having a corp in canada but non-resident of canada for now

[shsamardar]

Hi

I am canadian citizen and non-resident of canada now.
resident of USA, california

when I was in canada , i had a corporation. almost three years , I am not doing any business with corportation, no income, no expense.

i and my wife as shareholders, both non residents



if I want to file tax return for this business in canada,
there is a schedule 19 , we have to fill:
http://www.cra-arc.gc.ca/E/pbg/tf/t2sch ... 19-99e.pdf

now that both me and my wife are non residents, that means 100% of shares belong to non residents. what does it mean from CCRA?


I still have my house in canada and am renting that and that is the place of my company address. ( although mailing address of company is USA )

I have not reported this corp. to usa .

how does CCRA treat this corpotation after I file this tax filing with schedule 19? do they treat the CORPORATION as non resident?

Thank you for your advice.
any advice to minimize the hassle.

[MikeC]

Nelson and Carson kindly responded here:
http://forums.serbinski.com/viewtopic.php?t=1645

As for CCRA, if shareholders are foreign then the corp is foreign, and income is taxed at a different rate. But you may want to verify this.

[Carson]

Hi
I am canadian citizen and non-resident of canada now.
resident of USA, california

when I was in canada , i had a corporation. almost three years , I am not doing any business with corportation, no income, no expense.

i and my wife as shareholders, both non residents

if I want to file tax return for this business in canada,
there is a schedule 19 , we have to fill:

now that both me and my wife are non residents, that means 100% of shares belong to non residents. what does it mean from CCRA?

I still have my house in canada and am renting that and that is the place of my company address. ( although mailing address of company is USA )

I have not reported this corp. to usa .

how does CCRA treat this corpotation after I file this tax filing with schedule 19? do they treat the CORPORATION as non resident?

Thank you for your advice.
any advice to minimize the hassle.

The corporation is still a Canadian resident corporation under the Treaty, regardless of where the shareholders (and mind and management) are located. Therefore, you still have the usual annual tax return filing requirements.

From what you've said, the corporation is dormant. So, the tax returns should be quite simple assuming there are no income earning assets. By the way, the corporation is no longer a "Canadian Controlled Private Corporation" and thus, is not eligible for the small business deduction. Having said that, if the corp is dormant , this wouldn't matter anyway.

I strongly advise you NOT to use this corporation for any activity you might have in the US. That would be messy and expensive.

Please check the link MikeC provided for information on your US reporting requirements for this Canadian corporation. You may find it simpler to just windup the corporation and be done with it.