case we select your return for review. We may ask for documents other than official receipts, such as cancelled cheques or bank statements, as proof of any deduction or credit you claimed. Also keep a copy of your return for 2016, the related notice of assessment, and any notice of reassessment. These can help you complete your return for For more information about your notice of assessment, see page 373 [69]. Non-residents and non-residents electing under section 217 You must attach a completed Schedule A, STATEMENT OF W ORLD I NCOME and Schedule B, ALLOWABLE A MOUNT OF N ON-REFUNDABLE T AX C REDITS. If you are filing under section 217, you must also attach a completed Schedule C, ELECTING UNDER S ECTION 217 OF THE I NCOME T AX A CT. These schedules are in the centre of this guide. 57

60 Tax information videos We have a number of tax information videos for individuals on topics such as the income tax and benefit return, the Canadian tax system, and tax measures for persons with disabilities. To watch our videos, go to cra.gc.ca/videogallery. Can you file a return for a previous year? We will consider a request for 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) only if the return is for a tax year ending in any of the 10 calendar years before the year in which you make the request. For example, a request made in 2017 must relate to the 2007 or a later tax year to be considered. If you are filing a return for a year before 2016, attach receipts for all the deductions or credits you are claiming. 58

61 Benefits for individuals and families Make sure you file your return on time to continue receiving your benefits and credits you don't want them to be delayed or stopped. Goods and services tax/harmonized sales tax (GST/HST) credit Deemed residents of Canada only When you file your return, the CRA will determine your eligibility and tell you if you are entitled to receive the GST/HST credit and any related provincial credits. In the appropriate section on pages 1 to 6 [1] of your return, indicate your marital status and, if it applies, enter the information about your spouse or common-law partner (including his or her net world income, even if it is zero). Either you or your spouse or common-law partner may receive the credit, but not both of you. The credit will be paid to the person whose return is assessed first. For more information, go to cra.gc.ca/benefits, see Guide RC4210, GST/HST CREDIT, or call us at If you are outside 59