Short Landing - Does getting DL establish tax filing obligation ?

[sarimraza]

Dear All

Ive done short landing for 2 months -- I was thinking of getting Ontario DL now to avoid the work later. However one member here pointed out that getting DL might establish social ties with canada even though I would have zero residential ties. This would in turn mean that i should file my tax return ?

Is this true or not ? who can clear this confusion ? should i speak to CRA directly or better not to engage them at this point ?

Any other forums like Newcomers Information Centre or settlement.org that can clear this issue ?

Its grey area hence the confusion . . .

Thanks

 

[next2015]

Yes it is true, a DL establishes residential ties for tax purposes, regardless the issuing province. If you're still in doubt please refer to the page below on the CRA website, which lists the relevant residential ties - you can also call CRA, if you wish, but the answer won't be any different.

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

Once you establish residential ties (as defined by CRA), you are obligated to report all your income, including income earned outside Canada, by filing a tax return.

 

[torontosm]

Dear All

Ive done short landing for 2 months -- I was thinking of getting Ontario DL now to avoid the work later. However one member here pointed out that getting DL might establish social ties with canada even though I would have zero residential ties. This would in turn mean that i should file my tax return ?

Is this true or not ? who can clear this confusion ? should i speak to CRA directly or better not to engage them at this point ?

Any other forums like Newcomers Information Centre or settlement.org that can clear this issue ?

Its grey area hence the confusion . . .

Thanks

It is definitely a grey area. A driving license is considered a secondary tie, and by itself would likely not be enough to make the CRA deem you a resident. If you don't have a house here, or your immediate family members don't live here, then you should be fine. However, if you open up bank accounts, maintain a credit card, apply for OHIP, etc., these may put you over the edge. Everything is considered on a case-by-case basis.

 

[sarimraza]

I checked the link to the CRA website and it says that they will consider both significant and secondary ties, residential ties are significant -- getting a DL is just ONE secondary tie

In and of itself a DL only (without any significant or ANY OTHER secondary tie) in this particular case, does not logically seem to qualify the individual liable to file tax returns . . .

but its still bit grey area -- so not sure whether i should apply or not

thanks

 

[sarimraza]

Can someone plz clarify this issue with a simple yes or no ? or should i talk to CRA directly ?

I have no primary residential ties or secondary ties to canada except that i will apply and plan to get ontario drivers license, in and of itself does this establish my ties sufficiently to deem me as liable to file taxes ?

Thanks

 

[zardoz]

Based on personal experience with my wife, an Ontario drivers license does not in itself cause you to be considered as a tax resident. She was out of Canada for 10 years but still held a DL as well as Canadian credit cards and a bank account. There have been no issues with the CRA considering her to be a tax resident.