Learn the effects of immigration and emigration on Canadian taxes.
A big move can be stressful. We’ll help make it a little easier.
We can offer tax compliance services to individuals who are immigrating to or emigrating from Canada. The year of immigration/emigration is a challenging year from a tax perspective. It usually requires tax returns for two countries: Canada and the other country involved in the move. When a couple moves to or from the United States, there are frequently four returns needed: U.S. federal, U.S. state and two Canadian returns (one for each spouse). The number of returns is further complicated by the need to manually calculate the income to put on each return, as the date of immigration/emigration usually will not correspond with the income as reported on the tax slips. If this sounds complex, that’s because it is. With our expertise, however, we can handle even the most complicated transitions.
We also offer tax planning and advisory services in anticipation of your move.
For immigrants, it is important to understand the basics of the Canadian tax system, what your obligations will be, and what amount of tax you can expect to pay on your income. We can advise you on this. We can also suggest planning actions you can undertake before arriving in Canada to lower your tax burden or to simplify your compliance.
Emigrants from Canada will need to file a final, part-year tax return for the year of departure. You may also be subject to “departure tax” when leaving Canada. We can advise you on what income will be reported on your final return, what special forms need to be filed (T1161 and T1243) and what level of departure tax you may face. We can also recommend actions you will want to take in the country to which you are moving to obtain credit for departure tax paid.
To learn how immigration or emigration may impact your Canadian taxes, please contact us.