The German Tax Authorities have required the filing of German Tax Returns for the tax years 2005 and onwards for Canadian taxpayers who have received pensions from Germany. The taxpayers will receive the equivalent of a “Notice of Assessment” (Bescheid) from the German Tax Authorities. In many cases, there will be tax owing to the German Tax Authorities. This in spite of the fact that the German Pension income has already been declared by Canadian taxpayers on their Canadian Income Tax Returns prepared and submitted during 2005-2009, and taxes paid to Canada Revenue Agency (CRA).  On the surface, this appears to be duplicate taxation. However, a portion or all of the tax paid to Germany may be recoverable from CRA by virtue of the tax treaty between Canada and Germany. The method to recover from CRA the tax paid to Germany is known as a Foreign Tax Credit using Forms T2209 (Federal) and T2036 (Provincial). It is important to note that the Foreign Tax Credit must be applied for separately for each taxation year. In other words, CRA will not accept a claim for Foreign Tax Credits in 2010 that pertains to the years 2005-2009.

Services
Gary Schein is a Certified General Accountant registered with the Certified General Accountants of Ontario to provide Personal Income Tax Preparation services to the public. I have over 25 years of experience preparing and filing personal tax returns including sole proprietorships such rentals and other small businesses. As a professional tax practitioner, I have access to in-depth tax regulations through CGA Canada.

Furthermore, I have experience in preparing the T2209 and T2036 filings required by CRA to recover foreign tax credits pertaining to German taxation. The forms are available on the CRA web-site, but there is a significant amount of information that needs to be analyzed to complete these forms. Essentially my services entail a review of the taxpayer’s Canadian Income Tax returns and German Notice of Assessments for the periods 2005-2009, followed by preparation and filing of the required foreign tax credit forms.

I would be pleased to discuss how I can assist taxpayers with filings and the fees that would apply. Please don’t hesitate to contact me.

Gary Schein MBA, CMC, CGA
Certified General Accountant
Burlington, Ontario
Telephone: 905-630-1607
Fax:  888-501-1156
Email:  gpjschein@sympatico.ca