Confused about income tax and residency.

MEWD · Post by **MEWD** » Mon Feb 07, 2011 2:43 pm

Hi, I am currently living in the Caribbean with my husband and children.
The country we are in does NOT have a tax treaty with Canada.
1.
My husband came out to work in October 2010 from Canada and I left Canada in January 2011.
We expect to live here for the entire tax year of 2011.
We are going to file this year as we both have Canadian income from 2010 should my husband also add his world income for the Oct/Nov/Dec? We are non residents as we own nothing in Canada and have very little to no ties only chequing bank accounts and passports...

2.
In mid. 2012 me and the children are returning to Canada buying property and staying while my husband will continue to work in the Caribbean.
What kind of resident will that then make him as we will have property and he will have his spouse and children there... ?

3. Is it best to file our world income every year as me and the children are intending on moving back.. Even to file as non residents just for records?

Thank you

nelsona · Post by **nelsona** » Mon Feb 07, 2011 3:11 pm

because there is no tax treaty, the earliest either of you can be considered non-resident is Jan 2011.

So, for 2010, it will be as if both you never left.

You will all be considered Cdn residents when you return in 2012. It may just be simpler to ignore the fact that you left entrirely, and keep reporting world income in canada. CRA will not view 2011 as any form of permanent departure.

MEWD · Post by **MEWD** » Mon Feb 07, 2011 3:31 pm

Ok but what about the fact that only I will be returning in 2012 and my husband will still be here earning?
Also I did phone the government to put a stop to my child tax benefit etc.. and they said just to call them when I return.
I am sure there is no treaty I am in Antigua&Barbuda West Indies..

So we just file our world income on the world income line for the future?

I just want to do this as right as possible.. so worst case scenario isn't too bad upon our return...
Thank you so much for your time trying to help I have spoken on the phone with Revenue Canada but I end up getting more confused ..

nelsona · Post by **nelsona** » Mon Feb 07, 2011 4:27 pm

Your husband will report his income on a regular Cdn return, putting the income in whatever catgory the income falls: wages, interest, etc. Any tax he pays down there would be credited on the Cdn return.