Canadians/Americans PLEASE help!!

Did you get any response?

even selling property "at arms length" can be considered "evasion" so better to sell for cash period. clean.

we can't escape paying taxes..no way, no how, even if we live over here. Canada must have very different laws.

Grant me the senility to forget the people I never liked,the good fortune to run into the ones I do,and the eyesight to tell the difference.

Well it's hard to answer this question because the answer depends on many things. I am only familiar with the Federal Income tax forms, as for the laws, they change relatively quick and I never bother to know them all until I need them.

Any body knows an expatriate tax consultant in Mississauga or Toronto. I have been in Qatar since 3 months and need to go back and get things finalized to have a Non resident status.

I have a condo in Calgary with a mortgage and a Canadian bank account. My condo is rented at arms length so no problems and I am still considered a non-resident.

I recommend talking to an accountant who does expat taxes if your concerned. It's not very expensive, a few hundred dollars, and if Revenue Canada determines when you return that you weren't a non-resident they'll bend you over. You'll have to pay back taxes+interest.

You'll have to file a '07 Canadian tax return anyway for the time you work in Canada until you leave, so you might as well file as a non-resident at the same time.

Daaaarrrrrruuuudddddeeeeeee

Right here bro ! Howw youu doinnnn

Good morning to you too :D

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" God allows life to be rocky. His challenge is not to let the rocks grind you into dust, but to polish you to become a brilliant gem. "

Whereeeeeeeee r u pppppaaaaaaaaaaaal

Goooooooooooood Morning Every Oneeeeeeeee

You're one of those lucky ones who owed no money out here. i do and that's why i have to keep my bank account out here. there's just the question of the leased car.

STACEY...THANK YOU so much for the detailed post. people like you are hidden angels. your help is amazing!!

I left a year and a half ago and haven't paid a penny to income tax. When I go back I won't need to worry because I don't own any property or have any debts in Canada. The only thing that's a problem is that all my years of working here will not be included in my Canada Pension.

Hi TravelGirl,

I've researched this at length and spoken to a tax consultant, so I can offer you a few tips. As Canuk noted, you actually don't need to file anything prior to leaving; you can simply leave and cease filing tax returns. If you choose to do so, you need to be absolutely certain that you will not be assessed as a resident or you could be on the hook for back taxes, penalties, etc.

That being said, it's important to understand HOW the Canada Revenue Agency (CRA) determines residency. They will assess residency based upon your actions as well as your intent. First are primary residential ties:

(a) dwelling place (or places),

(b) spouse or common-law partner, and

(c) dependants.

Having even ONE of these three will ALMOST ALWAYS indicate residency (by showing intent to return).

They will also look at secondary residential ties. This can include, but is not limited to:

a) personal property in Canada (such as furniture, clothing, automobiles and recreational vehicles),

(b) social ties with Canada (such as memberships in Canadian recreational and religious organizations),

(c) economic ties with Canada (such as employment with a Canadian employer and active involvement in a Canadian business, and Canadian bank accounts, retirement savings plans, credit cards, and securities accounts),

(d) landed immigrant status or appropriate work permits in Canada,

(e) hospitalization and medical insurance coverage from a province or territory of Canada,

(f) a driver's license from a province or territory of Canada,

(g) a vehicle registered in a province or territory of Canada,

(h) a seasonal dwelling place in Canada or a leased dwelling place.

(i) a Canadian passport, and

(j) memberships in Canadian unions or professional organizations.

Having one of those ties will not necessarily keep you as a resident (e.g. not feasible to dispose of Canadian passport), but if you meet a few of them, your case for ceasing residency is weakened.

Last but not least, other factors such as keeping magazine subscriptions or a safety deposit box can also work against you. In addition, you'll want to be careful about how many times you return to Canada, even for visits, as they may consider that to be indicative of a tie to the country.

The following link contains the information listed above as well as much more:

http://www.cra-arc.gc.ca/tax/nonresidents/individuals/leaving-e.html#b

You'll want to pay special attention to IT-221, Determination of an Individual's Residence Status. As well, you may want to check out Form NR73, Determination of Residency Status (Leaving Canada) to test yourself against their list. I should note, however, that you are NOT REQUIRED to fill out an NR73 before you leave Canada and may not want to do so unless you are asked to submit one (as recommended by my tax consultant).

And my last piece of advise, talk to a reputatable tax consultant before leaving. His/her advise could save you a lot of stress come tax time.

Hope this helps!!!

Stacey

Hi,

Different Canadian Expats will tell you a different answer. I have had this argument wiht many a friend. I filled in a form to declare non-residency. Friends i know did not do that, they just left and don't file taxes. My understadnign is that GENERALLY, it comes down to intent. If you leave intending to come back, ie have a leave of absence from your job, etc then they can ding you. I think you would be best to research this with a tax lawyer or at the very least a financial advisor who specializes in expats such as the recommendation above.I ahve a finiacial advisor from out west. He works wiht Canadian Investment Consultants. Their website is www.cic88.com. His name is Pervez Patel.

I see oyu are a journalist. Are you working wiht Al Jazeera????

HI,

I just remembered my accountant has a website also:

http://www.expatriate.com

His name is Cam McIntosh and will be able to answer all your questions.

good luck

Montreal...and thank you for taking the time to reply to my post :)

Where are you from? I have a good accountant in Calgary who can help you.