Table of Contents About the Author...v Preface... vii Chapter 1 IMMIGRATION TO CANADA...1 Skilled Immigrants (Express Entry)...2 How express entry works...2 Determine your Eligibility Federal Skilled Workers... 4 Minimum Requirements...4 Skilled work experience...4 Language ability...5 Education...5 Six selection factors...5 Proof of funds...6 Principal applicant...6 Other requirements...6 Determine your Eligibility Skilled Trades...6 Minimum requirements...6 Skilled work experience...7 Education...8 Language ability...8 Principal applicant...9 Other requirements...9 Determine your Eligibility Canadian Experience Class.. 9 Minimum requirements...9 Skilled work experience... 10 Education... 11 Language ability... 11 Principal applicant... 11 Other requirements... 12 Determine your Eligibility Provincial Nominees... 12 Language testing... 12 Quebec-selected Skilled Workers... 13
x MIGRATION TO CANADA Determine your Eligibility Quebec-selected Skilled Workers... 13 Start-up visa... 14 Determine your Eligibility Start-up visa... 14 Self-employed people... 15 Atlantic immigration pilot... 15 Caregivers... 16 Caring for children program... 16 Caring for people with high medical needs program... 16 Live-in caregiver program... 16 Immigrant investor venture capital pilot program.. 16 Family sponsorship... 17 Sponsor your spouse, partner or dependent children... 17 Who can become a sponsor?... 17 Who you can sponsor?... 18 A previous sponsorship undertaking... 20 Support payment obligations... 20 A performance bond... 20 Sponsorship bar for violent crime... 20 Sponsoring your spouse, common-law partner or conjugal partner... 21 If you are in a common-law relationship... 22 If you are in conjugal relationship... 22 Sponsor your parents and grandparents... 23 Canada selects sponsors... 23 Sponsor your relatives... 23 The Refugee System in Canada... 24 Tradition of humanitarian action... 24 Canadian refugee protection programs... 24 Refugee and Humanitarian Resettlement Program. 24 In-Canada Asylum Program... 25 Integration Services... 25 Travel to Canada/Citizenship... 26 Essential Documents... 26
xi Disclosure of Funds... 26 Health Documentation... 27 Other Documents You May Need... 27 Customs Declaration Card... 27 What to Declare... 28 Declare All Items... 28 Applying for Citizenship... 28 Determine your eligibility Citizenship... 28 Age... 28 Permanent resident status... 29 Time you have lived in Canada... 29 Income tax filing... 29 Intent to reside... 30 Language abilities... 30 How well you know Canada... 30 Prohibitions... 31 Chapter 2 TAX ISSUES... 33 Taxation of A Non-Resident Of Canada... 33 Income Tax Non-Resident Tax Return... 34 Income from Employment... 34 Income from Business/Professional... 34 Disposition of Capital Property... 35 Transfer of Taxable Canadian Property... 37 Capital losses... 38 Reduction of Canadian Tax... 38 Deductions... 39 Support Payments... 39 Registered Retirement Savings Plan (RRSP) Contribution... 40 Canadian Exploration and Development Expenses... 40 Employee Stock Options... 40 Amounts Exempt by Treaty or Agreement... 41 Losses... 41 Tax Credits... 41
xii MIGRATION TO CANADA Donations... 41 Student Loan Interest and Tuition... 42 Canada Pension and Employment Insurance. 42 Medical... 42 Personal Non-Refundable Tax Credits... 42 Non-Resident Withholding Tax... 42 New Non-Resident Form... 43 Expiry Date... 43 Limitation of Tax Treaty Benefits... 44 Management or Administration Fees or Charges... 44 Interest... 44 Estate or Trust Income... 45 Rent... 45 Support Payments... 45 Pensions... 45 Tax Relief... 46 Canadian Tax Relief... 46 Reduction of Tax on Rental Income... 46 Section 217 Election... 47 Tax Treaties... 49 Foreign Tax Relief... 49 Estate Tax... 49 Offshore Trusts... 49 Chapter 3 TAX TREATIES... 51 Overview... 51 Dual Residence Status... 52 Tie-Breaker Rules... 52 Types Of Income... 54 Business Income... 54 Rental Income... 55 Dividends... 55 Interest... 55 Royalties... 56 Capital Gains... 56 Independent Personal Services (Self-Employed)... 56
xiii Income from Employment... 56 Pensions... 57 Miscellaneous... 57 Double Taxation... 57 Special Provisions... 57 Tax Treaty Withholding Rates... 59 Chapter 4 IMMIGRATION TAX ISSUES... 65 Timing... 65 Date Of Arrival... 65 Capital Property... 66 Tax Return Year Of Immigration... 68 Timing... 68 Offshore Investments... 68 Offshore Trusts... 68 Immigration Trusts for Individuals... 69 Granny Trusts... 69 Testamentary Offshore Trust... 70 Exempt Foreign Trust... 70 Other Trusts... 70 Foreign Accrual Property Income (FAPI)... 70 Offshore Investment Funds... 71 Foreign Asset Reporting Requirements... 72 Foreign Property... 72 Foreign Affiliates... 74 Transfer and Loans to Foreign Trusts... 74 Distributions from Foreign Trusts... 74 Exception for First-Year Residents of Canada... 75 Dual Resident Status... 75 What if the Returns Aren t Filed?... 75 Addition of a Due Diligence Test... 75 March 21st, 2013 Federal Budget... 76 The Panama Papers... 76 The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)... 77 Tax Information Exchange Agreements (TIEA)... 77
xiv MIGRATION TO CANADA Foreign Account Tax Compliance Act (FATCA)... 78 Improving Tax Compliance... 79 Cracking Down on Tax Evasion and Combating Tax Avoidance... 79 Chapter 5 RESIDENT OF CANADA (for Income Tax Purposes)... 81 General Comments... 81 Factual Residence... 82 Establishing Resident Status... 83 ITF S5-F1-C1... 83 Residential Ties with Canada... 83 Primary Ties with Canada... 84 Dwelling... 84 Spouse and Dependents... 84 Secondary Residential Ties... 84 When Does Residency Begin?... 86 NR74, Determination of Residency Status... 86 Deemed Residence... 86 Sojourners... 87 Chapter 6 YOUR FIRST TAX RETURN... 89 Are You a Resident of Canada?... 89 What are Residential Ties?... 89 Canada s Tax System... 90 Compliance... 90 The Underground Economy... 90 Social Insurance Number... 91 Canada Child Benefit (CCB) and Child Disability Benefit (CDB)... 92 Property you owned before you arrived in Canada... 92 Do You Have to File a Tax Return?... 93 Which Tax Package Should You Use?... 93 What Date is Your Canadian Tax Return Due?... 93 Self-employed Persons... 93 Completing Your Tax Return... 93 Identification... 94 Example... 94
xv Information About Your Spouse or Common-law Partner... 94 Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit Application... 94 Income... 95 Deemed Acquisitions... 96 Deductions... 96 Registered Retirement Savings Plan Contributions. 96 Pension Income Splitting... 96 Moving Expenses... 96 Support Payments... 97 Treaty-exempt Income... 97 Federal Non-refundable Tax Credits... 97 For the Part of the Year You were not a Resident of Canada... 97 For the Part of the Year You were a Resident of Canada... 98 Federal Foreign Tax Credits... 99 Provincial or Territorial Tax... 99 Provincial or Territorial Non-refundable Tax Credits... 99 Provincial or Territorial Tax Credits... 99 Representative... 99 If You Move... 100 Chapter 7 IMPORTATION OF YOUR POSSESSIONS... 103 Importation of Your Possessions... 103 Who are Considered Settlers?... 103 Who are Not Considered Settlers?... 104 Actions... 105 Goods Admissible... 105 Goods Not Admissible... 106 Ownership, Possession, and Use... 106 Listing of Goods to be Imported... 107 Shipping Goods to Canada... 108 Accounting for Goods... 109 Goods to Follow... 109
xvi MIGRATION TO CANADA Retention Period... 109 Penalty Information... 110 Requirements of Other Government Departments 110 Canadian Firearms Program... 110 Replica Firearms... 111 Explosives Fireworks and Ammunition... 111 Goods Subject to Import Controls... 111 Prohibited Consumer Products... 112 Food, Plants and Animals... 112 Prohibited Goods... 113 Public Health... 113 Health Products (drugs)... 113 Cultural Property... 114 Vehicles... 114 Restrictions on Temporary Importing... 114 Alcoholic Beverages... 115 Tobacco Products... 115 Blocked Currency... 116 Chapter 8 MISCELLANEOUS TAX RELIEF, RESIDENT OF CANADA... 117 Treaties... 117 Employment Income Prescribed International Organizations... 118 International Non-Governmental Organizations... 118 Foreign Tax Credits/Deductions... 119 Relocation... 120 Moving Expenses and Relocation Benefits... 121 Eligible Housing... 122 Home Relocation Loans... 122 Non-Accountable Allowances... 122 Benefits... 123 Counselling Services... 123 Educational Allowances For Children... 123 Group Term Life Insurance Policies: Employer-Paid Premiums... 123
xvii Housing, Board And Lodging... 124 Housing... 124 Special Circumstances That Reduce the Value of a Housing Benefit... 124 Free Or Subsidized Board and Lodging... 125 Subsidized Meals... 125 Exception To The Rules... 125 Interest-Free And Low-Interest Loans... 125 Loans Received Because Of Employment... 126 Medical Expenses... 126 Professional Membership Dues... 127 Recreational Facilities... 127 Registered Retirement Savings Plans... 127 Stock Options... 127 Tax Equalization And Protection... 128 Chapter 9 APPLYING FOR HEALTH INSURANCE IN CANADA... 129 Immunization for Children... 130 Immunization for Adults... 130 Medical Surveillance... 130 For More Information... 131 Contacts... 131 Chapter 10 CANADIAN DRIVER S LICENCE... 133 Getting a Driver s Licence... 133 Use of Seat Belts... 133 Car Seats for Children... 133 Chapter 11 Chapter 12 GOODS AND SERVICES TAX (GST)/HARMONIZED SALES TAX (HST)... 135 What is GST/HST?... 135 Who Pays GST/HST?... 136 Who Charges GST/HST?... 136 Should You Register?... 136 CANADA PENSION PLAN AND OLD AGE SECURITY... 137 Canada Pension Plan (CPP)... 137 Canada Pension Plan enhancement... 138
xviii MIGRATION TO CANADA Effects on CPP retirement pension and Post-retirement Benefit... 138 Old Age Security (OAS)... 138 Guaranteed Income Supplement... 139 Allowance... 139 Allowance for the Survivor... 139 Eligibility... 140 Deferring your Old Age Security pension... 140 Lived or Living Outside Canada Pensions and Benefits... 141 What is a Social Security Agreement?... 141 How can a social security agreement help me qualify for benefits?... 141 Canadian benefits... 141 Foreign benefits... 142 Applying for Benefits... 142 Canada s social agreements with other countries... 142 Further Information... 145 Chapter 13 DEATH AND WILLS... 147 Powers of Attorney... 148 Chapter 14 EMIGRATION... 149 APPENDIX... 151 INDEX... 305 DIRECTORY... 319