Tax refunds

I have just filed my taxes and have received a refund check from CRA for my taxes paid as well as EI and Pension contributions. I work for a US company and they are insisting that I have to return the refund to them in Full. The EI and Pension contributions came from my base salary. The income tax was paid in part by me and in part by my company. They have not really explained why I have to return the refund to them other than I have to because if I was in Canada I would have to pay taxes. Any advise as to why or if I need to return the refund would be great!

Also, I have been told that my tax forms have been ammended so that I am not getting a refund for EI or Pension contributions. As a non-resident am I elligable for EI and Pension benifits?

Thanks

Michelle

Strange - if you're a non-resident I thought you wouldn't have to pay taxes to begin with? Have you applied for official non-resident status?

I have applied for and now have official non-resident status. I am not sure why any taxes are with held salary to begin with. or how I am can get EI as a non-resident. My company is really pressuring me to return the refund to them, but it doesn't seem legal that I should have to return MY tax refund???

If you're an U.S. expat, you should seek the advice of a professional to take a look at your tax situation. Come check out our website www.expatriatetaxreturns.com and we can take a look and what you need to do. We are here for you.

Follw this up with me at forums.serbinksi.com

If you live and work in canada, your tax resposibility it to canada first, if you live and work in US, your tax resposibility is to US.

In either case, your company's resposibility is to pay you, not worry about how much or how little tax you pay. Unless they had an agreement with you that "paid" you extra to cover Cdn taxes.

From your post it seems you live in a 3rd country (Korea?).

If that is the case, Canada should not be taxing you nor is your wages eligible for counting towards EI or CPP, so that is why CPP and EI were frefunded to you. You would need to expalin what the mechanism was for you and/or your comapny to remit taxes to Canada in the first place. Was it by quarterly check to CRA?

But, logically, if the company gave you money specifically to pay your Cdn taxes (many firm with intl employees do this) and you do not owe those taxes, you would need to refund the comapny -- but only that portion.

The other question you then have is since you are no longer resident in canada, you msut be resident of Korea, so should be taxed there. That was one of the conditrions of canada granting you "official" non-residence status: becoming resident (and taxable) elsewhere.

AGN,
yes I am living and working in Korea, and the company pays the Korean taxes for me, as that is part of the agreement for my employment. The money with held for Candian taxes is not given to me, but taken from my base salary. I have also been informed that I am elligable for EI and CPP so my income tax return has been amended and the EI and CPP will not be reunded. The tax prep company has also stated that the refund will be remitted dirrectly to my company. against my request to send the refund check to me first.

this all makes no sense to me.

Me either.

If you are living and working in Korea, why are you even filing a Cdn tax return? Only Cdn residents or those earing income in canada need to file a Cdn return.

On what basis are you (or Cdn govt) claiming that you live in canada?

Also, even if you had Cdn income tax withhled from your pay, the only person the Cdn govt will send the check is YOU.

Your story has some holes in it.

my company is with holding taxing because that is the way they do things for US employees. neither me, or the government of Canada is claiming I live in Canada.

the reason I have been told the refund goes to my company is beacause if I was working in Canada I would have to pay taxes. if you know any tax sepcialsts/lawers that would be very helpful.

right now I am not only concerned about my current tax situation, but what will happen when I return to Canada...

Well, if your comapny was going to pay Cdn taxes, and ends up not having to, then they should get the money, not you.

You needed to negociate better terms. many firms negocitate terms which cover taxces. If you don't owe taxes (and you most certainly do not in canada) then the comapny was not required to pay you that ammount.

Quite simply, this has nothing to do with canada, and you should not be filing anything about this job there.

As to your future tax situation, if you do not correctly inform Canada that you have left canada, or if you file a return as a resident but do not correctly report the income, then you will have LOTS of trouble. The fact that you say the firm is submitting and resubmitting a return in canada ashould worry you, as you have no business doing this.

I'd like to here more at forums.serbinski.com, but I'm not responding on this thread anymore.