Departing Canada, fiscal year end
Moderator: Mark T Serbinski CA CPA
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taxquestions
- Posts: 42
- Joined: Tue Dec 18, 2018 6:31 pm
Departing Canada, fiscal year end
When one emigrates Canada, does their sole-prop T2125 fiscal period end on their departure date, or is it still on 12/31?
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taxquestions
- Posts: 42
- Joined: Tue Dec 18, 2018 6:31 pm
Re: Departing Canada, fiscal year end
1. Did some research. For an individual, it would be in ITA subsection 128.1(4)(a.1) it would deem your year end to be at the time you became a non resident of Canada. So from my understanding my fiscal year end is the day I depart.
2. I continued to conduct business in Canada with no PE, as a US sole prop. The CRA does not require a tax return to be filled if no tax is owed or you want a refund. Since the US-CANADA tax treaty business profits are exempt unless I have CDN PE. Because of this I will not be filling a NR return for the US sole prop activity. I will file a GST return though.
2. I continued to conduct business in Canada with no PE, as a US sole prop. The CRA does not require a tax return to be filled if no tax is owed or you want a refund. Since the US-CANADA tax treaty business profits are exempt unless I have CDN PE. Because of this I will not be filling a NR return for the US sole prop activity. I will file a GST return though.