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| Subject: Immigration Trust - When the 5 Years start? |
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Regarding the five year period of immigration trust. When does it start? In the year of the landing date or in the first tax residency year?
For example, let´s say I do the landing in 2010, after a few weeks I leave canada, and come back in 2012. Can I use the trust until 2015 or until 2017?
[13-01-2010,23:46]
[***.132.59.199]
Alan |
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(in reply to: Immigration Trust - When the 5 Years start?)
The day of landing is exactly when the clock starts ticking.
[14-01-2010,11:10]
[***.132.11.77]
Anonymous |
(in reply to: Immigration Trust - When the 5 Years start?)
Thanks. That is probably how it works in the general case. However, I did some checks and I think that if I move to a country with which Canada has a tax treaty - that period should be excluded.
I think that the immigration trust is defined in the Income Tax Amendments Act, 2006, Subsection 75(3). The 60 months limit is defined by "... been resident in Canada for a period of, or for periods the total of which is, not more than 60 months...".
Now, section 24 of the INCOME TAX ACT, "Determination of an Individual’s Residence Status" documentation says: "An individual who is otherwise resident in Canada for purposes of the Act, and who, at a given time, is resident in another country for purposes of a tax treaty between Canada and that country, is deemed not to be resident in Canada at that time, ... The individual is treated as a non-resident for all purposes of the Act..."
Therefore, if in 2010 and 2011 I am a resident of another country according the tax treaty - that period should be excluded from the 60 months.
Am I right? If not - What have I missed?
[14-01-2010,16:00]
[***.132.59.199]
Alan |
(in reply to: Immigration Trust - When the 5 Years start?)
I think this is an apples and oranges situation. If I´m not mistaken, the immigration trust you´re refering to is a 5-year tax deferal period for new residents where foreign income can be exempted from taxation. Although this period normally begins when residency is established, it has nothing to do with your immigration status as a permanent resident. Even if you move back to your home country and reside there after landing, the clock is still ticking as a Canadian Permanent resident.
The moment you land, your PR status is established and becomes valid for 5 years until renewed. Regardless of any immigration tax trusts established or subsequent foreign residence, the date you established permanent residency remains fixed at the time of landing, with the requirement to reside in Canada for 2 out of 5 years in that time period.
[14-01-2010,23:49]
[***.132.11.77]
Anonymous |
(in reply to: Immigration Trust - When the 5 Years start?)
Yes. The 5 year period of the PR is a different story. My question is relevent for anyone that uses immigration trust and does not present in Canada continuously in the first 5 PR years.
[15-01-2010,02:15]
[***.132.59.199]
Alan |
About immigration Trust (in reply to: Immigration Trust - When the 5 Years start?)
I was most interested to find some explanations about immigration trusts. Could you tell me where I can find all détails about the Canadian immigation trust ? Legally, I mean. All fiscalist i contact ask me money. I want to read first all about it. Thank you for your help.
[24-08-2010,22:20]
[***.177.226.74]
Albert |
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