Backtracking on taxes

Hi,

I'm having a nightmare with my taxes and am hoping some of you lovely Canadians might be able to help me out.

I moved to the UK in May 2007 from Canada and have been living here ever since. For the 2007/2008 tax year I reported only my income earned in Canada (not my UK income) because I did not receive my P60 until after the Canadian tax deadline and was unsure how to report it. In 2008/2009 I filed a T1 tax readjustment and filed the UK income in CAD. For the 2008/2009 year since I also paid tax in the UK, I attempted to complete a T2209 form to receive a foreign tax credit that avoids dual taxation (as put forward by the 2003 Canada/UK tax treaty). I did not fill out this form for the 2007/2008 tax year as it was a year late.

I have only now received a large bill from Revenue Canada for 2007 which is obviously charging me tax on the re-adjusted foreign income. I am aware I could have filed as a non-resident if I live here for 2+ years, but I didn't not know when filing taxes how long I would be here. I also still have a Canadian drivers licence, passport, one bank account and RRSPs.

It should also be noted that I worked briefly in August 2008 when I was home in Canada and inbetween VISAs.

This mess results in a few questions:
- how do I avoid paying this dual tax on my 2007/2008 and 2008/2009 income?
- should I expect to receive another big bill for 2008/2009, or will the T2209 be sufficient to stop this?
- do I fill out another T1 adjustment for 2007/2008 and a first T1 adjustment for 2008/2009 claiming non-residency and only my canadian income?
- Is it possible to file a NR73 changing my residency status from May 2007 or will working in 2008 stop me from doing this?
- Does having a Canadian passport, RRSPs, bank account and drivers license mean I can not file as a non-resident? I have heard different answers to this question.

Any help you can provide would be much appreciated. I have tried calling the International Tax Office but they are unreachable and mostly useless. I realise I'm an idiot for leaving this so long, but I also don't have a lot of money to pay an accountant. That being said, if anyone knows of a good but affordable acccountant that deals in UK-Canadian tax issues, please let me know.

Kim

I would suggest stumping up some cash and getting some proper cross border tax advice. It's not cheap though.

I use compass tax in calgary to deal with my non resident accounts and canadian returns as I own a few houses in canada that I rent out while I am here in the UK.

compasstax dot ca

There are a few of these specialty companies in most major cities. Don't just use your regular local accountant as CRA is a nightmare if you don't understand the lingo.
good luck

Hi Kim

I am a Canadian CGA and UK chartered accountant / chartered tax adviser practicing in the UK. I specialize in providing Expat tax services to Canadians in the United Kingdom.

Take a look at my website at www.lynch.pro for details on the services I offer. My fees are reasonable.

Give me a call at 01782 444 256. e-mail kmlynch@btinternet.com

Regards


Kieran Lynch

where is crewe???

I'm in essex.

Was looking at flogging a property in calgary once the oil patch takes off again and housing prices bump up some more.

Can you deal with the clearance certificate stuff? I used compax tax last time but it woulkd be easier to deal with a UK firm if you could do it.

Hi

Crewe is in the North West of England, close to Stoke on Trent. I can certainly look after the withholding tax clearance application for you when you come to dispose of your Canadian properties.

I have clients scattered throughout the UK and North America. I hae no difficulty handling their affairs by telephone and e-mail.

Give me a call or e-mail if you want to discuss.

Kieran

outstanding! Will drop an email when I flog it. Much easier to have someone on this side of the pond

@green_queen....

Can I ask if you've resolved your canadian tax issues? I lived abroad since 2005, (HK and UK) and haven't done my canadian taxes since I left. I just let CRC know that I'm in England and requested my T1's be sent here so I can start dealing with them... but I don't know where to start! I also want to claim non residency.

Have you had any luck, or used an accountant that helped?

Thanks.

I am a Canadian CGA and UK chartered tax adviser. I can help with your Uk and Canadian tax obligations. For further information visit my website at www.lynch.pro

Kieran
kmlynch@btinternet.com
01782 444256