Canadian married to foreigner...tax question?

Question

My spouse still resides abroad as we are proceeding through the immigration sponsorship. After filing my tax return, Canada Revenue requires that I pay $ back for GST credit for the period I was married (July '07 to date). Why does my GST amount change if my spouse is earning abroad, and did not file a return? Just curious..

Answer 1

Your entitlement to receive a GST credit is based upon total family income.  Although your spouse earns income outside of canada, that income boosts your family income over the level that allows you to receive GST.

Since your marriage, your family income is now too high.  This is why you must repay the GST you received from the time you were married.  Between tax treaties and immigration information, your spouse didn't need to file taxes in Canada for the Canadian government to know their income earned.

I hope this clears things up for you.

Answer 2

It is likely that you filed your cdn tax return claiming the GST credit as a cdn couple, i.e, considering your spouse as a cdn resident although in fact that your spouse is a non resident and therefore would not be eligible for the gst credit.  In other words, your spouse did not buy things in Canada with GST charged and pay cdn taxes, and should not be entitled to the GST credit which is meant for cdn taxpayers with lower income (not for non residents not reporting income in Cda.)

The GST is a tax that you pay on most goods and services sold or provided in Canada.  You must be a resident of Canada, for income tax purposes, and age 19 or older to get the GST/HST credit.

You can get the GST/HST credit for your spouse or common-law partner as long as he or she is also a resident of Canada, for income tax purposes, at the beginning of the

month in which a payment is scheduled.