Am I a Canadian Tax Resident?

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grrhuman
Posts: 5
Joined: Wed May 13, 2020 11:04 pm

Am I a Canadian Tax Resident?

Post by grrhuman »

Hi All,

I find myself in a potential sh*tstorm so to speak. Please help me understand if I'm a Canadian tax resident or not, even though I don't physically live in Canada.

Here is my situation

1. Immigrated to Canada in 1997 as a child. Obtained Canadian citizenship sometime in the 2000s.
2. Graduated from a Canadian University in 2013
3. In 2013, found a job in the US and moved there. Kept Canadian bank account but severed all residential ties, drivers license and medical coverage. No personal property or investment in Canada.
4. In 2013, filed Canadian departure tax. CRA website indicates "EMIGRANT" filing
5. In 2014, married a Canadian spouse who stayed in Canada to this day.
6. I continue to live and work in the US to this day. I travel to Canada couple of times a year (never exceeding 3 month in a year)
7. My 2014/2015 Canadian tax filing showed Married status and NON-RESIDENT filing status.
8. I stopped filing Canadian taxes starting in 2016.
9. My spouse's Canadian tax filing includes my name and my SIN number
10. I have still have no property or investment in Canada. My wife and I live separate financial lives.
11. Have been filing as US resident 1040 tax form since 2013

Questions:

a. Should I file a N73R to determine my residency status in Canada even though CRA never asked either me or my wife?
b. Can or does the US/Canada tie-breaker treaty come into play? How will it play out?
c. Does significant residential tie in Canada (such as a spouse and a place to stay), automatically mean I have to pay Canadian taxes?
d. Would the following tax court cases apply in my situation? https://taxpage.com/articles-and-tips/t ... in-canada/

Thanks you all in advance. Happy to add any relevant details to my story if helps to clarify my situation
Bubba Gums
Posts: 54
Joined: Tue Jul 15, 2014 7:20 am

Re: Am I a Canadian Tax Resident?

Post by Bubba Gums »

Are you a US Citizen?
grrhuman
Posts: 5
Joined: Wed May 13, 2020 11:04 pm

Re: Am I a Canadian Tax Resident?

Post by grrhuman »

I'm a US green card holder. Not citizen
Bubba Gums
Posts: 54
Joined: Tue Jul 15, 2014 7:20 am

Re: Am I a Canadian Tax Resident?

Post by Bubba Gums »

You are a permanent resident of the United States. It sounds like you have a substantial presence in the United States and a habitual abode there. Unless you have a third country with which you have a close relationship, I would say you are a US tax resident and a Canadian non-resident.

a. No. If they want this, they will require it, otherwise it serves you no purpose other than to open you up to b. and c. and d.
b. No. Look to para 1 of Article IV.
c. No. "Having a place to stay" for a few nights while visiting, is not the same as having a domicile.
d. Maybe.

Your say below your situation is complex. Close your bank account in Canada. Limit your time in Canada, have your spouse visit you. Do not create additional ties in Canada. Your intentions also matter, even though it is not stated that way. Your domicile is where you intend to remain permanently and indefinitely and where you intend to return, whenever absent. If you say you are a non-resident and take steps to that aim by severing your ties, then so it is. You might meet with an immigration attorney about the possibility of filing for US citizenship. Visit a doctor and dentist in the United States routinely. Get a pet in the United States; I like fish. Take your clothes to the cleaners in the United states. Vote (many states and localities have no citizenship requirement). Join a church. Buy a resident fishing/hunting/state park license. Open a traditional, roth and individual investment account in the United States. You seem enterprising, incorporate your LLC in the US. Buy 2 cemetery plots. Join a civic organization. Become a member of the American association of associations. etc....
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Am I a Canadian Tax Resident?

Post by nelsona »

d. There is nothing complex in this, You are non-resident, no need to look at court cases, etc.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
grrhuman
Posts: 5
Joined: Wed May 13, 2020 11:04 pm

Re: Am I a Canadian Tax Resident?

Post by grrhuman »

Hi Bubba Gums and Nelsona,

Thank you for your response. It makes me feel a lot better.
I will implement your suggestions to makes sure my ties to US is very strong and undisputed

I will not voluntarily file a NR73 because that could potentially open up a can of worms...

If you'd like, I'd be happy to donate some money to a charity of your choice for helping me answer a dire question. Please let me know.

Thanks again!
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