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Do I have to re-file non-resident status after I took a new driver license from ICBC?

Mar 17, 2024
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TLDR: I got a Driver License in BC in 2023 when I stayed in Canada for 3 weeks, in between my stint living in the US 2019 - 2023 which I declared non-resident to the CRA, and have since moved to Asia starting late 2023 until now. Is there any impact to my non-residency status since I gotten a driver license? Yes I am Canadian and have a Canadian passport.

I lived and worked in the US from 2019 until 2023, and have declared non-resident when submitting taxes for 2019 tax year. I had to get a driver license in California from scratch, so at some point I had 2 licenses. But I went to ICBC to renew my license at some point and they took it away when I was stupid enough to tell them I also have a US license.

I have since now moved to Asia. And the country I moved to does not have a driver license exchange program with the US. Instead they do have an exchange program with most Canadian provinces. So what I did was I went back to ICBC and exchanged my US license to a BC one. When doing so they asked if I am moving back, and I knew I had to say yes or I am not getting that license. As part of that exercise I also stayed in Canada for about 3 weeks in between the US and moving to Asia. So in a way, I was 'resident of Canada' for 3 weeks in Q4 2023, if one would even count that.

Once I got to Asia as part of the driver license exchange program I did have to give up my BC driver license. They might even have some way to tell Canada that I have exchanged my license. Not sure how exactly the backend of their reciprocal agreement works.

In this case, do I have to refile non-resident status with the CRA? My concern is if they are gonna say I'm resident of BC starting 2023 and have tax implications for me for late 2023 -> 2024. Also, some stuff in Canada requires over 3 years of non-residency? If they count 2023 as residency and do a restart on me, just in case I move back to Canada in the next year or two, I'm not too sure that'll also be unfavorable for me tax-wise, especially if I move assets back into Canada that have appreciated in the interim.

Would be grateful if anyone have any insight onto this and maybe if I need to do a 2023 tax return to redeclare non-residency with CRA for the '3 weeks of residency' that I had in BC. Thanks!
 

rajaram25

Newbie
Dec 3, 2019
4
0
Vancouver
I know this is an old thread and I hope you got the answer you looked for. Wondering if you would have an idea on my below query? Thanks in advance.

My case is slightly similar (on the lines of communication between the other country and CRA) as my license is expiring in May 2025 and I am not a resident of Canada. Currently residing in the middle east. I have not filed as a non resident yet to CRA but eventually I will. Not sure if I will be returning to Canada in the next 3 years. I dont want to lose the 3 years grace period for BC driver license renewal. However, if I file as non resident to CRA for tax purposes then will I be able to renew my license anytime during the next 3 years? Will CRA comeback to me asking me to surrender the BC driver license to continue non residency else I shall be considered resident for tax purposes and ask me pay tax on my worldwide income?
 

steaky

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Nov 11, 2008
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I know this is an old thread and I hope you got the answer you looked for. Wondering if you would have an idea on my below query? Thanks in advance.

My case is slightly similar (on the lines of communication between the other country and CRA) as my license is expiring in May 2025 and I am not a resident of Canada. Currently residing in the middle east. I have not filed as a non resident yet to CRA but eventually I will. Not sure if I will be returning to Canada in the next 3 years. I dont want to lose the 3 years grace period for BC driver license renewal. However, if I file as non resident to CRA for tax purposes then will I be able to renew my license anytime during the next 3 years? Will CRA comeback to me asking me to surrender the BC driver license to continue non residency else I shall be considered resident for tax purposes and ask me pay tax on my worldwide income?
You can always make a phone call to find it out.
 

Copingwithlife

VIP Member
Jul 29, 2018
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I know this is an old thread and I hope you got the answer you looked for. Wondering if you would have an idea on my below query? Thanks in advance.

My case is slightly similar (on the lines of communication between the other country and CRA) as my license is expiring in May 2025 and I am not a resident of Canada. Currently residing in the middle east. I have not filed as a non resident yet to CRA but eventually I will. Not sure if I will be returning to Canada in the next 3 years. I dont want to lose the 3 years grace period for BC driver license renewal. However, if I file as non resident to CRA for tax purposes then will I be able to renew my license anytime during the next 3 years? Will CRA comeback to me asking me to surrender the BC driver license to continue non residency else I shall be considered resident for tax purposes and ask me pay tax on my worldwide income?
Taxes = Federal Jurisdiction

Driver’s License = Provincial Jurisdiction
 
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canuck78

VIP Member
Jun 18, 2017
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I know this is an old thread and I hope you got the answer you looked for. Wondering if you would have an idea on my below query? Thanks in advance.

My case is slightly similar (on the lines of communication between the other country and CRA) as my license is expiring in May 2025 and I am not a resident of Canada. Currently residing in the middle east. I have not filed as a non resident yet to CRA but eventually I will. Not sure if I will be returning to Canada in the next 3 years. I dont want to lose the 3 years grace period for BC driver license renewal. However, if I file as non resident to CRA for tax purposes then will I be able to renew my license anytime during the next 3 years? Will CRA comeback to me asking me to surrender the BC driver license to continue non residency else I shall be considered resident for tax purposes and ask me pay tax on my worldwide income?
You need to contact CRA asap and have them determine if you are a non-resident.