Does anyone know the procedure of applying for non-residenship in Canada?

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  1. #1

    Cool Does anyone know the procedure of applying for non-residenship in Canada?

    I've already moved to Hong Kong. Apparently I did in a rush. Long story. So anyone knows what the procedure is to become a non-resident Canadian in order to be exempted from taxation? Can I do it from HK? THANK YOU.


  2. #2

    Join Date
    May 2004
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    473

    Simple, when you file your final income tax return, just check the box about not living in Canada, and put the date when you left. Voila.


  3. #3

    Really? I thought that was a separate application. Yo!


  4. #4

    Join Date
    Dec 2005
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    I'm afraid it's not that simple. You cannot avoid Canadian income tax just by not living in Canada. Legally, you are obligated to pay income tax on worldwide income unless you have applied for and been approved for non-resident status. Basically, to qualify you have to be out of the country for at least 2 years and show that you have 'cut ties' with Canada, including not having a principal residence, a Canadian driver's license, and a number of other things. You can read all about it in the Canada Revenue Agency's website: www.cra.arc.gc.ca/menu-e.html
    Click on 'non-resident taxes' on the menu, and then on 'non-resident forms' to see how you qualify. It's a pain to apply but well worth the tax dollars you'll be saving if you work in HK for 2 years or more.


  5. #5

    Join Date
    Apr 2005
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    uh oh... i've been here for 11.5 years and have never applied NOT to pay taxes in canada.....

    i asked my mum's tax person, he said not to worry, it would be easy enough to prove that i wasn're resident if it ever came time for it....

    maybe i should do something about it now....


  6. #6

    Join Date
    May 2004
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    I'm with Carang on this. Unless I missed it, the CRA's form NR74 isn't legally required, and even they say that is only for their "opinion".

    Besides, its easy to prove residency in HK that is not for the purposes of tax-evasion. Unless you're still collecting your GST rebate cheques, going back for a checkup on your healthcare card, your C$ bank account is growing or your contributing to your RRSP, etc. I personally don't think there's any danger of a big tax bill from the CRA.



    Quote Originally Posted by cannet:
    I'm afraid it's not that simple. You cannot avoid Canadian income tax just by not living in Canada. Legally, you are obligated to pay income tax on worldwide income unless you have applied for and been approved for non-resident status. Basically, to qualify you have to be out of the country for at least 2 years and show that you have 'cut ties' with Canada, including not having a principal residence, a Canadian driver's license, and a number of other things. You can read all about it in the Canada Revenue Agency's website: www.cra.arc.gc.ca/menu-e.html
    Click on 'non-resident taxes' on the menu, and then on 'non-resident forms' to see how you qualify. It's a pain to apply but well worth the tax dollars you'll be saving if you work in HK for 2 years or more.

  7. #7

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    Dec 2005
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    Carang, no need to panic. If you have been in HK for so long, you shouldn't have any problem proving it with rental agreements, bills in your name, and such. But, as I mentioned, you have to show that during this period you were away, you also 'cut ties'. Granted, the CRA form is not required, but it will alert you as to what are deemed 'ties'. Someone I know (a non-res) was hit with a huge back tax after he returned to Canada when it was discovered he maintained a principal residence (not a rental) while in HK. So it is a good idea to find out if you meet the requirements for being a non-res before you leave. It gets more complicated if you own rental properties (as I did) as you have to have a property manager send 25% of the rent to CRA each month.
    I'm sure there are many Canadians who worked out of the country who have never paid Canadian taxes or applied to be a non-res as it's hard for the CRA to find out. I'm not suggesting of course that anyone do the same. Let your conscience be your guide. I myself didn't want to take the risk.


  8. #8

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    well... i did maintain a canadian driver's licence for a while... but now that's been changed to a HK one...

    other than that... i was only 22 and straight out fo uni, so no property or anything was in my name...

    i really don't think that i'll have a problem...i'll also be able to provide all my tax documents for here

    and my marriage cert... i was married here and to a local..
    and my son's birth cert... he was born here....

    and the fact that i've actually been here for 1/3 of my life....argh! has it been that long???


  9. #9

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    Dec 2005
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    You've got nothing to worry about. You have plenty of proof you've been out of Canada for at least 2 years, and you have no ties left to Canada. And, as Fly said, you aren't required to fill out the CRA form. You don't have to deal with it until you are back living in Canada.


  10. #10

    My case is pretty similar to Carang's except I've only been working here for almost 2 years (in September) I still have my driving license, bank accounts, credit cards and I know what needs to be surrended- THE health card. Other than these plastics, I have no 'ties' in Canada at all. I've downloaded the form someone suggested, the NR73, and have tried to comprehend the first 10 pages (of 64) of 'General Income Tax and Benefits Guide"...and I really hope someone could just pop out and tell me exactly what to do.


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