Can I apply for citizenship while being 5 years of deemed non-resident and not filing any Canadian tax?

[logydoghan]

Hello everyone,

We became Canadian PR in 10/2023 and have stayed for 150 days in Canada in 2024. So we are not required to file any Canadian tax for 2023 and 2024. We work in the U.S. east coast and have always been paying tax to the IRS.

Now coming into 2025, we aim to live in Canada for 300 days each for this year and the next two years to fulfill the citizenship residency requirement. We bought a house in Montreal and will commute weekly from US and Montreal. We also have a home in the State. The question comes down to we have significant ties with both US and Canada and is it possible for us to claim that we are residents in US and not filing Canada and Quebec tax for the next couple of years? Our car, insurance, work, and income are all in the U.S.. we only have a place to live in Canada when we come here. I know there is 183 day rule but even if you live more than 183 days it still comes down to significant ties to decide tax residency.

and when we file for citizenship we will submit the tax obligation form as
Required to file/file?
No No
No No
No No
No No
No No

if that is not possible and we are tax residents of both US and Canada then it will become
No No
No No
Yes Yes
Yes Yes
Yes Yes

I understand that from IRCC standpoint they probably would more likely to believe the person below fulfills the tax requirement than the one above. However, we both have to pay a huge amount of additional tax to CRA and Quebec. So just wondering is that possible to not file any tax with CRA and Quebec but still fulfill the residency and tax requirements when we apply for citizenship?

Again, this is purely a technical tax discussion and in no way we are trying to avoid any tax obligations. We have consulted tax experts but they didn’t understand IRCC rule. We have asked immigration experts but they also didn’t understand the CRA rule. I am also trying to find a job in Montreal but things have not been easy so far. Every dollar saved can be used to kids and family. Thank you very much for your help and advice!

 

[scylla]

Hello everyone,

We became Canadian PR in 10/2023 and have stayed for 150 days in Canada in 2024. So we are not required to file any Canadian tax for 2023 and 2024. We work in the U.S. east coast and have always been paying tax to the IRS.

Now coming into 2025, we aim to live in Canada for 300 days each for this year and the next two years to fulfill the citizenship residency requirement. We bought a house in Montreal and will commute weekly from US and Montreal. We also have a home in the State. The question comes down to we have significant ties with both US and Canada and is it possible for us to claim that we are residents in US and not filing Canada and Quebec tax for the next couple of years? Our car, insurance, work, and income are all in the U.S.. we only have a place to live in Canada when we come here. I know there is 183 day rule but even if you live more than 183 days it still comes down to significant ties to decide tax residency.

and when we file for citizenship we will submit the tax obligation form as
Required to file/file?
No No
No No
No No
No No
No No

if that is not possible and we are tax residents of both US and Canada then it will become
No No
No No
Yes Yes
Yes Yes
Yes Yes

I understand that from IRCC standpoint they probably would more likely to believe the person below fulfills the tax requirement than the one above. However, we both have to pay a huge amount of additional tax to CRA and Quebec. So just wondering is that possible to not file any tax with CRA and Quebec but still fulfill the residency and tax requirements when we apply for citizenship?

Again, this is purely a technical tax discussion and in no way we are trying to avoid any tax obligations. We have consulted tax experts but they didn’t understand IRCC rule. We have asked immigration experts but they also didn’t understand the CRA rule. I am also trying to find a job in Montreal but things have not been easy so far. Every dollar saved can be used to kids and family. Thank you very much for your help and advice!

It's the second. You will need to file taxes in Canada. I don't see how you can possibly claim to be non residents if you are spending 300 days each year in Canada. You'll get on the wrong side of CRA.

 

[hazelb712]

you can use the tax you paid in either country as Foreign Tax Credit for the other country so you don't get taxed twice on the same income. Better to consult with a cross border tax professional, who is familiar with both US & CDN tax rules, especially QC since it is more complex. When you buy a property here, and the dates to stay for a year, you already established a tie to Canada so you are considered as a tax resident in Canada. I don't see how you can circumvent this.

 

[YVR123]

Hello everyone,

We became Canadian PR in 10/2023 and have stayed for 150 days in Canada in 2024. So we are not required to file any Canadian tax for 2023 and 2024. We work in the U.S. east coast and have always been paying tax to the IRS.

Now coming into 2025, we aim to live in Canada for 300 days each for this year and the next two years to fulfill the citizenship residency requirement. We bought a house in Montreal and will commute weekly from US and Montreal. We also have a home in the State. The question comes down to we have significant ties with both US and Canada and is it possible for us to claim that we are residents in US and not filing Canada and Quebec tax for the next couple of years? Our car, insurance, work, and income are all in the U.S.. we only have a place to live in Canada when we come here. I know there is 183 day rule but even if you live more than 183 days it still comes down to significant ties to decide tax residency.

and when we file for citizenship we will submit the tax obligation form as
Required to file/file?
No No
No No
No No
No No
No No

if that is not possible and we are tax residents of both US and Canada then it will become
No No
No No
Yes Yes
Yes Yes
Yes Yes

I understand that from IRCC standpoint they probably would more likely to believe the person below fulfills the tax requirement than the one above. However, we both have to pay a huge amount of additional tax to CRA and Quebec. So just wondering is that possible to not file any tax with CRA and Quebec but still fulfill the residency and tax requirements when we apply for citizenship?

Again, this is purely a technical tax discussion and in no way we are trying to avoid any tax obligations. We have consulted tax experts but they didn’t understand IRCC rule. We have asked immigration experts but they also didn’t understand the CRA rule. I am also trying to find a job in Montreal but things have not been easy so far. Every dollar saved can be used to kids and family. Thank you very much for your help and advice!

When did you buy your house? With a house and you living in it plus your mortgage (I believe you didn't pay cash for the house), you already have significant tie to Canada and be deem as a tax resident.

You should not have confused your accountant. This is NOT an immigration question. It's straightly tax related.

Your travel back and fore to be able to meet your RO and to accumulate enough days for citizenship application has nothing to do with your tax return.

Not sure about previous year, but you ARE a tax resident for 2025 if you plan to live here for 300 days. Call CRA to confirm.
The 183 day rule is actually not a straight rule as you said. Many who lived LESS than 183 days are deem tax resident.
Also check Quebec requirement if you want to meet physical present requirement for your healthcare coverage.

US tax paid would be credit on your Cnd tax return.
Again talk to your accountant and leave the "immigration part" out of the discussion.
(hopefully yours is familiar with cross border tax. (There are many of them, since a lot of people are moving between the 2 countries and have income in both countries)

 

[canuck78]

Would also go into this knowing that you change of government may also lead to change of citizenship rules. Things like bringing back intent to remain clause may be problematic in your case.

 

[armoured]

Again, this is purely a technical tax discussion and in no way we are trying to avoid any tax obligations. We have consulted tax experts but they didn’t understand IRCC rule. We have asked immigration experts but they also didn’t understand the CRA rule. I am also trying to find a job in Montreal but things have not been easy so far. Every dollar saved can be used to kids and family. Thank you very much for your help and advice!

-The technical tax discussion is important - in that you may not think so, but you may need to file _and pay taxes_ for 2024. (possibly but less likely for 2023) The question is whether you will be a deemed resident or not. That is (or should be) a question any tax expert can provide useful feedback to, and if you have any doubt, check with CRA directly.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

-If you're in Canada 300 days a year (183 days a year), you're almost certainly a resident. I mean, your spouse will be with you (perforce) most of that time, and you are living somewhere - a place you reside more than 180 days a year, that's a residence. (I'd be very cautious about anyone suggesting schemes or arguments to get around that...) (You would get offset/credits for most US taxes paid, though that may well leave more owing)

-As for IRCC: the rule is that you must file if you're required to file, and the most simple rule for that is you must file if you owe them money. A rule of thumb for many/most is that if you're a resident and don't owe them money, they may owe you benefits and you should file. I believe that you may be required to file on basis of some foreign property holdings and income, but don't know for certain.

-You pretty much must provide IRCC with permission to ask CRA when you apply for citizenship. Obviously that may, ahem, prompt CRA to check your filing obligations at that point. (Those not required to file are often going to be lower income with social insurance numbers and bank accounts that provide some info to government, with many having income tax taken out by employers / no significant other income, and hence no tax owing).

Not tax advice, I'm not going to say I'm qualified to give that advice.