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ARCHIVED - General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada 2000

Refund or Bal ance owing

Lines 409 and 410 - Federal political contribution tax credit

Enter on line 409 the total you contributed during 2000 to a registered federal political party or a candidate for election to the House of Commons. Use the chart for line 410 on the Worksheet you will find in the centre of this guide to calculate your credit.

Receipts - Attach your official receipts to your return. You do not have to attach receipts for amounts shown in box 36 of your T5013 slips, or on financial statements showing an amount a partnership allocated to you.

Line 412 - Investment tax credit

You may be eligible for this credit if any of the following applies. You:

• bought certain new buildings, machinery, or equipment and they were used in certain areas of Canada in
• activities such as farming, fishing, logging, or manufacturing;
• have unclaimed credits from the purchase of qualified small business property from December 3, 1992, to December 31, 1993;
• have an amount shown in box 41 of your T3 slip;
• have an amount shown in box 38 or 138 of your T5013 slip
• have an amount shown in box 128 of your T101 slip; or
• have a partnership statement that allocates to you an amount that qualifies for this credit.

How to claim

Attach to your return a completed copy of Form T2038 (IND), Investment Tax Credit. For more information on the investment tax credit, see the information sheet attached to Form T2038 (IND).

The time to submit a completed Form T2038 (IND) for a qualifying expenditure is limited. To be able to claim a credit for such an expenditure, you have to send the completed form to us no later than 12 months after the due date of your return for the year the expenditure arises.

Tax Tip
You may be able to reduce your federal individual surtax by any unclaimed investment tax credit, or claim a refund of your unused investment tax credit. For details, see lines 419 and 454.

Lines 413 and 414 - Labour-sponsored funds tax credit

You may be able to claim a credit if you became the first registered holder to acquire, or irrevocably subscribe to and pay for, an approved share of the capital stock of a prescribed labour-sponsored venture capital corporation (LSVCC) from January 1, 2000, to March 1, 2001.

If you became the first registered holder of an approved share from January 1, 2000, to February 29, 2000, and did not claim the whole credit for it on your 1999 return, you can claim any unused part on your 2000 return. If you became the first registered holder of an approved share from January 1, 2001, to March 1, 2001, you can claim any part of the credit for that share on your return for 2000, and any unused part on your return for 2001.

Enter your net cost on line 413. Net cost is the amount you paid for your shares, minus any government assistance (other than federal or provincial tax credits) on the shares. Enter the amount of the credit on line 414. The allowable credit cannot be more than 15% of the net cost, to a maximum of $750.

Receipts - Attach to your return your T5006 slips, Statement of Registered Labour-Sponsored Venture Capital Corporation Class A Shares, (or official provincial or territorial slips).

Line 418 - Additional tax on RESP accumulated income payments

You may have received an accumulated income payment from a registered education savings plan (RESP) in 2000. If so, you may have to pay an additional tax on all or part of the amount in box 40 of your T4A slip. Enter the amount from line 10, 13, or 16 (whichever applies) on Form T1172, Additional Tax on Accumulated Income Payments From RESPs. Get the Registered Education Savings Plans (RESPs) information sheet for more details about tax changes affecting RESPs.

Line 421 - Canada Pension Plan contributions payable on self-employment and other earnings

Enter the Canada Pension Plan contributions you have to pay, from line 310 of your return.

If you have to complete a return for the Province of Quebec, this line does not apply to you. Enter on your Quebec provincial return the Quebec Pension Plan contributions you have to pay.

Line 422 - Social benefits repayment

Enter the amount of social benefits you have to repay, from line 235 of your return.

Non-residents electing under section 217 - Enter only the amount of your Employment Insurance (EI) benefits repayment as calculated on the charts included with your information slip. Do not enter the amount of your Old Age Security pension or net federal supplements repayment.

Line 428 - Provincial or territorial tax

Deemed residents - This line applies to you only if you had a business with a permanent establishment in a province or territory in Canada in 2000. If this is your situation, complete Form T2203, Provincial and Territorial Taxes for 2000 - Multiple Jurisdictions, to calculate the provincial or territorial tax you have to pay (except for Quebec tax) on this income. Attach a copy of the form to your return.

Non-residents electing under section 217 - This line applies to you only if you had income from employment in Canada in 2000, or from a business with a permanent establishment in a province or territory in Canada in 2000. If this is your situation, complete Form T2203, Provincial and Territorial Taxes for 2000 - Multiple Jurisdictions, to calculate the provincial or territorial tax you have to pay (except for Quebec tax) on this income. Attach a copy of the form to your return.

Line 437 - Total income tax deducted

Enter the total of the amounts shown in the "Income tax deducted" box from all of your Canadian information slips. However, if you are subject to Quebec tax, do not include on this return any of your Quebec provincial income tax deducted.

If you are not subject to Quebec tax, but you had Quebec provincial income tax withheld from your income, include those amounts on this line. Attach your provincial information slips to your return.

Deemed residents - If tax was withheld from your OAS benefits (as shown in box 22 of your T4A(OAS) slip), remember to claim it on this line.

Non-residents electing under section 217 - If you received Old Age Security benefits in 2000, include the amount of non-resident tax shown in box 17 of your NR4-OAS slip. Do not include the amount of recovery tax shown in box 27 of the slip.

Line 438 - Tax transfer for residents of Quebec

If you have to file a return for the Province of Quebec, you may have earned income, such as employment income, outside Quebec during 2000. In that case, tax may have been deducted for a province or territory other than Quebec, even though you owe your provincial tax to Quebec.

You can transfer, to the Province of Quebec, up to 40% of the income tax shown on information slips issued to you by payers outside Quebec.

Enter on line 438 of your federal return and on line 454 of your Quebec provincial return the amount you want to transfer (up to the maximum). If the taxable income on your provincial return is zero, no transfer is necessary.

Line 440 - Refundable Quebec abatement

The Quebec abatement is provided under the federal-provincial fiscal arrangement, in place of direct cost-sharing by the federal government. It reduces your federal income tax, and may even give you a refund.

If you have to file a return for the Province of Quebec and you did not have a business with a permanent establishment outside Quebec, your refundable Quebec abatement is 16.5% of the amount on either line C or line 23 of Schedule 1, whichever applies.

If you have to file a return for the province of Quebec and you had a business with a permanent establishment outside Quebec, or you had a business with a permanent establishment in Quebec, use Form T2203, Provincial and Territorial Taxes for 2000 - Multiple Jurisdictions, to calculate your abatement.

Line 448 - Canada Pension Plan overpayment

If you do not have to file a return for the Province of Quebec and you contributed more than you had to, as explained at line 308, enter the difference on this line. We will refund the excess contributions to you, or use them to reduce your balance owing.

If you do have to file a return for the Province of Quebec, this line does not apply to you. Claim the excess amount on your Quebec provincial return.

Line 450 - Employment Insurance overpayment

If you contributed more than you had to, as explained at line 312, enter the difference on line 450. We will refund the excess amount to you or use it to reduce your balance owing.

Line 452 - Refundable medical expense supplement

• You have an amount at line 332 of your return.
• You were a deemed resident of Canada throughout 2000.
• You were 18 or older at the end of 2000.

• your employment income on lines 101 and 104 (other than amounts received from a wage-loss replacement plan) minus the amounts on lines 207, 212, 229, and 231 (but if the result is negative, use "0"); and
• your net self-employment income (not including losses) from lines 135 to 143.

You cannot claim this credit if the total of your net income (line 236) and your spouse's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is $27,804 or more. However, if you were separated because of a breakdown in your relationship for a period of 90 days or more that included December 31, 2000, you do not have to include your spouse's income when calculating this credit.

To claim this credit, attach a completed Schedule 10 to your return. You can claim both this credit and the amount for medical expenses on line 330 for the same expenses.

Line 454 - Refund of investment tax credit

If you are eligible for an investment tax credit (line 412), based on expenditures made in 2000, you may be able to claim a refund of your unused investment tax credit. This refund will reduce the amount of credit available to you for other years.

Calculate the refundable part of your investment tax credit on Form T2038 (IND), Investment Tax Credit. Attach a completed copy of the form to your return.

Line 456 - Part XII.2 trust tax credit

Enter the amount shown in box 38 of your T3 slip.

Line 457 - Employee and partner GST/HST rebate

If you deducted expenses from your income as an employee (line 212 or 229) or as a partner (lines 135 to 143) you may be eligible for a rebate of the GST/HST you paid on those expenses. Generally, you can claim this rebate if either of the following applies:

• your employer has a GST/HST registration number; or
• you are a member of a GST/HST-registered partnership, and you have reported on your return your share of the income from that partnership.

To claim this rebate, if you incurred the expenses as an employee, use the Employment Expenses guide. If you incurred the expenses as a member of a partnership, use the GST/HST Rebate for Partners guide. These guides list the expenses that qualify. They also include Form GST 370, Employee and Partner GST/HST Rebate Application, which you need to make your claim. Attach a completed copy of this form to your return, and enter on line 457 the rebate you are claiming.

Line 476 - Tax paid by instalments

Enter the total instalment payments you made for your taxes for 2000. In February of 2001, we will issue you either Form INNS1, Instalment Reminder, or Form INNS2, Instalment Payment Summary, that shows your total

instalment payments for 2000 that we have on record. If you made an instalment payment for your taxes for 2000 that does not appear on this reminder or summary, also include that amount on line 476.

Non-residents and non-residents electing under section 217 - If you disposed of taxable Canadian property in 2000, enter the amount of tax withheld on the sale.

Lines 484 and 485 - Refund or Balance owing

If your total payable (line 435) is less than your total credits (line 482) enter the difference on line 484. This amount is our refund. If line 435 is more than line 482, enter the difference on line 485. This amount is your balance owing. If the difference is less than $2, you do not have to make a payment and you will not receive a refund.

Line 484 - Refund

Although you may be entitled to a refund for 2000, we may keep some or all of it to:

• apply against any amount you owe us or are about to owe us;
• apply against certain other outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance and social assistance benefit overpayments, Immigration loans, and training allowance overpayments; and
• satisfy a garnishment order under the Family Orders and Agreements Enforcement Assistance Act.

If you pay your taxes by instalments (see page 58) you can attach a note to your return to ask us to transfer your refund to your instalment account for 2001.

Direct deposit

You can have your income tax refund, as well as your GST/HST credit and Canada Child Tax Benefit (CCTB) payments (including those from certain related provincial or territorial programs) deposited directly into your account at a financial institution in Canada. If you want your CCTB payments deposited into a different account, you will have to send us, either with your return or separately, a completed Form T1-DD(1), Direct Deposit Request - Individuals.

To start direct deposit, or to change information you already gave us, complete the section called "Direct deposit - Start or change" on page 4 of your return.

You do not have to complete this area if you already have direct deposit service and the information you already gave us has not changed. Your direct deposit request will stay in effect until you change the information or cancel the service.

If you are changing the account into which we deposit a payment, do not close the old account before we deposit the payment into the new account. If your financial institution advises us that you have a new account, we may deposit your payments into the new account. If we cannot deposit a payment into your account, we will mail a cheque to you at the address we have on file.

If you need help to complete the direct deposit information on page 4 of your return, or to cancel the service for one or more of these payments, contact the International Tax Services Office.

Line 485 - Balance owing

Your balance is due no later than April 30, 2001. If you or your representative have a bank account at a financial institution in Canada through which you can make a payment, you or your representative can make your payment in several different ways:

• You may be able to pay by telephone, Internet banking, or automated banking machine. To find out, ask your financial institution.
• You can make your payment free of charge at your financial institution in Canada. To do so, you have to use the remittance form you received in your tax package, or Form T7DR(A) which you can get from us.
• You can attach to the front of your return a cheque or money order made out to the Receiver General, but only if you are filing that return. Write your social insurance number or temporary taxation number on the back of your payment to make sure we credit it properly. Enter this amount on line 486. Do not send cash with your return.
• You can mail a cheque or money order, with the remittance form you received in your tax package (or Form T7DR(A) which you can get from us) to: Canada Customs and Revenue Agency, P.O. Box 9659, Station T, Ottawa ON K1G 6L7. Write your social insurance number or temporary taxation number on the back of your payment to make sure we credit it properly.

If you or your representative do not have a bank account at a financial institution in Canada, you or your representative can make your payment using:

• an international money order drawn in Canadian dollars;
• a bank draft in Canadian funds drawn on a Canadian bank (available at most foreign financial institutions); or
• a cheque drawn in the currency of the country in which the financial institution is located. We will use the currency rate in effect at the time of cashing your cheque.

Making a payment arrangement - If you cannot pay your balance owing on or before April 30, 2001, you can make a mutually acceptable payment arrangement by contacting your tax services office. If you do not know your tax services office, call the International Tax Services Office. We will still charge daily compound interest on any outstanding balance starting May 1, 2001, until you pay it in full.

Tax Tip
Even if you cannot pay all of your balance owing right away, you should still file your return on time. Then you will not have to pay a penalty for filing your return after the due date. See "What penalties and interest do we charge?" on page 10 for details.

Date modified:

2002-11-30