Identification

Complete the entire identification area of your return, even if you attach a personal label. If you provide incomplete or incorrect information, the processing of your return, and any refund, credit, or benefit, such as your goods and services tax/harmonized sales tax (GST/HST) credit, and any benefit to which you may be entitled under the Canada Child Tax Benefit Program, may be delayed.

Personal label

If you have a personal label, attach it to your return. If your name, your address, your social insurance number (SIN), or your spouse's SIN is incorrect, put a line through the wrong information, and print your changes clearly on the label.

We may modify part of your address to meet Canada Post's requirements. Therefore, the address on your package, Notice of Assessment, or any other correspondence we send you may be different from the one you indicate on your return.

Marital status

Check the box that applies to your status for income tax purposes on December 31, 1998. Check either "Married" or "Living common law" (whichever applies) if you had a spouse who meets the definition below. Check one of the other boxes only if the first two categories do not apply.

Spouse

This term applies to a person to whom, at the time, you were legally married, or with whom, at the time, you were living common law.

Living common law - This applies when you live and have a relationship with a person of the opposite sex to whom any of the following applies. He or she:

• is the natural or adoptive parent (legal or in fact) of your child;
• has been living with you for at least 12 continuous months; or
• lived with you previously for at least 12 continuous months, and you are living together again.

The above includes any period that you were separated for less than 90 days because of a breakdown in the relationship.

Province or territory of residence

Enter the province or territory where you lived or of which you were considered to be a factual resident on December 31, 1998. For details, see "Which tax and benefit package should you use?" on page 10.

Self-employed

If you were self-employed in 1998, enter the province or territory where you had a permanent business establishment.

Elections Canada

On page 1 of your return, you can authorize us to give certain information to Elections Canada to help maintain the National Register of Electors. See page 5 of this guide for more information.

Goods and services tax/harmonized sales tax (GST/HST) credit application

In Newfoundland, Nova Scotia, and New Brunswick, provincial sales taxes have been harmonized with the GST, resulting in the HST. You can only receive the GST/HST credit if you apply for it each year, even if you received it in the previous year. To apply, you have to complete this area on page 1 of your 1998 return. Your credit is based on the information provided on your return and, if applicable, your spouse's return (see the definition of "spouse" above). If you qualify, you will receive the payments in July and October of 1999, and January and April of 2000.

Before you complete this area on your return, be sure to read all of the information in this section. If you apply, we will let you know in July of 1999 the amount to which you are entitled, if any, and how we calculated your credit.

Who can apply?

You can apply for the GST/HST credit if, at the end of 1998, you were resident in Canada and any of the following applies. You:

• were 19 years of age or older;
• had a spouse; or
• were a parent.

Notes
If you have a spouse, only one of you can apply for the credit. No matter which one of you applies, the credit will be the same.

To be eligible to receive a GST/HST credit for a particular month, you have to be resident in Canada at the beginning of that month.

Who cannot apply?

You cannot apply for the GST/HST credit if, at the end of 1998, you either:

• were confined to a prison or a similar institution, and had been there for more than six months during 1998; or
• did not have to pay tax in Canada because you were an officer or servant of another country, such as a diplomat, or a family member or employee of such a person.

Note
You cannot claim the credit for your spouse or child who met either of these conditions at the end of 1998.

Number of children

You can claim a GST/HST credit for each of your children who, at the end of 1998:

• was under 19 years of age;
• did not have a spouse;
• was not a parent; and
• either lived with you, or was claimed as a dependant by either you or your spouse.

Only one person can claim a GST/HST credit for a particular child.

Net income of spouse

Your spouse's net income is the amount on line 236 of your spouse's return, or the amount that it would be if your spouse filed a return.

Income limit

In the chart that follows, look up the number of children you have. If your net family income is equal to, or less than, the amount shown across from the number of your children, you may be entitled to receive the credit. Your net family income is the total of your net income and, if applicable, your spouse's net income.

Note
These income limits are only guidelines to help you decide if you should apply for the credit. If you apply, we will send you a notice by the end of July 1999 to let you know the amount to which you are entitled, if any.

Calculating your GST/HST credit

To find out how to calculate your GST/HST credit, call our T.I.P.S. (Info-Tax) service. See the T.I.P.S. information on page 7.

We may apply your GST/HST credit against certain outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance and social assistance benefit overpayments, Immigration loans, and training allowance overpayments. We may also apply it to satisfy a garnishment order under the Family Orders and Agreements Enforcement Assistance Act.

Foreign income

As a Canadian resident, you have to report your income from all sources, both inside and outside Canada.

Foreign property

On page 1 of your return, there is a question for you to answer about owning or holding foreign property. This refers to:

• foreign property you owned; and
• your share of foreign property in which you had an interest.

Answer "yes" if the total cost of all these properties was more than CAN$100,000. Get Form T1135, Foreign Income Verification Statement, and attach a completed copy to your paper return. If you are using EFILE (see "Filing your return" on page 11) send Form T1135 directly to us.

Foreign property includes:

• funds held outside Canada (including a foreign bank account);
• tangible property located outside Canada, including real estate and equipment;
• an interest in a non-resident trust, including a foreign mutual fund trust;
• intangible property located outside Canada, such as rights to royalties, and a share of a Canadian corporation deposited with a foreign broker;
• a debt (such as a note, bond, or debenture) owed or issued by a non-resident; and
• shares in non-resident corporations.

Note
If you (either alone or with related persons) held 10% or more of the shares of a non-resident corporation, you may have to file an additional return. For more details, contact us.

However, foreign property does not include:

• an interest in a registered retirement savings plan (RRSP), registered retirement income fund (RRIF), or registered pension plan (RPP) that contains foreign property;
• mutual funds registered in Canada that contain foreign investments;
• property you used or held exclusively in the course of carrying on your active business; or
• your personal-use property.

Form T1135 contains more information about filing, and a complete list of the different kinds of foreign property.

Loans and transfers to non-resident trusts

In 1998 or a previous year, you may have loaned or transferred funds or property to a non-resident trust. If so, you may have to complete and file Form T1141, Information Return in Respect of Transfers or Loans to a Non-resident Trust. For more information, get Form T1141.

Beneficiaries of non-resident trusts

In 1998, you may have received funds or property from, or been indebted to, a non-resident trust under which you were a beneficiary. If so, you may have to complete and file Form T1142, Information Return in Respect of Distributions From and Indebtedness to a Non-resident Trust. For more information, get Form T1142.

Due dates for forms

The deadline for filing these forms is the same as for your 1998 return (see "What date is your 1998 return due?" on page 11). File Form T1135 with your return. File Forms T1141 and T1142 separately from your return. You do not have to file any of these forms for the year you immigrated to Canada.

Penalties

There are substantial penalties for failing to complete and file these forms by the due date.