Do a non resident PR has to pay taxes for his out of Canada income

[S7]

They can apply for a TRV without your NOA. For a supervise or sponsorship, NOA is required.

Thanks!

Have you applied for TRV for your parents before? I read that I have also to proof my income in Canada, beside my parents income


Regards,
s7

 

[canuck_in_uk]

I don't believe that NOAs are required for TRVs; you can show bank statements and stuff like that. I suggest you create a new thread in the Visitors section of the forum.

 

[nikjuneja]

Sorry to include my question on this thread itself as it looks more active:

Hi Seniors, vgm to all.

I had one specific query related to transferring funds from india to Canada.

Below is my scenario:
I landed in Jul 2014 , joined a job for 1 month and had to come back in Sep 2014.
I still have my account opened in Canada.
I didn't file tax returns in Canada.
While in india, i was working and earned some more income.
Now i want to shift to Canada permanently but wanted to know the tax implications if I do a WIRE transfer from India to Canada
As i have already paid on this income in India.

Regards,
Nik

 

[Alex54321]

For a link to official information , search for CRA Canada on the Internet. Good luck sorting through all that information!

The short answer is that yes, you will be considered a Canadian taxpayer, and taxable on worldwide income. There are three primary criteria that make one a Canadian taxpayer:
1) One has access to a principal residence (not a seasonal residence like a cottage) in Canada throughout the year – whether rented or owned.
2) One has family dependants in Canada, like children and/or spouse.
3) One spends more than 183 days per year in Canada.

In CRA’s eyes you will be a taxpayer because of criteria 1 and 2.

The other criteria (bank account, driver’s licence, etc) are secondary considerations, and may deem you a taxpayer only if you have enough of them. But your case seems clear. You will have to declare your worldwide income to Canada, less taxes paid elsewhere (if the country where you earn that income has a tax treaty with Canada).

What would be if we change a bit scenario:
The husband is US/Canada citizen (not Saudi Arabia) and choose (live in US) to be a resident of US with US address, US job, US driver license, etc. By US/Canada treaty this person could be deemed non-resident of Canada : "If you established ties in a country that Canada has a tax treaty with and you are considered a resident of that country, but you are otherwise a factual resident of Canada, meaning you maintain significant residential ties with Canada, you may be considered a deemed non-resident of Canada."

 

[deofevente]

Hi,

My PR process is in final stages and if I am granted a PR I will send my wife and two kids to Canada to live and maintain their PR and citizenship requirement whereas I ll stay at my current place.I will support them financially ,my wife is not supposed to work.
I am planning to visit Canada once an year for a month .I am also not going to buy any property but I am thinking of taking a driving licence ,opening a joint bank account,renting a house to my wife's name.
Kindly explain do I have to pay taxes on my OUT OF CANADA earned income.
Moreover what is the minimum taxable income in Alberta and Canada?
(as my family will reside there)

I ll be highly obliged.Moreover can anyone provide me some official link regarding this matter.

Thanks

Hello in same shoes as yours. were you able to find a solution?

 

[Alex54321]

Hello in same shoes as yours. were you able to find a solution?

- Are you from the country the Canada has treaty with?

 

[deofevente]

- Are you from the country the Canada has treaty with?

KSA currently don't have a tax treaty with Canada.

How did u manage?
is there an escape?

 

[canuck78]

KSA currently don't have a tax treaty with Canada.

How did u manage?
is there an escape?

If your family is living in Canada and using infrastructure and services (schools and healthcare) of course your income will be taxed. Only way to avoid taxes is to move your family out of Canada.

 

[Alex54321]

If your family is living in Canada and using infrastructure and services (schools and healthcare) of course your income will be taxed. Only way to avoid taxes is to move your family out of Canada.

You are quick to use very strong words like "of course your income will be taxed" or "Only way to avoid taxes". I understand that KSA does not have a treaty with Canada, so you are probably right in this case.

What do you say about US citizen, who is a resident of USA, but is otherwise a factual resident of Canada, meaning he/she maintains significant residential ties with Canada (family, house), he/she may be considered a deemed non-resident of Canada?

Would you agree that US person can be a deemed non-resident of Canada?

 

[canuck78]

You are quick to use very strong words like "of course your income will be taxed" or "Only way to avoid taxes". I understand that KSA does not have a treaty with Canada, so you are probably right in this case.

What do you say about US citizen, who is a resident of USA, but is otherwise a factual resident of Canada, meaning he/she maintains significant residential ties with Canada (family, house), he/she may be considered a deemed non-resident of Canada?

Would you agree that US person can be a deemed non-resident of Canada?

The question did ask how do I escape paying taxes so yes I had a strong reaction. If your family is living is living in Canada yes you have to pay taxes in Canada but due to the treaty Canada has the US you have to pay US taxes first. I am not a tax accountant you should get in touch with one if you have doubts about your tax situation.

 

[deofevente]

The question did ask how do I escape paying taxes so yes I had a strong reaction. If your family is living is living in Canada yes you have to pay taxes in Canada but due to the treaty Canada has the US you have to pay US taxes first. I am not a tax accountant you should get in touch with one if you have doubts about your tax situation.

My apologies as I could have explained my situation, rather than a generic statement.
My planned scenario as under and I appreciate any feedback/opinion:

1. I intend to land with my family in Nov 2018. Carry sufficient Cash, DD & my local credit card for emergency. During the stay - no bank account, no driving license, no lease (most likely stay in hotel), no registering to OHIP or any other benefit. irrespective of above, for Tax Year 2018 there is hardly any amount to pay in tax if I file.

2. I want to stay there 2 weeks and leave my family behind: Just for them to experience Canadian winter and see how well they are able to cope up. It will help us in making a firm decision to move. They will be staying there till march 2019 (approx 90 days in taxation year 2019).

3. I will come back and apply for PRTD. Will fly back to Canada in March to get the family travel back with me. At Airport, we will file NR73 Determination of Residency Status (leaving Canada) - Canada.ca stating that we are leaving Canada and will be a resident in other country.

4. Then we all together may enter Canada an year later in summers for a permanent move and settle for good. Be a Canadian resident only and start filing taxes.

So the main objective for me of this whole exercise is to activate the PR, let family face the winters to get a feel and wind-off everything from elsewhere in the meantime. It's not to misuse the system but to check that am I bind to pay Canadian taxes for such duration as I have not availed any of the benefits.

 

[canuck78]

My apologies as I could have explained my situation, rather than a generic statement.
My planned scenario as under and I appreciate any feedback/opinion:

1. I intend to land with my family in Nov 2018. Carry sufficient Cash, DD & my local credit card for emergency. During the stay - no bank account, no driving license, no lease (most likely stay in hotel), no registering to OHIP or any other benefit. irrespective of above, for Tax Year 2018 there is hardly any amount to pay in tax if I file.

2. I want to stay there 2 weeks and leave my family behind: Just for them to experience Canadian winter and see how well they are able to cope up. It will help us in making a firm decision to move. They will be staying there till march 2019.

3. I will come back and apply for PRTD. Will fly back to Canada in March to get the family travel back with me. At Airport, filing NR73 Determination of Residency Status (leaving Canada) - Canada.ca stating that I am leaving canada and will be a resident in other country.

4. Then I may enter Canada an year later in summers for a permanent move and settle for good. Be a Canadian resident only and start filing taxes.

So the main objective for me of this whole exercise is to activate the PR, let family face the winters to get a feel and wind-off everything from elsewhere in the meantime. It's not to misuse the system but to check that am I bind to pay Canadian taxes for such duration as I have not availed any of the benefits.

If your family stays for over 6 months you will have to pay taxes. If your family does not intend to stay over 6 months you are not entitled to use the healthcare system. That is one of the requirements. If you leave before the 6 month period you can be asked pay back any expenses they use.

 

[deofevente]

If your family stays for over 6 months you will have to pay taxes. If your family does not intend to stay over 6 months you are not entitled to use the healthcare system. That is one of the requirements. If you leave before the 6 month period you can be asked pay back any expenses they use.

Thanks @canuck78 . yes that's true. That's why I don't intend to avail OHIP as we all are already under international insurance cover and my local insurance company will take care.

 

[canuck78]

Thanks @canuck78 . yes that's true. That's why I don't intend to avail OHIP as we all are already under international insurance cover and my local insurance company will take care.

Your whole family will not qualify for OHIP if they don't plan to stay over 6 months.