In foreign countries, voluntary tax compliance is essential. One of the primary concerns for new immigrants upon their initial arrival in Canada is when to begin filing taxes and what materials are required, for fear of delays or complications with the Canada Revenue Agency. Below, we have listed the documents that Canadian immigrants need to prepare for tax filing. Please check against this list before filing, and you should have no major issues.
(I) Preparation for Tax Filing:
1. Notice of Assessment from the previous year (this is not required for first-time filers, but it is advisable to bring a VOID cheque).
2. Social Insurance Numbers (SIN) and dates of birth for all family members.
3. Employment income (T4, T4A), interest income (T3, T5), unemployment benefits (T4E), Old Age Security (T4A(OAS)), Universal Child Care Benefit (UCCB), and social assistance (T5007), etc.
4. Tax deduction documents: RRSP contributions; child care expense receipts and the recipient's SIN; interest and fees on investment loans; professional association or union dues; moving expenses.
Tuition fees (T2202A), student loan interest, medical expenses, children's fitness expenses, public transit passes, property taxes or rent, and charitable donations, etc.
(II) Documents Required for Rental Property:
Total annual rental income; percentage of the property used for rental; advertising expenses, property insurance, mortgage interest, management fees, renovation costs, utilities (water, electricity, gas), and other expenses.
(III) Preparation for Small Business Tax Filing:
1. Business nature; Business Number (BN); business income (excluding GST); GST; and the previous year's tax filing documents.
2. General expenses: Advertising costs; registration and licensing fees; office supplies; consumables; entertainment expenses (meals, entertainment); office rent; employee wages; travel expenses (accommodation, transportation); telephone expenses; other expenses (gifts, etc.).
3. Vehicle expenses: Total annual mileage; business-related mileage; fuel costs; vehicle loan interest; insurance; vehicle registration fees; maintenance and repair costs; vehicle lease payments; others (car wash, parking fees, etc.); and the undepreciated capital cost of the vehicle from the previous year.
4. Home Office expenses: The percentage of the total area occupied by the office; or rental expense breakdown.