Tax Filing in Canada
Moderator: Mark T Serbinski CA CPA
Tax Filing in Canada
I moved to USA in June 2005. Since then i only went to Canada to get my new TN & by any means i can consider my self non resident.
Since 2005 I have not filed tax return in Canada,.
Do i need to file tax return in Canada too in addition of USA tax filing.
Can i file Canadian return with $ 0 dollar income.
Since 2005 I have not filed tax return in Canada,.
Do i need to file tax return in Canada too in addition of USA tax filing.
Can i file Canadian return with $ 0 dollar income.
You have been a non-resident since 2005 and are no longer required to report world income to canada.
You *should* have filed a departure return for 2005, informing CRA that you had left and complying with the special rules for departure back then. If you want to give yourself peace of mind you could review your 2005 tax year, reviewing the Emigrants Guide for compliance.
For 2006 forward, you should NOT file a regular Cdn return reporting $0 income as this is false. You shoud simply not file in canada at all.
You should make sure that anyone you deal with financially in Cnada knows you are non-resident.
You *should* have filed a departure return for 2005, informing CRA that you had left and complying with the special rules for departure back then. If you want to give yourself peace of mind you could review your 2005 tax year, reviewing the Emigrants Guide for compliance.
For 2006 forward, you should NOT file a regular Cdn return reporting $0 income as this is false. You shoud simply not file in canada at all.
You should make sure that anyone you deal with financially in Cnada knows you are non-resident.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Canadian taxes and a registered business..
Just wondering how having Canadian drivers' license, health card or a bank account relate to TN holder's non-resident status. Following information on Canada Revenue Agency site seems to worry me a bit as I have all three of above.
[url]http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... g-eng.html[/url]
"Other ties that will be taken into account in determining your residency status include:
a Canadian driver's license;
Canadian bank accounts or credit cards;
health insurance with a Canadian province or territory"
Also, what action (if any) is required if a non-resident had a business incorporated (number corporation) in Canada? Does it need to be cancelled/closed and do $0 taxes need to be submitted?
[url]http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... g-eng.html[/url]
"Other ties that will be taken into account in determining your residency status include:
a Canadian driver's license;
Canadian bank accounts or credit cards;
health insurance with a Canadian province or territory"
Also, what action (if any) is required if a non-resident had a business incorporated (number corporation) in Canada? Does it need to be cancelled/closed and do $0 taxes need to be submitted?
The Cdn website speaks for itself: having and maintaining those things betrays intent to remain or return to canada.
If your moving to US however, the treaty definition of residence trumps all these of course. But a non-treaty country move (like saudi) would be problematic. The CRA definitions are talking to all sorts of situations.
But, really, how can you maintain a DL and heath card while not living in canada. Truth is your cards are either invalid, or you still live and intend to live in canada.
If your moving to US however, the treaty definition of residence trumps all these of course. But a non-treaty country move (like saudi) would be problematic. The CRA definitions are talking to all sorts of situations.
But, really, how can you maintain a DL and heath card while not living in canada. Truth is your cards are either invalid, or you still live and intend to live in canada.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
My cards are valid till 2010 and I have been living in US on TN for about a year and half.
Not sure what you mean by how can I maintain them. I don't have to do anything to maintain them. I can have them cancelled probably somehow however as of now, they are just that - valid till 2010.
I don't understand on what basis you came to the conclusion that I live or intend to live in Canada when in fact I don't. If that was the case there is no need for me to say it otherwise. By the way, I do know a few other folks on TN1 who still have these cards valid.
Not sure what you mean by how can I maintain them. I don't have to do anything to maintain them. I can have them cancelled probably somehow however as of now, they are just that - valid till 2010.
I don't understand on what basis you came to the conclusion that I live or intend to live in Canada when in fact I don't. If that was the case there is no need for me to say it otherwise. By the way, I do know a few other folks on TN1 who still have these cards valid.
Did you read my post at all?
The CRA views these as ties. Minor ties. But ties that CRA could view as sufficient to make you resident in sokme cases. Why do you think they put those on their list? You asked the question.
If you would investigate the validity of your DL and medical cards I'm sure you would fine that they became invalid within days of your departure from canada (your departure from that province actually), so they are likely invalid, regardless of the date on them.
As I ALSO said, those moving to the US or another treaty country don't need to worry about this as the treaty definition of residency trumps these minor ties.
So chill.
The CRA views these as ties. Minor ties. But ties that CRA could view as sufficient to make you resident in sokme cases. Why do you think they put those on their list? You asked the question.
If you would investigate the validity of your DL and medical cards I'm sure you would fine that they became invalid within days of your departure from canada (your departure from that province actually), so they are likely invalid, regardless of the date on them.
As I ALSO said, those moving to the US or another treaty country don't need to worry about this as the treaty definition of residency trumps these minor ties.
So chill.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
WTF.. here we go again.
WOW .. here we go again.. WTF..
"Did you read my at all?" WTF
Nelsona, you come across as very rude and arrogant person in these and other forums. I kind of expected this stupid language from you even before posting my question here. You may know a thing or two about TN/Taxes and you in fact end up helping people in these forums but it all goes down the drain and isn't really appreciated because of your attitude. The language you use is offending, you make people feel stupid and indirectly call them liers over and over again in these forums. Time to fix your attitude big guy. What are you so bitter about?
"Did you read my at all?" WTF
Nelsona, you come across as very rude and arrogant person in these and other forums. I kind of expected this stupid language from you even before posting my question here. You may know a thing or two about TN/Taxes and you in fact end up helping people in these forums but it all goes down the drain and isn't really appreciated because of your attitude. The language you use is offending, you make people feel stupid and indirectly call them liers over and over again in these forums. Time to fix your attitude big guy. What are you so bitter about?
Many TNers are under the (false) impression that the validity date on their Provincial ID cards carries some weight. It does not. Best to know this ahead of time in the event one retirns to canada and thinks they are fine and dandy with their DL and OHIP cards.
Until about 2003, having DL, OHIP, even library card and passport, was used in a points system toi determine tax residency. CRA (not me) felt that this betrayed INTENT (their word, their definition) to return to canada, and thus would deny a determination of non-residency, even for those clearly moving to US.
This practice is no longer followed however, and the notion (and the legal definition) of deemed non-resident (DNR) has become clearer. It applies solely to those who maintain substantial Cdn residential ties, much more that DL and OHIP, but who ALSO have the requisite ties in another treaty country, like US. It has gotten to the point that even those with spouses and houses in canada can be come deemed non-resident, and be treated axactly like a non-resident (departure return, deemed disposition, no more reporting of world income).
Note that there is clear case law that maintaining these minor ties IS sufficient to have CRA determine that you are resident if you move to a non-treaty country (like much of the caribeean or middle east).
And getting rid of these avoids any questions from CRA.
So, when I question the validity of Cdn IDs, it is not from a Cdn tax residency point of view, it is more to make our dear readers realize that they should not rely on these cards still being valid. same aplies for car insurance.
...and I've mellowed over the years, little lady. Thanks for your concern.
Until about 2003, having DL, OHIP, even library card and passport, was used in a points system toi determine tax residency. CRA (not me) felt that this betrayed INTENT (their word, their definition) to return to canada, and thus would deny a determination of non-residency, even for those clearly moving to US.
This practice is no longer followed however, and the notion (and the legal definition) of deemed non-resident (DNR) has become clearer. It applies solely to those who maintain substantial Cdn residential ties, much more that DL and OHIP, but who ALSO have the requisite ties in another treaty country, like US. It has gotten to the point that even those with spouses and houses in canada can be come deemed non-resident, and be treated axactly like a non-resident (departure return, deemed disposition, no more reporting of world income).
Note that there is clear case law that maintaining these minor ties IS sufficient to have CRA determine that you are resident if you move to a non-treaty country (like much of the caribeean or middle east).
And getting rid of these avoids any questions from CRA.
So, when I question the validity of Cdn IDs, it is not from a Cdn tax residency point of view, it is more to make our dear readers realize that they should not rely on these cards still being valid. same aplies for car insurance.
...and I've mellowed over the years, little lady. Thanks for your concern.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
little lady?? again.. and here i thought you would stop it..
you just can't help yourself, can you. it probably in your nature to degrade and insult people.
forums admins; kindly take a notice of this and if you want to check more of his insults, just check on tn related forums as well (same handle)
you just can't help yourself, can you. it probably in your nature to degrade and insult people.
forums admins; kindly take a notice of this and if you want to check more of his insults, just check on tn related forums as well (same handle)
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- Joined: Sat Jan 24, 2009 12:46 pm
whoa. I didn't know that tax help forums were such exciting places. The truth is that nelsona gives, er, FREE ADVICE? FREE, as in taking HIS TIME to do something that might help total strangers? FOR NO REASON?
I mean, personally, he could be like "No, you need to file form 3520-A, you dumb ^%$#@" and I'd be like, wow, thanks dude!
I mean, personally, he could be like "No, you need to file form 3520-A, you dumb ^%$#@" and I'd be like, wow, thanks dude!