I was wondering what have you done, did you find out that you need or not to pay taxes as I am in a similar situation
Tax return when abroad and PR status
- Thread starter tulip_001
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Thank you for the answer. I am in the exact same situation: Landed in Canada to confirm PR, opened a bank account and credit card, but have only physically lived there for less than two weeks. I have not filed returns this year. I have zero income in Canada and haven't lived there for 183+ days as mentioned in another answer.
Is there a reputable/competent tax agency/consultant that you might recommend. I don't mind spending a few bucks to get professional advice so it doesn't come bite my in the butt years down the line?
You are not a resident for tax purposes. If you want to confirm with anyone, call CRA.
Hi. Would appreciate if someone can help me. We migrated 1.5 yrs ago and looking at the job situation in Canada , i decided to continue my job abroad while my family settled in Canada. I paid the full tax on my world wide income eventhough i was not living there and was considered a resident of canada. My question is since i paid full taxes in canada shouldn't my time be counted towards my PR days since i am considered a resident?
No your time does not count even if you paid taxes on your income. Your family is living in Canada and using various services so of course your family is expected to contribute to the tax base.
Thank you for your reply . Any way we can reduce the amount of taxes apart from RRSP?
So I'm a resident for tax purposes but considered a non resident for PR days calculation?
No. Your family is receiving benefits from living in Canada like schooling, healthcare, child tax benefit, etc. so you have to pay taxes like other parents. There are things that shelter money like trusts but that doesn't change the taxes on your income.
You don't have to pay tax to CRA and don't have to apply for non-resident for tax popouse. You just don't file tax return. You can send them a letter telling them when you emigrate. It just up to you. That's what CRA officer told me, after he spoke with someone knew this. As you don't have any income from Canada including interest above $50 and you live in Canada less than 183 days, you are NOT a tax resident, or if you want, you can choose to be a tax resident. Residence ties are very tricky but at the end, it does up to you to make your decision.
This is true if you are single. If your family lives in Canada your family has to declare the international income.
Yes, spouse and dependent kids are the most important factor to determine your tax status. House, bank account, car registration, membership...those are nothing if you insist you are a non-resident for tax purpose.
Confused? @pleasehelpme! has a family living in Canada so his family income will be taxed as I previously noted.
To be clear, the relationship between tax filing status and immigration status is largely evidentiary. Neither dictates the other. Each may be considered relevant to the other. BUT each are determined independently, based on criteria specific to each, determined independently by the respective government agencies: CRA and IRCC.
The CRA has its own rules for determining tax filing status and tax payment obligations.
IRCC has its own rules (pursuant to IRPA) for determining compliance with the PR Residency Obligation.
Thus, CRA has criteria pursuant to which it determines key things including:
-- who is a resident of Canada and must file a resident tax return (pursuant to which world wide income needs to be reported; actual tax obligation depends on other factors, such as treaty arrangements with country that is source of income)
-- who is a non-resident of Canada but nonetheless must file a non-resident tax return (and pay taxes on Canadian income)
-- who is a non-resident and not required to file any tax return
-- who may want to file a return even if it is not necessary (such as to qualify for this or that benefit)
-- who is a non-resident of Canada but nonetheless must file a non-resident tax return (and pay taxes on Canadian income)
-- who is a non-resident and not required to file any tax return
-- who may want to file a return even if it is not necessary (such as to qualify for this or that benefit)
In contrast, for purposes of determining compliance with the PR Residency Obligation, it is NOT dependent on residency. Compliance with the PR RO depends on PRESENCE. However, a person's "residency" is a relevant factor when IRCC is weighing evidence of actual presence. The actual calculation in a PR RO compliance determination, however, is based on counting days physically present in Canada (with some possible credits otherwise but not likely relevant here).
That is, the PR RO is NOT actually a "residency" obligation. It is a physical presence requirement. A 2/5 years in Canada rule. A PR might never establish residency in Canada and still meet the PR RO (and indeed, many PRs spend most of their time abroad but still manage to spend at least 730/1825 days in Canada).
In contrast, a PR might establish residency in Canada but be employed abroad so much he or she spends more than 1095 days in a period of five years (1825 days) abroad, and thus fail to comply with the PR RO.
Otherwise, I am skeptical of the tax advice some have posted here. My sense is that in some ways it is more complicated. And, more to the point, there are probably alternative approaches, recognizing however that each has consequences. Nonetheless, tax filing obligations (which is one thing), and tax paying obligations (which is another), and various entitlements to benefits (which are yet another thing), are determined according to CRA rules, and those rules are largely mandatory. Not a whole lot of room to play games, even though more than a few tee it up and try.
Main thing is:
-- recognize that CRA prescribes the rules governing who must file a tax return, what kind of return, and what taxes must be paid; these rules apply regardless immigration status
-- recognize that IRPA (the immigration law) and IRCC dictate the PR's obligations for keeping PR status, pursuant to which a PR is obligated to be physically present in Canada for two in every five years; actual presence is what counts
No income from Canada, not live in Canada more than 183 days every year, you don't need to file a return. But if your spouse live in Canada more than 183 days, even no income from Canada, he/she has to file and it's very likely CRA will ask you to file your world income. So the only way to not to file, any family member can not live in Canada more than 183 days and get 0 income from Canadian source. To keep your RO, you need to count days carefully but it does works (2/5 rule), or one family member is citizen and you both live togather but outside Canada could be even easier to make you non-resident for tax purpose and at the same time fulfil RO requirement.