What issue may happen if we have been reported?
What happened when you went through border controls upon arrival at the PoE when you returned to Canada is important. In particular, whether or not you were issued a 44(1) Report for Inadmissibility and Departure Order is the key question.
You should know whether you were issued any such report. The procedure is fairly formal and the Report and Departure Order would be in writing and physically delivered to you. It would specify what it is. What the grounds are. And describe the right of appeal.
If you were not given any such report when you entered, you should be OK now. As long as you do not leave. As long as you do not engage in any transaction with CBSA or IRCC until you have been physically present here a full two years. Once you have been present a full two years, that will CURE the breach of the Residency Obligation.
If you were given such a Report, that would usually be followed (while you are still at the PoE) by a second interview, and the officer conducting the second interview (which might be by telephone or in person) is the one who makes the decision about whether you lose PR status.
Just because the PoE examination resulted in you being allowed to enter Canada does NOT indicate whether you were issued a Report or not. Even if issued a Report, the PR will then still be allowed to enter Canada.
So the important thing to know is whether you were given some paperwork at the time you returned to Canada, and if so, what that paperwork says.
If you did get such a report, to have any chance of staying in Canada (let alone any chance of becoming a citizen) you need to appeal and do that within 30 days of the day you were given the Report.
My family and I are a PR, we spent 4 years and 5 moths outside Canada. We are currently in Canada and the PR card will expire after 7 month. We have no intention to renew the PR card however we would like to stay in Canada for 3+ years and then apply for the citizenship. Will be there any problems the time we submit the application?
Assuming you were NOT reported: if you stay in Canada for three full years, the fact that you previously failed to comply with the Residency Obligation will NOT affect your eligibility for citizenship. It may be a factor that invites some closer scrutiny of your application, but so long as you meet the requirements it will NOT affect the decision made.
Applying for citizenship without a currently valid PR card likewise. There is no requirement to have a currently valid PR card so not having one will NOT affect your eligibility for citizenship. But not having a valid card may be a factor which triggers some further inquiries or scrutiny.
You don't lose your status automatically if you were reported, you'll have a hearing at IRB first.
NO IRB hearing is necessary, or even common, to lose PR status for failing to comply with the PR Residency Obligation.
In particular: the usual and ordinary process at a PoE pursuant to which returning PRs are examined regarding compliance with the PR Residency Obligation can result in a decision that terminates the individual's PR status. In particular, if there is a referral to Secondary, and in the course of the examination an officer ascertains the traveler is a PR in breach of the RO, that officer issues a 44(1) Report for Inadmissibility based on a breach of the Residency Obligation, and then there is a further interview with another officer who determines (1) whether the first officer's decision is valid in law (this is simply about counting days in Canada in the previous five years), and if that officer concludes the report is valid in law, the second officer then determines (2) whether there are sufficient H&C reasons for allowing the PR to keep PR status despite the RO breach, and if this second officer (technically the "Minister's Delegate," although practically and typically just another CBSA officer with appropriate authority to act as the Minister's Delegate) concludes the report is valid in law and there are NOT sufficient H&C reasons to allow the traveler to retain PR status, that officer issues a Departure Order (also called a "Removal Order").
The interview with the second officer can be done by telephone. Sometimes, but not usually, the interview is postponed (such as when a second authorized officer is not available), such that the PR will only be issued the 44(1) Report and then later contacted for an interview with a Minister's Delegate. Once the Report is issued, days in Canada after that date do NOT count toward RO compliance.
In any event, the usual process results in a decision, then and there while the PR is still at the PoE, that terminates PR status. But it does not take effect immediately. So the PR is allowed to enter Canada and the PR has thirty days in which to appeal the 44(1) Report. If the PR does not timely appeal, the Departure Order becomes enforceable and the individual NO LONGER is a PR. If the PR appeals, the PR's status is PENDING the outcome of the appeal. The PR must follow through and WIN the appeal to keep PR status.
By the way:
-- appeals are heard by the IAD (Immigration Appeal Division)
-- PR inadmissibility for other grounds (criminality, misrepresentation, security) is a different procedure which requires a more formal hearing