Tax filing question for Non-resident Canadian

  1. #1

    Join Date
    Jan 2019

    Tax filing question for Non-resident Canadian

    Hi guys,

    hope you are all doing well.

    Have a question regarding Canadian tax filing for my sister, who has been living in Hong Kong for 8 years now.

    Here is the situation:
    - she still has Canadian citizenship and Canadian passport.
    - she went back to Hong Kong in 2010, thinking she would come back, but she ended up staying there, she DID NOT declare non-resident status but she wants to do it now.
    - she DID file her taxes in 2010 before she left
    - she does NOT have any properties or assets in Canada, not even a bank account
    - she only renewed her driver license once, which is still in effect, but not health card, so she has no health card.
    - she does NOT have spouse/common law here in Canada
    - she has absolutely NO source of income in Canada.
    - she has been working full-time in Hong Kong all these times and been living with grandma.
    - she has a bank account in Hong Kong and all her income for these past 8 years was from source in Hong Kong

    Now what i am wondering is:

    - is she considered a non-resident in the eyes of the CRA and immigration? even tho she never declared non-residency when she left?

    - if she declares now, will CRA chase her back for any taxes? is her income in Hong Kong taxable?

    - She does plan to come back to Canada in the future, but she hasn't "informed" Canada she was non-resident all these times. is it a good idea to declare now? or should she just wait til she wants to come back? suggestions?

    thank you so much for the help in advanced!


  2. #2

    Join Date
    Jul 2018

    She can still declare non-residency by filing a departure tax return for the year that she left. If she was not liable for taxes during that period, there would be no penalties. Although I think she would face penalties for not filing a Form T-1161 List of Properties by an Emigrant of Canada. Obviously, speak to an accountant or tax lawyer for a definitive answer, but this is my understanding as a non-resident Canadian myself.