My wife's PR +Income Taxes + moving out of Canada together

[giraffe]

Hi there,

I'm in need of some advice/Information for my Wife’s PR status and how to deal with Taxes. We’re just trying to find the correct info and Understand what we should do in our situation. I haven’t haven’t been able to find information online about this matter

A bit about myself.

- I’m a 27 years old Canadian Citizen. I'm Freelance artist that I live and work in Toronto in my apt ( self employed) for companies that are located in US / UK mostly. So no Canadian job/ income per say but I do do my taxes here.
- My wife is 26 years old From South Korea and she's a landed immigrant in Canada. She has her PR card. She landed in Canada November 2009.

My wife and I want to move to Korea for 3-5 years and then come back to Canada. We’re not sure how to deal with this situation. We don’t want her to loose her PR status but at the same time we don’t want any tax obligations in Canada.

I’m aware that Immigration and Tax problems are 2 separate problems but the 2 main issues we’re facing right now are:

1. Her not meeting the 730 day requirements for her to keep her PR status. I was on the phone with Immigration Canada and they told me that even we live outside of Canada she may still be eligible to fulfill her 730 day obligation. The immigration website states
“Each day that you are accompanying a Canadian citizen outside Canada is considered a day for which you satisfy the residency obligation provided that the person you are accompanying is your spouse, common-law partner or parent (if you are a child under 22 years of age).

The total number of days that you spend accompanying a Canadian citizen may be added to the total number of days for which you otherwise satisfy the residency obligation.”

We want to move to Korea End of march So by that date My wife will have been in Canada 1 year and 4 months ( about 480 days). She will be missing about 250 I assume. If staying together In Korea counts towards the residency obligation Then There are no problems.

HOWEVER!!! The problem is

2.We’re not sure what to do with our taxes in Canada. My wife will be working in Korea and most likely paying taxes in Korea( she's never worked in Canada). I will be working Freelance in Korea but for companies in the USA/UK and I would like to pay taxes in Korea instead of Canada. Looking at the situation, being away from Canada for 3+ years , we don’t see why we would need to pay taxes in Canada. We don’t own property in Canada or a car. We wont have an address in Canada when we leave and We wont be using services or health care in Canada for 3+ years. If at all possible we would like to just not have any tax responsibilities with Canada while were away But at the same time I don’t want to file as a “non-resident” of Canada for taxes purposes if it might affect my wife’s PR.

I'm in Need of advice as to what I should do with my Wife’s PR if we don’t want to lose it But at the same time we want to cut off enough ties with Canada so that we don’t need to pay taxes here YET have Canada recognize the days that’s she's with me in KOREA as counting days towards her residency obligation...

Hope this makes sense. I talked to an accountant today about the tax issues and he told me I should apply as a non resident of Canada HOWEVER because my wife is a PR resident that hasn’t fulfilled her basic obligation yet and because we want to come back to Canada later on he suggested we contact an immigration lawyer to give advice about our situation. Which I have but So far , No lawyers are returning my calls. I'm assuming because I'm only in need of info and not in need to any services per say ( i guess they cant make money off me =( ).

Please let me know What my options are.

THANK YOU!

looking forward to some replies. Or stories from anyone who is in or Has been in a similar situation.

THANKS!

 

[Alabaman]

Wow your post is long but not as complex as its length as a matter of fact, you already answered question no 1. Your wife is good as long as she accompanies you... a Canadian citizen. CIC already told you this and you also read it on their website.

There are ways to not pay Canadian taxes while you are away. You have to severe ties to Canada (just like you are already doing). However in order to be sure of what appropriately constitutes severing ties, I would advise you check out CRA's website or better still consult a tax consultant.

By the way, Non Resident for tax purposes is totally different from Non Resident for immigration purposes. So your wife is fine.

 

[giraffe]

Hi Alabaman

Thanks for the reply.

Yeah , sorry for the long post. I just wanted to be clear with everything and give a background and what not.

If what you say is true, About being a Non resident for tax purposes has nothing to do with my Wife's pr Than ALLL is good I guess.

Would you perhaps have any links where I can read about this specifically? From a Canadian government website? I'd really like an official source that can put this to rest.

Also would you know what kind of documentation I should be keeping while I live in Korea to prove the My wife and I have been together in korea ( so that she can count those days towards her residency?) What kind of documents would they accept? We will be living with her Family so We wont have any signed Lease with our names . Nor can we get a joint bank account in Korea. Sooo what else could i show?

THANKS..

 

[Alabaman]

Check out this link http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html Note how they emaphasize "for tax purposes".

Per docs, keep everything you can keep such as flight tickets showing you travel together... I dont think its hard to proof that you are still married to someone. Is it? I don't forsee any serious scrutiny when the time comes.

 

[giraffe]

cool Thanks!

Yeah. I hope theres no problems when we decide to come back in 3-5 years. Do you think I should even bother consulting an immigration lawyer or some accountant that specializes taxes for Expats?

Also, this whole resident / non resident/ permanent resident/ non resident for tax purposes HAHAH. Its all very confusing. They should make it clear somewhere that by NON RESIDENT FOR TAX PURPOSES has nothing to do with being a permanent RESIDENT. Its somewhat confusing when they use the same terms. BLAH! Perhaps I should call Canada immigration to double check? I just dont want to waste my time on HOLD. Last time i talked to them asking about being NON resident for tax purposes they told me to call CRA. BUt my question to them was cleary " does being a NON resident for tax purposes affect my wife's PR" .. =p

 

[Alabaman]

Surprisingly, the people you call at these agencies don't always know the rules especially when the situation overlaps between two agencies. If you have the resources you can also consult with an immigration lawyer and/or a tax accountant. It wouldn't hurt... and it will also probably make you feel better. Goodluck.

 

[giraffe]

I just Called Canada Immigration Again.

They confirmed, That being a non resident for tax purposes has NOTHING to do with my Wife's PR.
At first they didnt understand my question and kept telling me to call CRA but the lady had to put me on hold while you confirmed with a supervisor.

=p..

I feel better!

 

[Alabaman]

I just Called Canada Immigration Again.

They confirmed, That being a non resident for tax purposes has something to do with my Wife's PR.
At first they didnt understand my question and kept telling me to call CRA but the lady had to put me on hold while you confirmed with a supervisor.

=p..

I feel better!

something to do or nothing to do?

 

[giraffe]

opps typo... NOTHING to do =p