Do I have to declare that I'm non-resident & how ?

[Adamz2019]

Hello,

I've just realised this potentially critical action of declaring myself as non-resident for tax purposes, and after reading so many posts here and elsewhere, im officially confused. So here is my situation:

- Did a soft landing in Toronto on January 2020, stayed for just 2 days before going back to my country of residence. During that time I got my SIN & opened a bank account (with credit card). Never deposited anything though or used it.
Based on the above do I need to declare that I'm not in Canada and all share the details above with the CRA and if so how do I do that ? Is it ok that I do it now from outside Canada ?

Thanks for your help !

 

[steaky]

Contact the CRA about non resident enquiries:

https://www.canada.ca/en/revenue-agency/corporate/contact-information/international-tax-non-resident-enquiries.html

 

[Bs65]

Staying for just 2 days you have never been resident for tax purposes so nothing to do.

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

 

[kabayan]

Hello,

I've just realised this potentially critical action of declaring myself as non-resident for tax purposes, and after reading so many posts here and elsewhere, im officially confused. So here is my situation:

- Did a soft landing in Toronto on January 2020, stayed for just 2 days before going back to my country of residence. During that time I got my SIN & opened a bank account (with credit card). Never deposited anything though or used it.
Based on the above do I need to declare that I'm not in Canada and all share the details above with the CRA and if so how do I do that ? Is it ok that I do it now from outside Canada ?

Thanks for your help !

When we did a soft landing for less than a month years back, we did inform CRA that we will be non-residents for certain years., so that is on record. We sent a letter and received a reply.

 

[Adamz2019]

Thank you all for the replies. I tried calling CRA but after an hour on the line I gave up....will try again tomorrow.

In regards to sending a written request, do you know if I need submit the "DETERMINATION OF RESIDENCY STATUS (ENTERING CANADA)" Form to declare that I'm non resident or is that something I need to send every time I'm entering canada as a non-resident ?

 

[canuck78]

In general not a grear idea to set up a bank account or credit card if your want ro remain a non-resident. I would only use the cc and bank acount in the year you plan on moving back.

 

[Adamz2019]

In general not a grear idea to set up a bank account or credit card if your want ro remain a non-resident. I would only use the cc and bank account in the year you plan on moving back.

Thanks for the advise. I will close my bank account promptly (assuming I can do that remotely !)

 

[canuck78]

Thanks for the advise. I will close my bank account promptly (assuming I can do that remotely !)

As long as there is minimal funds it isn’t usually an issue. Some try to use credit card to build credit and slowly transfer money over a couple of years. Those are bigger issues. Would shut down the CC.

 

[IndianBos]

Thank you all for the replies. I tried calling CRA but after an hour on the line I gave up....will try again tomorrow.

In regards to sending a written request, do you know if I need submit the "DETERMINATION OF RESIDENCY STATUS (ENTERING CANADA)" Form to declare that I'm non resident or is that something I need to send every time I'm entering canada as a non-resident ?

We did a soft landing in 2015, got SIN and opened a bank account. Finally moved to Canada in 2018. Since you don't have any reportable income in Canada and will not be filing taxes, there is nothing to declare from tax residency purposes. You just file taxes when you earn income here and start filing returns.
We did the same in 2018 and there have been no concerns with the CRA.

 

[canuck78]

We did a soft landing in 2015, got SIN and opened a bank account. Finally moved to Canada in 2018. Since you don't have any reportable income in Canada and will not be filing taxes, there is nothing to declare from tax residency purposes. You just file taxes when you earn income here and start filing returns.
We did the same in 2018 and there have been no concerns with the CRA.

Not quite as easy as just needing to start filing taxes when you start earning income. In this case there are no other assets or ties to Canada and if there is no bank activity like credit card usage or bank transfers there will be no issue. In general if you want to remain a non-resident for tax purposes have the least amount of ties to Canada as possible. Setting up an account with almost no money so that you can transfer funds in the year that you will become a tax resident is usually fine.

 

[Adamz2019]

Thank you both for the replies. Just one thing I want to know, do I have to declare to CRA that I'm non-resident or is that something that I determine on my own and file taxes accordingly ? in other words, should I have also notified them somehow (still trying to find an email to use to write to them) early on when I landed that I will not be living in Canada for a while ?

 

[Bs65]

I am no tax expert and others may disagree but personally think you are overthinking things in that you have no income in Canada to report , you have no ties/residence in Canada and seems likely that the many people who complete a soft landing when that was possible prior to COVID do absolutely nothing with CRA given simply although they are landed PRs they are simply not yet (after 2 days) meeting the tax residence criteria in the country.

As for bank account unless you are planning on pushing thousands of dollars through it from outside of the country which could in theory come to CRA attention cannot see why that would be an issue to leave open for now, as said others may disagree.

 

[canuck78]

We have landed in Toronto in 2007 and stayed in Canada for 2 years due to recession my husbands job was lost and we had to move out from Canada to Middleeast for job purpose. My son is born there and holds Canadian passport. We didn’t renew our PR card and how can we re enter to Canada for settling there permanently

Your son can return at any time. You have not met your residency requirements so you can attempt to return to Canada either by attempting to get a PRTD based on not being able to return for H&C reasons (doesn’t sound like your case) or trying to attempt to return via the US land border and hope you don’t get reported for not meet your residency obligation. If you are not reported you may struggle to get a new health card for 2+ years without a valid PR card. Essentially there is no guarantee that you can return permanently. If you are able to enter without being reported you’ll need to remain in Canada for 2 years and then apply for a PR card. If reported the process to lose your PR status will start although you can try to appeal this.

 

[canuck78]

Thank you both for the replies. Just one thing I want to know, do I have to declare to CRA that I'm non-resident or is that something that I determine on my own and file taxes accordingly ? in other words, should I have also notified them somehow (still trying to find an email to use to write to them) early on when I landed that I will not be living in Canada for a while ?

No you don’t need to confirm that you are a non-resident with CRA,

 

[Adamz2019]

No you don’t need to confirm that you are a non-resident with CRA,

Many thanks for the reply.