+1(514) 937-9445 or Toll-free (Canada & US) +1 (888) 947-9445

Not Paying TAX. Is it Crime?

canadaonly

Member
Sep 25, 2011
17
1
Dear All,

I am a new PR but still living in my country, my plan to return to Canada after 2 years from now. But what if I didn’t pay any tax during this 2 years in spite of my earning is above 50000 USD per year in my country.
I decide to keep this money in my country and to never declare it to the Canadian taxing authority.
But what if they discover that I am not paying the tax, can this be considered as a crime and can affect my application for citizenship later on?

Your help, Pls.
 

steaky

VIP Member
Nov 11, 2008
14,792
1,761
Job Offer........
Pre-Assessed..
Being non-resident of Canada, you are not expected to pay tax on income earned outside Canada.
 

Cappuccino

VIP Member
Jun 23, 2009
4,594
409
Category........
Visa Office......
London
NOC Code......
3131
Job Offer........
Pre-Assessed..
App. Filed.......
30-Aug-2010
AOR Received.
15-Dec-2010
IELTS Request
Sent with app - 8.5 band score
Med's Request
13-Apr-2011
Med's Done....
19-Apr-2011
Passport Req..
28-June-2011
VISA ISSUED...
21-July-2011
LANDED..........
27-Aug-2011[br][br]ECAS[br]Recd By VO.....: 11-Feb-2011[br]In Process.......: 15-Mar-2011[br]Decision Made.: 25-Jun-2011
canadaonly said:
Dear All,

I am a new PR but still living in my country, my plan to return to Canada after 2 years from now. But what if I didn't pay any tax during this 2 years in spite of my earning is above 50000 USD per year in my country.
I decide to keep this money in my country and to never declare it to the Canadian taxing authority.
But what if they discover that I am not paying the tax, can this be considered as a crime and can affect my application for citizenship later on?

Your help, Pls.

You have to pay tax in the country in which you reside, which is usually defined as living there for month than 6 months.

I believe you legally have to declare all earnings on your Canadian tax return after becoming a taxable resident, even if you move away for a while, although if you were residing in another country they may not ask you to pay Canadian tax.


But you can't pretend to reside in Canada as far as your country is concerned, pretend to reside in your own country as far as Canada is concerned, and get away with earning money and paying no tax at all in either country, which sounds like what you are trying to do.

You will be breaking the tax laws of at least one of those two countries. Unless there is some magic reason why you are exempt from taxation in your own country.

Furthermore if you make any false statements on your Canadian tax return, that IS a crime regardless of whether you legally have to pay tax or not, and if audited (yes, they audit people randomly) and caught, it may not only affect the possibility of becoming a citizen, but they could also revoke your residency and send you back to your home country.

Please also be aware that you need to reside in Canada 2 years out of every 5 to renew your residency, and you should keep this in mind whilst planning how long you will stay outside of the country.

Wayne.