Going to Ottawa on IR

[mikeydnd]

Good day gents,
I was wondering if I am going to Ottawa on IR and decide to live on the Quebec side to I have to pay Quebec taxes or because I still maintain my Kingston address I would still pay taxes like someone living in Ontario.

Thanks

 

[Pat in Halifax]

You pay income tax in the province of your primary residence...so, in your case, ON. Your T4 may say QC on it next February but your pay is taxed (again) at the rate of your home province.

 

[DAA]

You pay taxes based on your "primary" residence.  DCBA has already received rulings from CRA regarding CF members on IR.  If you choose to live on the Quebec side, you pay Quebec Taxes, regardless of where your family resides.  When you file your income tax return at the end of the year, it's up to you to determine your provincial status.

Unless there are any new rulings from CRA that I am not aware of.

 

[mikeydnd]

right on thanks guys much appreciated

 

[mikeydnd]

Anyone else know anything different I would like to live in Quebec and really don't want to have to pay the taxes

 

[DAA]

Anyone else know anything different I would like to live in Quebec and really don't want to have to pay the taxes

My suggestion, contact CFSU Ottawa Reception and ask them about the implications of being employed at NDHQ (Ontario) whilst being a resident of Quebec and the implications on your pay.  Hopefully, they should be able to give you a straight answer.

 

[armyvern]

Anyone else know anything different I would like to live in Quebec and really don't want to have to pay the taxes

If you live on the Quebec side, they have no choice but to deduct Quebec taxes from your pay each month; that being said, when you file your annual tax return, your province of residence is "Ontario" for your return as you actually still "live" in your primary residence (Kingston) while IR.  You'll get a refund, you just won't get it until income tax time.

 

[Pat in Halifax]

If you live on the Quebec side, they have no choice but to deduct Quebec taxes from your pay each month; that being said, when you file your annual tax return, your province of residence is "Ontario" for your return as you actually still "live" in your primary residence (Kingston) while IR.  You'll get a refund, you just won't get it until income tax time.

That's what I was TRYING to say...Sorry for the confusion!

 

[armyvern]

That's what I was TRYING to say...Sorry for the confusion!

I think DAAs post may have been the confusing one.  Yes he must pay Quebec taxes off the bat if he lives there, but on his income tax return he must use his primary residence of "Ontario" and ergo just has to wait until then to get the tax overage he would pay back on his federal return.

 

[mikeydnd]

makes sense... thanks gents

 

[Scoobie Newbie]

And Ladies.

 

[DAA]

I think DAAs post may have been the confusing one.  Yes he must pay Quebec taxes off the bat if he lives there, but on his income tax return he must use his primary residence of "Ontario" and ergo just has to wait until then to get the tax overage he would pay back on his federal return.

I have to agree.  My information is probably out of date on the issue.  When I did a stint on IR in Ottawa, we were strongly encouraged not to take up IR residence on the Quebec side due to the tax implications.  At that time (2001-2002) CRA had rendered a decision regarding the status of CF members proceeding to another province under the auspicies of IR and it was definitely not a favourable one.  We were provided with copies of a message issued by DCBA/DPPD which outlined the decision.

However, given that this was issued 10 years ago, it may no longer be relevant.  Nevertheless, the standard concept of "Filing a personal income tax return is considered to be a private matter between the member and CRA" is the new guiding factor.

Sorry about that...

 

[buzgo]

I've got an IR question and after searching I figure that this is the best out of the IR threads to ask it in.

I'm posted IR, I've found a place, the landlord has never rented to a military person before. I have never been on IR before. I was told that I should negotiate an 'escape clause' into the lease. After reading the CBI it seems to me that if I went somewhere for 90 days or more and had to break the lease that the CF would cover up to 3 months rent as a penalty.

My question is, what is meant by an 'escape clause' - an example would be perfect so that I could then negotiate this with the landlord.

Thanks!

 

[DAA]

You need to try and negotiate a lease with a "30-day termination clause", which is what they (ie; your new Base) should be telling you!  Nothing less or else your own your own.  The 90 day period is "potentially" a reimburseable benefit but not a given.

 

[PMedMoe]

Most landlords are fine with a month to month lease (no contract).

 

[buzgo]

Thanks for the info.

 

[FSTO]

Another IR question;

I am on IR here in Victoria, I have secured accommodations on the economy and everything is going fine (relativley speaking). But I am scheduled to go to Halifax on TD for a total of 99 days. According to the BOR here in Esquimalt I have to give up my accommodations due to being away for more than 90 days at a stretch. The only ref that has been quoted to me is this one:

CBI 208.997(11) (Amount – Termination
Expenses) When a member is posted — or
attached posted or placed on temporary duty —
away from their new place of duty for a period of
90 days or more and is required by law or
contract to terminate their accommodation, the
amount of SE is limited to:

My question is this, what is the ref for this? I've searched throughout the DIN and have looked at the acts and laws that Treasury Board is responsible for and have found nothing. There seems to be no guide or ref that spells out exactly what you are entitled to while on IR.
I need some help here.
Thanks

 

[DAA]

Submit a request to retain your accommodations in your absence on TD.  What they are probably quoting you comes out of the "OLD" DCBA 3 Domestic Benefits guide which was quashed a year or so ago.  The CBI you quoted is the reference, however, DCBA can make exceptions and seeing as your away for 99 days, I am sure they would.  The purpose behind the "90 day" limit is directed more towards people who end up on taskings or absences of a more extended length (ie; 6 months or more).

It makes no sense for you to give up the accommodations, only to return and have to seek them all over again.  It only serves to "re-trigger" your original moving benefits.  I bet they haven't considered that part but I am sure DCBA would.

 

[FSTO]

Submit a request to retain your accommodations in your absence on TD.  What they are probably quoting you comes out of the "OLD" DCBA 3 Domestic Benefits guide which was quashed a year or so ago.  The CBI you quoted is the reference, however, DCBA can make exceptions and seeing as your away for 99 days, I am sure they would.  The purpose behind the "90 day" limit is directed more towards people who end up on taskings or absences of a more extended length (ie; 6 months or more).

It makes no sense for you to give up the accommodations, only to return and have to seek them all over again.  It only serves to "re-trigger" your original moving benefits.  I bet they haven't considered that part but I am sure DCBA would.

Thank you, that is what I was planning to do. This just confirms that I am on the right track!