Help your immigrant client face the taxman

Taxes can be confusing for anyone in Canada, and more so if you’re new to the country.

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But if your client is a newcomer, don’t let him put off the taxman. Your client must file a return to receive a refund or to take advantage of tax benefits and credits to which he may be eligible — not to mention to fulfil his reporting obligations.

The Canada Revenue Agency lists reasons to file a return here.

Your client becomes a resident of Canada for income tax purposes when he establishes significant residential and social ties in Canada. That could include having a home or a spouse or common-law partner in Canada. These ties are usually established the date your client arrives.

Potential benefits and credits include the Canada child benefit and the GST/HST credit. To receive benefits and credits, your client’s spouse or common-law partner must also file a return.

Also, if your client is a resident for income tax purposes, has a modest income and a simple tax situation, he may be able to get help from the community volunteer income tax program (CVITP). The program is a collaboration between CRA and community organizations across Canada. These organizations hold tax preparation clinics, where their volunteers can prepare and submit your client’s tax return for free.

For more tips for clients, visit AdvisorToClient’s tax page. Not only is the website full of tailor-made content you can easily share, but some of the articles are also available in three other languages (Chinese, Hindi and Punjabi).

Further, check CRA’s website for more information for newcomers and to find out how to get a social insurance number. Also check out CRA’s video on Canada’s tax system, as well as its videos and webinars offering tax help.

read: CRA may be watching clients’ social media

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.