NR73 Determination of Residency Status (leaving Canada) Vs Departure Tax Return – Which one to file

[ankj]

I am planning to move (with Family) to Middle East. I have a primary resident and a rental property which I am planning to rent out when I leave. I was going through various forums and discussion threads few suggested not to file NR73 form until asked by CRA instead file your yearend tax as departure tax return.

I am little confused after reading too many forums. Can someone help me in determining what should be done and why?

I know I have to pay capital gains on my rental property and rebuy (just a process) my primary resident at FMV. I need to repay HBP back within 60 days. And need to file a tax return for my rental income 216 Non-Resident Tax Return (NR6 slip if you have a Canadian agent). I know I have to change my bank account type to non-resident. I would like to keep my Ontario driving license if I can (please let me know the implications if there is any). I am aware I won’t be able to contribute to RRSP, RESP, TFSA and Child Benefits.

Is Departure tax return will be enough to tell CRA that I am a non-resident? Anything else I need to consider?

Since Most of the middle eastern countries doesn't have a tax treaty with Canada by filling the NR73 am I inviting CRA to come after me for tax?

 

[steaky]

I suggest you to get an accountant specialize in cross border taxes.

 

[canuck78]

You need to inform CRA and provincial health care offices that you will be leaving and your departure date so they can stop your benefits.

 

[mad_hatter]

First, you can defer paying paying capital gain on your rental property until you sale it. Don't forget to submit withhold tax to CRA on your rental income.

Second, you do not have to file NR73, however, you must file a departure tax return and don't forget form T1161.

Third, you can keep your license until expiration, just do not renew it. Ontario driving license is only issued to a resident of Ontario, if you renew the license you are saying you are a resident of Ontario.

Four, you should also terminate your memberships in various professional organizations.