Must I file taxes if I am in Jamaica? - News - Jamaica Gleaner - Tuesday | April 1, 2014

Must I file taxes if I am in Jamaica? - News - Jamaica Gleaner - Tuesday | April 1, 2014

Dear Ms Powell,

I got my permanent resident card last year and I landed last February, but I had to come back to Jamaica to finalize  my move. I know it's tax season and I was told that some tax documents were delivered to my house in Canada. Do I need to file tax returns considering that I have been out of the country most of the year? My friend says that I could get benefits if I file. What are the benefits of filing tax returns? Can I file from Jamaica? Could you give me some advice on how to file my tax for the first time? Thanks.

- M.G.

Dear M.G.,

The day you land in Canada as a permanent resident, you have established residential ties with Canada and, therefore, have the rights, benefits, and obligations as a permanent resident.

As a permanent resident, you are entitled to receive benefits such as health-care coverage; childcare allowances; be able to live, work and study in Canada; protection under Canadian law and the charter; apply to become a citizen; and have all the benefits flowing from your status as a citizen.

Another significant responsibility is that you will need to pay taxes, which help to facilitate those benefits. You will be taxed on your worldwide income.

You will be required to file Canadian income tax returnsfor the previous year in order to claim certain benefits such as the GST/HST credit, the Canada child tax benefit, universal childcare benefit, employment insurance benefit, access Canada pension plan, income supplement under the Old Age Security Programme, to name a few. You may be entitled to claim credits for tuition, books, and other benefits and  you may only do so by filing your returns.

Please note that the deadline for filing your Canadian income taxes is midnight April 30, 2014. Paper returns usually take four to six weeks to process. For paper tax returns filed before April 15, wait four weeks before you check on your refund. For paper tax returns filed after April 15, wait six weeks before you check.

If you owe income tax and file your income tax return after the deadline, the Canada Revenue Agency (CRA) will charge a penalty and interest on the unpaid amount.

Before you tackle your income tax return, make sure you have the following information:

• Social insurance number

• Tax information slips - information slips sent by employers, banks and businesses to tell you and the Canada Revenue Agency how much income you received and the amount of income tax that was deducted.

• Information on other income, including self-employment income.

• Receipts for tax deductions.

You don't actually have to be in Canada to file your tax returns. You may file your returns online or hire an agent or accountant to complete it on your behalf. The following are ways to file your returns:

1. File your Canadian income taxes online using NETFILE.

2. File your Canadian income taxes by mail.

3. Pay a service provider to file your taxes online using EFILE.

4. Hire an accountant to do your income taxes.

Select the one that is most appropriate for you and your income tax situation.

If you owe taxes, you can pay your Canadian income taxes by mailing a cheque to the CRA, using your regular online or telephone banking, using the CRA's 'My Payment' service, or paying at a Canadian financial institution. If you have to pay by installments, you can also set up a pre-authorized debit plan. Electronic NETFILE or EFILE returns can take up to five to eight business days to be processed, however, you should still wait at least four weeks before you check on your refund.

Be sure the CRA has your current address. That way, you'll receive refunds and benefit payments, as well as important notices, without interruption.

Deidre S. Powell is a lawyer, mediator, and notary public who is a member of the Jamaican and Ontario, Canada bars, with main office located in Ottawa, Ontario. Her areas of practice are in immigration, personal injury, commercial, family, and administration of estates. She is on the roster of mediators for Ottawa, Toronto, and the Dispute Resolution Foundation of Jamaica. Submit your questions and comments to: Email:info@deidrepowell.com. Subject line: Immigration. Tel: 613-695-8777.