Brit moving to Canada. Residency and tax.

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egor3
Posts: 2
Joined: Sat Jul 30, 2005 2:01 am

Brit moving to Canada. Residency and tax.

Post by egor3 »

I am a British citizen working for a US based oilfield services company. I’m contracted to work for 180 days a year all over the world (Pakistan, China, middle east, some work in the US). I file a UK tax return, but I’m currently non resident in the UK for tax purposes.

My fiancee is a Canadian citizen, she has been working in the UK for 4 years on a work permit, we are getting Married in the UK sep 2006. My fiancee has applied for a job in Canada to start Sep 2006, and we intend to start our married life there and purchase a house. As I will be working ‘abroad’ for 180 days per year, along with a few trips to the UK to see my family, I will be spending less than 180 days per year in Canada (perhaps 140 days or so). I will not be required to work in Canada.

My fiancee wants me to apply for ‘permanent residency’ but will this affect my ability to be ‘non resident’ for tax purposes. Is the only alternative to visit Canada as a tourist?
Thanks in anticipation for any advice you can give.
Jonathan.
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The fact that your wife (and you) will purchase a home in Canada, will likely override any claims that you are non-resident of Canada, ESPECIALLY since you don't seem to be resident anywhere else.

You could begin a Landed Immigrant process without becoming a tax resident, as a Cdn citizen can sponsor her spouse even when neither is yet in the country, but, the 'house and spouse' in canada will make you a resident.

I'm not sure of the tax residency rules for GB, but the fact that you are not resident elsewhere right now would seem to make GB non-residency questionable, but that is not for this forum.

Cdn tax courts have consistently ruled that absent of another tax residency, even the slightest ties, or the slightest intention of ties to canada will make one a Cdn tax resident. Having a spouse in Canada, a home in Canada, and an ongoing Cdn LI process, with no other tax residency, would seem to me to be an insurmountable set ot Cdn residential ties.

<i>nelsona non grata... and non pro</i>
egor3
Posts: 2
Joined: Sat Jul 30, 2005 2:01 am

Post by egor3 »

Thanks nelsona for the info.
Jonathan
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