To not become a non-resident for tax purposes quesetion

[bricksonly]

For OHIP you actually need to be physically present in Ontario for a certain number of days to meet the residency obligation. You can’t just keep residential ties and still use those days to qualify for OHIP. If you keep ties in Canada that doesn’t guarantee that you can declare yourself a nonresident for tax purposes. It really depends on the ties which is why it is wise to let CRA determine whether you are a tax resident or not. Saying that you and your family have left Canada does not guarantee that you are not still a tax resident.

Trust me, it's really up to you to make the decision to be or not. The most important thing, call them, say you have move to a new address abroad. You can still keep your minor ties with Canada except Health Card and DL.

 

[jasbir101]

"Residency" for tax purposes is separate and apart from "residency" for other purposes (even though there is considerable overlap in relevant factors, and each can be a relevant factor in regards to the other).

Moreover, in regards to qualifying for various kinds of benefits, those can involve eligibility requirements that combine other elements in addition to residency. The Ontario Health Insurance Plan (OHIP), for example, requires ACTUAL PRESENCE in Canada (for 153 days during any 12 month period of time) in ADDITION to being a "resident" of Ontario.

A person with just about any ties to living or working or obtaining income in Canada can declare they are a tax resident of Canada with almost NO risk Canada Revenue will make inquiry otherwise, let alone conclude otherwise. But, again, qualifying for various benefits, credits, deductions, and so on, often, if not usually or nearly always, depends on more than just being a resident for tax purposes.

And of course being a tax resident of Canada does not preclude another country from treating the individual as a tax resident of that country.

Leading to . . .



It warrants keeping the information you referenced, published by the Kalfa Law firm, in context. It is about avoiding being treated a resident for tax purposes in multiple countries, which otherwise would typically result in a substantially greater tax burden.

If the circumstances are such that an individual might be considered a resident for tax purposes in more than one country, most countries (nearly all?) will have NO problem with the taxpayer filing a return and paying taxes as a tax resident in that country EVEN IF they have also filed a return and paid taxes as a tax resident in another country.

Thus, for a taxpayer who files a Canadian tax return as a resident of Canada, for tax purposes, there is virtually no risk that Canada Revenue would disagree. This does not conclusively determine eligibility for benefits, credits, or deductions.

Where the CRA gets involved in determining if a taxpayer is a tax resident of Canada, or not, is in regards to individuals who file claiming they are not a resident of Canada for tax purposes, or who have failed to file a tax return when the CRA has reason to believe they should have.

The Annoying Greyness of Who is Resident for Tax Purposes:

This is largely the product of how complex the circumstances of real life can be for many, many people in a globalized economy in conjunction with very open borders and the prevalence of people with status to live and work in multiple countries. The variables are many, subject to all sorts of contingencies and conflicts. And there is no shortage of individuals who will go to great lengths to more or less game the system, to not just avoid tax obligations (legally) but to evade them contrary to the law and rules.

Ultimately there are so many variables that, in complicated cases, simple rules cannot adequately dictate tax residency with any degree of reliable certainty. For those with complicated situations, as @owleroz suggested, best to consult with qualified tax professionals (and this does not include those out-of-the-box companies).

great information . Any tax professional you can point to that has cross border (USA Canada) tax understanding ?

 

[dpenabill]

Any tax professional you can point to that has cross border (USA Canada) tax understanding ?

No. Wish I did, particularly an affordable one in my neck of the woods (I live and am still operating my own business more than a thousand km from the nearest major urban area in this province). But I don't. And now with retirement income streams from multiple countries with significantly different rules regarding what constitutes taxable income, navigating what has become a quagmire is, well, a challenge.

That said, for U.S. and Canadian tax matters in particular, I have known some American-citizen professionals living and working in Canada who have found and use tax professionals in the U.S., who they rely on for their U.S. tax matters (American citizens must file a U.S. tax return even if they have no taxable activity or income in the U.S., no residential or business ties in the U.S.) in coordination with their Canadian tax affairs.

 

[jasbir101]

No. Wish I did, particularly an affordable one in my neck of the woods (I live and am still operating my own business more than a thousand km from the nearest major urban area in this province). But I don't. And now with retirement income streams from multiple countries with significantly different rules regarding what constitutes taxable income, navigating what has become a quagmire is, well, a challenge.

That said, for U.S. and Canadian tax matters in particular, I have known some American-citizen professionals living and working in Canada who have found and use tax professionals in the U.S., who they rely on for their U.S. tax matters (American citizens must file a U.S. tax return even if they have no taxable activity or income in the U.S., no residential or business ties in the U.S.) in coordination with their Canadian tax affairs.

thank you for replying
I tried calling 3 tax professionals who understand cross-border as per their google reviews but most of them not accepting new clients ...

Trying to find answers to my situation
My spouse has been working in Canada on a work permit since 2021 paying taxes here and staying with our kid.I have been working and staying in the USA on a work visa and I am a resident Ailen for tax purposes in the USA. I have been visiting my spouse in Canada on a tourist visa.In Jan 2024 both of us got PR.My wife and kid continue to stay in Canada while I am working and staying in the USA on a work visa and visiting them.


looks like I am deemed non resident of Canada as I stay in the USA and Canada has tax treaty with USA

Summary of my visits to Canada

• Year 2021 0 days
• Year 2022 22 total days( Canada tourist visa) -2 trips in total
• Year 2023 30 total days (Canada tourist visa) - 3 trips in total

1 Do I had to pay Tax in Canada for 2021, 2022? In my wife’s Canada tax return under the spouse section my gross income was declared and I was added as non resident

2 In Jan 2024 we became PR do I have to pay tax in Canada for tax year 2023 as resident?

 

[dpenabill]

I cannot come anywhere close to answering specific tax questions . . . well, except the obvious, what is clearly explained in the basic instructions.

Be aware this is an immigration forum, NOT a tax forum. There is often tax advice proffered here which, at best, is suspect, some just plain obviously not good if not outright erroneous.

My sense, albeit this may be more of a GUESS, is that just the fact you are now a PR of Canada does NOT change your tax filing or tax payment obligations in Canada. (As discussed here previously, "residency" for tax purposes, resident status for immigration purposes, and residency for other purposes, are not the same even though many of the relevant factors at least overlap and are otherwise similar.)

So there is probably no CHANGE to your specific obligations, vis-à-vis Canadian obligations, for previous years. Of course the question is whether you and your spouse have properly complied with Canadian tax filing and payment obligations during those years . . . generally, but NOT necessarily, both spouses may need to file a tax return in Canada if one or the other needs to file a return, and beyond that it is usually better for both to file a return even if it is not necessary (but here too, this is usually, not always), noting that claims for certain benefits, deductions, and such, depend on BOTH spouses filing a return . . . it is OK to file separate returns, that is, it is not necessary to file a joint return, even if both must file a return.

Answering whether or not tax must be paid is a separate issue. First one needs to know if they are obligated to file a return, or if even if not required whether it is better to file a return. Then, if filing a return, figure out what to actually submit, and working through the applicable forms then figure out what tax, if any, needs to be paid.

Any true and decent tax professional should be able to help you sort most of this out. Experience in dealing with cross-border issues is probably not necessary to help you determine if you need to file a return and if so, what sort of return. Not one of those out-of-the-box tax consultants (or whatever label they have), but a genuine tax accountant.

And of course even if you are relying on a tax professional, be sure to work your way through the information provided online by CRA. It takes time. It demands revisiting and re-reading. It is tedious. It can be damn right confusing and frustrating. Take deep breaths, set it aside for a bit, and then go back into it. Remember to read focusing on what it says, what it means, NOT on what benefits you.

I do not often say "trust me," but in regards to understanding the pain, yeah, trust me, been riding hard too long through this rough country, through the thickets of taxation jungles. Makes immigration issues seem like a walk in the park, a nice city park on a pleasant sunny day, flowers blooming, birds chirping.

thank you for replying
I tried calling 3 tax professionals who understand cross-border as per their google reviews but most of them not accepting new clients ...

Trying to find answers to my situation
My spouse has been working in Canada on a work permit since 2021 paying taxes here and staying with our kid.I have been working and staying in the USA on a work visa and I am a resident Ailen for tax purposes in the USA. I have been visiting my spouse in Canada on a tourist visa.In Jan 2024 both of us got PR.My wife and kid continue to stay in Canada while I am working and staying in the USA on a work visa and visiting them.


looks like I am deemed non resident of Canada as I stay in the USA and Canada has tax treaty with USA

Summary of my visits to Canada

• Year 2021 0 days
• Year 2022 22 total days( Canada tourist visa) -2 trips in total
• Year 2023 30 total days (Canada tourist visa) - 3 trips in total

1 Do I had to pay Tax in Canada for 2021, 2022? In my wife’s Canada tax return under the spouse section my gross income was declared and I was added as non resident

2 In Jan 2024 we became PR do I have to pay tax in Canada for tax year 2023 as resident?

 

[jasbir101]

I cannot come anywhere close to answering specific tax questions . . . well, except the obvious, what is clearly explained in the basic instructions.

Be aware this is an immigration forum, NOT a tax forum. There is often tax advice proffered here which, at best, is suspect, some just plain obviously not good if not outright erroneous.

My sense, albeit this may be more of a GUESS, is that just the fact you are now a PR of Canada does NOT change your tax filing or tax payment obligations in Canada. (As discussed here previously, "residency" for tax purposes, resident status for immigration purposes, and residency for other purposes, are not the same even though many of the relevant factors at least overlap and are otherwise similar.)

So there is probably no CHANGE to your specific obligations, vis-à-vis Canadian obligations, for previous years. Of course the question is whether you and your spouse have properly complied with Canadian tax filing and payment obligations during those years . . . generally, but NOT necessarily, both spouses may need to file a tax return in Canada if one or the other needs to file a return, and beyond that it is usually better for both to file a return even if it is not necessary (but here too, this is usually, not always), noting that claims for certain benefits, deductions, and such, depend on BOTH spouses filing a return . . . it is OK to file separate returns, that is, it is not necessary to file a joint return, even if both must file a return.

Answering whether or not tax must be paid is a separate issue. First one needs to know if they are obligated to file a return, or if even if not required whether it is better to file a return. Then, if filing a return, figure out what to actually submit, and working through the applicable forms then figure out what tax, if any, needs to be paid.

Any true and decent tax professional should be able to help you sort most of this out. Experience in dealing with cross-border issues is probably not necessary to help you determine if you need to file a return and if so, what sort of return. Not one of those out-of-the-box tax consultants (or whatever label they have), but a genuine tax accountant.

And of course even if you are relying on a tax professional, be sure to work your way through the information provided online by CRA. It takes time. It demands revisiting and re-reading. It is tedious. It can be damn right confusing and frustrating. Take deep breaths, set it aside for a bit, and then go back into it. Remember to read focusing on what it says, what it means, NOT on what benefits you.

I do not often say "trust me," but in regards to understanding the pain, yeah, trust me, been riding hard too long through this rough country, through the thickets of taxation jungles. Makes immigration issues seem like a walk in the park, a nice city park on a pleasant sunny day, flowers blooming, birds chirping.

Thanks for you thoughts .Will keep trying..Lots of grey area in tax rules ...Should have make sense if there were examples given in tax laws so comon people like me understand