UN employee tax

[semdude]

Hi,

I am not a Canadian citizen. I am currently living in Canada on a work permit. I am in the midst of the process to get my PR status. I have a child who lives with me. Although I earn a little bit of money working a variety of short term contract jobs, my child and I rely mostly on the money my wife sends us. My wife is not a Canadian citizen but visits us frequently. She works for the UN in Africa. My questions are: Do I have to report her income when I file for my tax return? Is she considered as a resident for tax purposes? Does she have to file tax returns? If so does working for the UN make her eligible for exemption from tax?

Thank you.

 

[Amadan123]

Hello semdude,

I hope you are well.

Income taxation in Canada depends not on residency or immigration status, but on residential ties to Canada. Residential ties are broken into primary and secondary ties. The presence of a primary tie alone will make you a resident of Canada. The presence one secondary ties alone will not make you of a resident of Canada, but instead, they will be looked at in aggregate.

Primary ties are the presence of the following in Canada

• spouse
• dependant
• dwelling (house)

Secondary ties are the presence of the following in Canada:

• personal property
• financial accounts
• social clubs

Considering the above and based only on the information provided, it may seem that your wife could be deemed a resident of Canada for tax purposes because of her primary residential ties (you and the child being in Canada). If this is the case, then your wife would have Canadian tax reporting and payment obligations.

I cannot speak on the UN employee tax exemption status.

You should still have someone look into this situation with more facts. The last thing you would want is to not file/pay tax when you should have done so. If you and your wife honestly did not know, a Voluntary Disclosure Program (VDP) is always an option.

VDP: http://www.cra-arc.gc.ca/voluntarydisclosures/

Madan Chartered Accountant
www.madanca.com