Considered as resident or non resident of CANADA

[KUTTTY]

Dear friends,

A Canadian Citizen, who has a corporation in CANADA but working and living in U.S on EAD or Greencard in U.S.A is considered as a resident of CANADA for tax purposes?

Obviously if he has a corporation, he will have a bank account in canada.

Thank you in advance.

 

[KUTTTY]

No one has a clue friends? any information is helpful.

 

[paras1991]

There are several ties that has to be looked ...If you have a home , kids, spouse, license and you commute to Canada., then you will be considered a resident.. However just having a bank account and shares in a corporation, won't make you a resident for tax purpose.

 

[KUTTTY]

There are several ties that has to be looked ...If you have a home , kids, spouse, license and you commute to Canada., then you will be considered a resident.. However just having a bank account and shares in a corporation, won't make you a resident for tax purpose.

Thank you so much for your response. He has no ties with canada expect a corporation in canada and personal bank account and company account and RRSP. He has never travelled to canada in last few years. He is living and working in U.S and paying taxes in U.S.
he sold the house also when he left canada.

But how to prove the exit date? In passport when he travelled last time from canada to U.S . he had date stamped at the U.S border.
He is working on EAD/greencard in U.S.
He had already provided them with W2's from U.S taxes.

But still they asked for NR73 form to determine the residency.



Thank you so much.

 

[KUTTTY]

Can he send them the visa stamping date from the passport page?

 

[paras1991]

NR73 is the best way to determine the residency status. you can fill that form and send to CRA. There you can enter the departure date also.

For your info- If you leave Canada and keep residential ties in Canada, you are usually considered a factual resident, and not an emigrant. However, if you are also considered to be a resident of another country with which Canada has a tax treaty(like US), you may be considered a deemed non-resident. Deemed non-residents are subject to the same rules as emigrants.

When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax). Make sure all this was taken care of in the last return as a resident

 

[torontosm]

Thank you so much for your response,

Yes filling NR3 as they requested.
No ties with canada other than corporation in canada and personal bank account and company bank account.
Sold the apartment and kept the remaining money in canadian bank by paying the total loan on the apartment .
Only thing is they didn't know that they had to report the date of departure and cancel the health cards..but health cards were also expired and never renewed those and never entered into canada also after they left canada.

there is a question in NR73 form:

Q. You will be involved with and have responsibilities in partnerships, corporate or business relationships, or endorsement contracts in Canada

Since he has a corporation, Do we need to give corporation details here, or just mention that he is the director/manager of the corporation.



Do you think that having a corporation in canada will effect the status?

Please suggest.

Thanks,

Is the corporation active? Is he the sole shareholder or are there others? If it's the latter, what % shareholding does he have? Has the corporation been filing its taxes regularly?

 

[prace72]

Hi there
I have the following question:
I moved out of Canada and went to East Europe in June 2016. If I fill my tax papers online next year (2017) what would be the most appropriate status I am ?
Am I a Non-resident, A Deemed Resident, Non-Resident S216, Non-resident S217 or Canadian Resident ? What am I?
And also - Do I need to prove the date when I moved out of the country as well?

Thank you.

 

[prace72]

Hi there
I have the following question:
I moved out of Canada and went to East Europe in June 2016. If I fill my tax papers online next year (2017) what would be the most appropriate status I am ?
Am I a Non-resident, A Deemed Resident, Non-Resident S216, Non-resident S217 or Canadian Resident ? What am I?
And also - Do I need to prove the date when I moved out of the country as well?

Thank you.