Parternship and Taxation

[m34]

Hi All,

I have been doing a lot of reading and research and cannot seem to find a proper answer to the below, so advice/opinions would be appreciated.

I did my soft landing in Canada back in May 2019 and returned to my home country with the intention to move back to Canada in 2 years. I have no ties to Canada, i.e. no bank account, no house, no dependents, etc.., therefore I am deemed to be non-resident for tax purposes.

I am, however, now planning to enter into a partnership with a Canadian citizen for the purpose of buying a small business in Montreal. My intention is still to move to Canada in 2 years.

With the above scenario, am I considered a resident for tax purposes? If I am still considered non resident for tax purposes, I believe I will need to pay taxes on the income generated from this business. Is such tax withheld at source? do I need to do my separate filings?

Help is appreciated.

Thanks

 

[absz]

I would advise you to check with a professional lawyer, over here, you will find so many confused and unrelated reply's. Out of curiosity, what is the business you are about to start/or have started?

 

[canuck78]

Hi All,

I have been doing a lot of reading and research and cannot seem to find a proper answer to the below, so advice/opinions would be appreciated.

I did my soft landing in Canada back in May 2019 and returned to my home country with the intention to move back to Canada in 2 years. I have no ties to Canada, i.e. no bank account, no house, no dependents, etc.., therefore I am deemed to be non-resident for tax purposes.

I am, however, now planning to enter into a partnership with a Canadian citizen for the purpose of buying a small business in Montreal. My intention is still to move to Canada in 2 years.

With the above scenario, am I considered a resident for tax purposes? If I am still considered non resident for tax purposes, I believe I will need to pay taxes on the income generated from this business. Is such tax withheld at source? do I need to do my separate filings?

Help is appreciated.

Thanks

You need an accountant not a lawyer. Owning a business in Canada will both create corporate taxes and perhaps individual pay out of salaries (in various forms) which could change your tax status. Don’t call the CRA tax line they often give out incorrect information. You should already be working with an accountant and lawyer when setting up your business and partnership.