Proof of severing ties with Canada

trentfrog · Post by **trentfrog** » Sat Jun 27, 2015 5:30 am

I am in the process of severing my ties with Canada and need to know the correct way to go about it. I left Canada in 2006 but only decided to file for non residency now. I have been told that I should always have proof by sending letters to cancel my Ontario Health Card, bank accounts, credit cards and that these letters must have my overseas address on them? Is this true?

I can cancel most of my things by phone, which is much easier and therefore would not have written proof. What should I do? I have to cancel my credit card, Ontario Health Card and online banking account.

nelsona · Post by **nelsona** » Sat Jun 27, 2015 7:53 am

What country did you move to?

nelsona · Post by **nelsona** » Sat Jun 27, 2015 8:13 am

The reason I ask, (and you refused to answer this last time you broached the subject), is that if it is a treaty country, you don't have to provide any proof of breaking ties, you simply prove that you are living and paying income tax in that other country.

trentfrog · Post by **trentfrog** » Sun Jun 28, 2015 5:41 am

Sorry. I forgot to say. I am now living in Spain. There is a tax treaty and the accountant I have contacted to help me with this still wants me to break secondary ties. At the moment I have two bank accounts, a credit card, driver's licence, RRSP and passport. I know I should have cancelled my health card and driver's licence a long time ago but I never got around to it.

I am in the process of cancelling one bank account, the health card, and the credit card. I want to keep the rest. Several people have told me even though there is a tax treaty I should try to cancel as many ties as possible and make sure I can provide written proof of cancelling them in case the CRA wants proof. Is this true? It seems very old fashion to write letters since most of this these things can be cancelled on the phone these days (except the health card).

Thanks in advance any advice you can provide.

nelsona · Post by **nelsona** » Sun Jun 28, 2015 7:56 am

I disagree. however, since you really left in 2006 and continued to file Cdn taxes, at this point it is like you need to "leave again".

But you should not cancel your bank account and credit card. Your DL has not been valid for many years.

CRA will not want proof, since you live in treaty country and don't even have abn address in Canada.

trentfrog · Post by **trentfrog** » Sun Jun 28, 2015 11:32 am

Thank you for your advice. Although I am more confused than ever. I have spoken with three accountants and they all say the same thing. Proving residency should not be a problem because of the tax treaty but I should still reduce my ties to Canada as much as possible to claim non tax residency in Canada.

They want to amend the 2006 tax return into a departure return and amend the other returns I did after that (2007-2009) because I should have been non resident from 2006. They say the CRA will do an assesment in 3-4 months (probably won't deabate the amended returns) and that they will request I return any GST rebates I was given over those years I filed.

Help?

nelsona · Post by **nelsona** » Sun Jun 28, 2015 5:58 pm

If you have al these accts working for you, why are you asking for free advice here?

trentfrog · Post by **trentfrog** » Wed Jul 01, 2015 5:07 am

Thanks for your responses. Calling the CRA to get final say. Many thanks