becoming a non resident on PR

[StrongBad]

Hi All,

My husband is a PR in Canada and my son and I are Canadian citizens. My husband has completed 1.5 years in Canada as a PR. We don’t own any property in Canada. We will be moving to the UAE because I have been offered a 2 year contract to work at a school (not a Canadian company). It would be helpful if anyone can answer the below questions.

1. If we become non-residents of Canada and my husband and I both start working in the UAE will we have to pay taxes on the income earned?
2. From my understanding, if my husband stays with me (Canadian citizen) outside Canada, he will meet the PR requirement to keep it valid. Does this change if we both become non-residents?
3. If we come back to Canada after the completion of the 2 years contract, will we be considered to be residents of Canada during those 2 years?
4. If we are considered to be residents during the 2 year contract period would we be entitled to receive the Canada Child Tax Benefit and the Universal Child Tax Benefit?

Thanks

 

[Leon]

1. You can actually declare yourself as a non-resident on your next tax return after you moved. They shouldn't bother you again after that.

2. Becoming non-resident for tax purposes doesn't change anything. His PR will still be protected.

3. No, you could ask CRA but I assume you would write something about when you moved to Canada again on your next tax return.

4. I believe you have to be living in Canada to get the child tax benefit.

 

[toby]

Hi All,

My husband is a PR in Canada and my son and I are Canadian citizens. My husband has completed 1.5 years in Canada as a PR. We don't own any property in Canada. We will be moving to the UAE because I have been offered a 2 year contract to work at a school (not a Canadian company). It would be helpful if anyone can answer the below questions.

1. If we become non-residents of Canada and my husband and I both start working in the UAE will we have to pay taxes on the income earned?

Leon is right that you can declare yourselves non-residents for tax purposes, but if you have major financial ties to Canada, CRA will still require you to file a Canadian tax return despite your residing offshore. Major ties are a house available to you throughout the year, or a dependent child in Canada, or more than 183 days in Canada. There are other, secondary ties, but they are not critical unless you have too many of them. Look in the CRA website for a definition of non-resident for tax purposes. If you want to be sure, ask CRA for a ruling.

If CRA considers that you left Canada with the firm intention of returning, they may declare you Canadian taxpayers.

2. From my understanding, if my husband stays with me (Canadian citizen) outside Canada, he will meet the PR requirement to keep it valid. Does this change if we both become non-residents? No, time spent with a Canadian-citizen spouse abroad counts toward the PR quota, as Leon says.
3. If we come back to Canada after the completion of the 2 years contract, will we be considered to be residents of Canada during those 2 years? Depends, as stated in 1.
4. If we are considered to be residents during the 2 year contract period would we be entitled to receive the Canada Child Tax Benefit and the Universal Child Tax Benefit?
I'd guess that if you are paying tax, you are entitled to these benefits, but I also know that the less time you spend in Canada, the fewer benefits you get. A quick session with a tax-preparation program like Turbo-tax shows you the impact.



Thanks

 

[metaopsis]

My wife's PR card renewal

Hi Everyone!

I am writing on behalf of my wife.

My wife holds a PR card which will expire next month. We are now here in Canada to renew her PR. Prior to our marriage, my wife was religiously coming to Canada pay her taxes until the time she sets up her own company in 2008, she didn't visit Canada.

To be honest, my wife didn't have any plans to renew her PR card because marrying was not part of her plan until we got married. I have known her for more than 15 years already! I didn't even know that she is a PR of Canada until she told me. We discussed the matter thoroughly about her PR status and we came into consensus that we will move to Canada and start our new life here, sell our assets and put up our own business here.

By the way, I forgot to tell you that we are here now and just arrived yesterday to renew her PR card. Upon arrival, we were asked by the immigration officer to go to the second screening and there my wife was told that she will lose her PR card which will expire next month.

What shall we do? Is her busyness in her because could be an excuse for not religiously coming to Canada as stated in the rules and regulation? Is the Canadian government really that strict and legalistic that one has to follow to the letter the R&R in having a Canadian PR card.

We plan to go to the immigration tomorrow to renew her PR card. Will she have a chance to renew her PR card? I told her that we will be honest. The reason why she wants to renew her PR card is to start our life together here in Canada. Anyway, I told her that if it's not renewed, so be it. maybe GOD has another plan for us.

I will appreciate feedback from the other members of this forum.

Cheers!