Finance & Tax Implications on PR Cancellation

[Kodial]

Hi,

I would appreciate some information from senior members on this forum. I am a principal applicant having obtained my PR in Nov 2011. My family currently resides in Canada. I am planning to surrender my PR as I am unable to fulfill my RO obligation.

a) What are the tax implications if I cancel my PR?

b) In case I plan to reapply in future would I get a new social insurance number or will I be given the same number?

c)Do I need to file taxes for Financial year 2014? If Yes, then by when – before or after cancellation of my PR card. What about for 2015 onwards do I still need to continue to file taxes.

d) What is the impact of the PR cancellation on bank accounts? Do I need to change any status on joint bank accounts with my spouse?

Thanks

 

[Amadan123]

Hello Kodial,

Please allow me to address your concerns raised in points (1) and (3).

(1)
There are no tax implications associated with the cancellation of your PR in itself. The tax implications arise if and when:

a) you and your family leave Canada, where
b) 'family' refers to a spouse and dependants under the age of 18

The taxation in Canada doesn't depend on your legal status as a PR or a citizen; but the question is whether or not you are a resident for tax purposes. See link below for more details.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

(3)
If you were a resident of Canada for tax purposes in 2014, and you earned income from anywhere in the world, then you have Canadian tax reporting and payment obligations. Even if you did not earn income, it can still be a good idea to file a return because you can receive certain credits.

If you and your family decide to leave Canada permanently in 2014, then you will have to file a final departure tax return. Or, if you stay for the entire 2014 year, then you will file a regular tax return. Both of the aforementioned 2014 returns are due by April 30, 2015.

Cancellation of your PR card does not affect the dates and deadlines mentioned above.

I hope that helps. If you have more questions, or want further clarification, please let us know!

Madan Chartered Accountant team
www.madanca.com

 

[Kodial]

Thanks Madan for the information provided.

Appreciate your feedback on point (b) about the SIN number that I currently hold.

Would that change in case I reapply for immigration at some future date.

My family plans to continue to reside in Canada.

 

[Amadan123]

With regards to the SIN, I'm not sure what to tell you. Perhaps you want to consult the website below, or its representatives by giving them a visit/call?

Do let us know what you find out, because there may be other individuals in your/similar situations.

Madan Chartered Accountant team
www.madanca.com