Like Tree5Likes

Claiming Non-Residency in Canada - Would appreciate your opinion

Closed Thread
Page 3 of 5 FirstFirst 1 2 3 4 5 LastLast
  1. #21
    Quote Originally Posted by ballboy:
    Hello 7jai,

    I am running into the same issue as you and would be grateful if you could advise how did it turn out for you. Did you give your HK address to them and did CRA reply you with a confirmation letter that you are now officially a non-resident?

    FYI, I left Canada in Nov 2015. I filed a tax return for tax year 2015 since I worked and lived in Canada before Nov 2015. I have been working in HK since Jan 2016, although I made a visit back to Canada during May 2016.

    Now I am looking into my tax issue since April 30, 2017 is coming soon and it's supposed to be the deadline for Canadian tax year 2016.

    Very confusing issue, hope you can shed some light. Thanks in advance!
    Either you inform them via a letter or, if they've sent you the tax form in the mail, then indicate on that form that you're a non-resident and you have no income to declare.

    Did you inform your healthcare provider that you've left the country? It's also good to do.

  2. #22

    Ballboy,

    Keep in mind, Canada's tax "rules" (I don't call them law because I am not a lawyer and I cannot address Canada's tax laws) differ from U.S. tax conditions. Canadians are governed by their residence, i.e. where they live. That's why declaring your non-residency is vital in terms of not paying Canadian high taxes. In your tax return for the partial year when you were still living and earning in Canada, you have to report your earnings for that year like any other year. Even if you worked 10 days you report what you have earned for those ten days. What CRA wants is you pay your tax owed to them. Once you pay what you owe for that year, you declare on the tax form that you are no longer a resident of Canada, you will not need to file any more tax returns until you repatriate to Canada to live for more than 6 months (182.5 days? not sure how many exactly). You can visit Canada just like any other visitor except that you hold a Canadian passport (I assume). As long as you don't stay in Canada longer than 6 months, then you are a "visitor" not a resident.

    I did that for 10 years out of Canada. The reason why I say CRA want their taxes paid is that even though I looked for work at my own expenses I couldn't claim any deduction, they clawed back every penny they could for that year. Come to think of it, I think I had to pay taxes on my out of Canada income for that year. Not sure why.

    Bottom line: make sure you declare non-residence immediately from now forward. I don't know about counting back to the year after you decided to stay in HK. If the CRA didn't know you were not living in Canada, to them you WERE living in Canada and therefore would have to pay Canadian taxes. If you paid 2015 taxes, you are in the clear. As for 2016, you should check with CRA. Seeing that April 30 is coming up quickly, if you are not sure and if your HK income was not that much (with the exchange) you might just want to bite the bullet and pay them. But if CRA tells you you have a clear break as of Jan 2016, then listen to what they say.

    Good luck.

    shri and ingipingi like this.

  3. #23

    Join Date
    Jun 2007
    Posts
    35

    i have question too which is too troubling.

    i figure out i have not declare non resident status....ya, damp it. 10yrs ago since. so i have not worked for so many years...non any property own.

    i wonder if i should go declare now or just leave as it is.
    i saw in other forum that people didnt declare...and want go back Canada for living, they just glab a lawyer & write a letter to prove that they have nothing deal back...no link.
    how is that


  4. #24

    No need for a lawyer. Just declare you were a non-resident when you return. Or send them a letter.


  5. #25

    Join Date
    Jun 2013
    Posts
    564

    If you still have bank accounts in Canada, you should inform the banks so they will deduct the withholding tax from the interest income you earn, otherwise you would have interest income to declare. Also you should surrender your OHIP or other provincial health benefits card.

    Some people even surrender their driving licence but I don't think its necessary. And you should not own a vacant property (having an investment property being let out is okay), as that would increase your likelihood of being deemed a tax resident.

    Last edited by kma88; 07-04-2017 at 10:48 AM.

  6. #26

    Join Date
    Apr 2017
    Posts
    10

    So I just called CRA, which is quite confusing the agent himself.

    At first he told me to fill in Form NR 73, which immediately is a red flag to me. I told the agent I did not want CRA to "determine" my residency status, but rather I wanted to simply inform you I became a non-resident.

    Agent then said if that's that case I am so sure I became a non-resident, I can simply write CRA a letter to explain my date of departure.

    Agent also said if I did my tax return on the year I left, then I am good. And if I didn't make any Canadian money after I left, there is no need for me to file a tax return.

    So I guess I simply have to write a letter to the same address on the NR 73 form. All this will do is that I will become non-resident on CRA system with my date of departure entered.

    Question is I am not sure what's the implication coz I left end of 2015 and it is mid 2017 now. Anyone can shed some lights?


  7. #27

    There are no implications. Your tax status is based on your residency, not what you haven't declared. If I'm not mistaken, one can file a tax return up to 5 years late, so no issues there. Just submit the letter and you're fine.


  8. #28

    Join Date
    Apr 2017
    Posts
    10
    Quote Originally Posted by 7jai:
    Hi all,

    Just wanted to provide an update on my initial thread question.

    I had called the CRA and they had told me to simply write them a letter indicating my full name, SIN number, new address, and indicate that I am a non-resident, and the exact date of my departure. On the letter, I should also remind the gov't to not ask me for any future tax returns (they said sometimes they tend to still send people letters telling them to file for their taxes, even though they are non-residents).

    In any case, hope this information helps others! Cheers!
    "I'm just not sure if I should post July 2013 as my departure date, or Jan 2014 as my departure date. I physically LEFT Canada July 2013..... However I didn't decide to stay in Hong Kong for good until Jan 2014."

    Dear 7jai, would you please advise which date did you put as your date of departure on your letter to CRA? July 2013 or 2014? Thanks.

  9. #29

    I don't think you need to agonize over what date you will TELL CRA when you departed. It seems that you were in Canada in 2013 and I assume you had income that year. Regardless of where you were the rest of the year, you had to pay whatever you made in Canada for 2013 anyway. I assume you filed your income tax for 2013 already. So that's done.

    I don't know why 2013 and 2014 is making a difference to you. Look at the tax return as a piece of paper that does not think. All it matters to that piece of paper is what is written on it in black and white. CRA won't need to know that when you left Canada you hadn't decided to stay for good in HK or not.

    I would advice you to do it asap and get this over with. It is not worth the delay. I know someone who hadn't done it and lived miserably for over 30 years fearing over the fact that he hadn't declared non-residency. At the end f it it wasn't svn that big a deal. Everyone else suffered with the result of that misery.


  10. #30

    Join Date
    Apr 2017
    Posts
    10

    I think you are absolutely right. Better to get it done and see what happens.

    The issue is that I left Canada in Nov 2015. I did file the tax return for year 2015, but on that tax return I said I was a resident up until Dec 31, 2015, but I actually left Canada in Nov 2015 already.

    So now if I inform CRA that I became non-resident in Nov 2015, that is essentially saying I made some slight mistake on my 2015 tax return. Because I am supposed to declare I was resident from Jan to Nov 2015, and then departed Canada in Nov 2015 and subsequently became non-resident in Nov 2015. If I did that correctly in my 2015 tax return, I wouldn't even need to submit a separate letter now to declare I became non-resident in Nov 2015 after I left.

    That's why I am a bit hesitated if CRA will stir up any inconsistency issue.