Claiming parent in US as dependent in Canada

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US_Canada
Posts: 36
Joined: Thu Feb 01, 2007 11:11 pm

Post by US_Canada »

I did the quick access and it only mentions that the account was assessed and refund deposited back in May. Nothing more.

Did I really get audited? Or was it just one of those general letters they send me every year? Last year, they wanted to know how many times and what dates I had stepped out of Canada. I replied to that and never heard anymore.
nelsona
Posts: 18317
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

In 30 yrs of my returns, I've never gotten questionned on anything.

Its not an audit. Its more a cross-check.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
US_Canada
Posts: 36
Joined: Thu Feb 01, 2007 11:11 pm

Post by US_Canada »

[quote="nelsona"]In 30 yrs of my returns, I've never gotten questionned on anything.

Its not an audit. Its more a cross-check.[/quote]

Hey Nelson...thought I'd update you.

Got a letter the other day from the CRA where they denied me for not providing proof of residence. On my 2nd call to them (to clarify something), I got the exact officer who had reviewed this and he said the rules are for the dependent to be a resident. I went over the Treaty clause, told him the details of how I pay for everything in the US --- so he said send in the info again and they'll review it again.

I told him if I was chinese and my dad was in China, then they could deny for the dependent not being a Canadian resident. But XXV.3 allows for US residents being dependents (in my interpretation ;) . He kind of agreed.

I'll update this thread for academic purposes when the final situation firms up.

But thanks regardless.
nelsona
Posts: 18317
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

We keep going round on this. If you were in Toronto and your father was in vancouver, your claim would be denied.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
US_Canada
Posts: 36
Joined: Thu Feb 01, 2007 11:11 pm

Post by US_Canada »

[quote="nelsona"]We keep going round on this. If you were in Toronto and your father was in vancouver, your claim would be denied.[/quote]

Well, I called and it went my way. :)

It makes sense if you think of it from a different angle: Section XXV is "Non Discrimination". If they had denied the claim, it'd be discrimination against US citizens working in Canada whereas Canadian citizens working in the US would get non-resident support benefit from the IRS. The whole point of this clause (which is how I initially read it) is to establish exemption --- exemption from the tax rules you were suggesting apply to "regular" taxpayers in Canada.

I'm glad you helped and posted regularly, our internet conversations put me in a better position to argue this with the CRA. Thanks!
nelsona
Posts: 18317
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Hey, CRA makes mistakes, usually in their favour. THis one is in yours.

At least you kept fighting for it and wore them down...

And your wishful reading of the treaty is not correct.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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