Residency - How to be considered a Deemed Resident

[blitzloper]

Hello,

- I'm a Canadian federal government employee living outside of Canada.
- I don't have residency in any other country, as I have diplomatic status.
- I'd like to be considered a deemed resident of Canada (i.e. no province) in 2010; I last filed as a Quebec resident.
- I will also be returning to Canada for one month (September) and renting an apartment in Ontario.

I'd really like to stop being considered a Quebec resident, as it's costing me a fortune in provincial taxes. I have a car in storage in Quebec, an (invalidated) Quebec health card, and a valid Quebec driver's license.

Any advice on steps to take to become either an Ontario or Deemed resident? I can cancel the health card completely, and transfer the license to Ontario, for example.

On December 31st, I expect to be in Asia.

Thanks in advance for your expertise.

[nelsona]

A Govt employee becoing a deemed resident faces the same problems a 'regular' person faces trying to becomea non-resident when moving to a non-treaty country, as there is little opprortunity to use a traty-based claim of non-residency.

Even if you have no house and no spouse in canada, minor ties can make you a factual resident. So, divesting yourself of everything that would indicate an eventual return to canada would be a minimum.

Your QC DL and RAMQ are of little use once outside QC, so no point holding these -- as long as you have alternatives. The BIG problem is your car in storage. I would get rid of that.

I would go so far as to say that if you got rid of that, and nothing else,. you could get a successful determination by submitting an NR73 to CRA. That determination would in almost all cases apply to MRQ as well.


I don't think you would be able to 'move' to another province at this time, short of buying/renting a home there (if you do, try alberta for lowest taxes). You should be focusing on breaking residential ties and getting deemed status.

[nelsona]

Hey, I see you are a US citizen. By rigts then you can use the treaty to determine residency (since US citizens are tax residents by default).

So, you should have become deemed the moment you went to US last year , and continue to do so until you go to Asia. Use that time to sell your car.

I would fix your Cdn return and Qc. You will have a departure date.

[nelsona]

Just on deemed resident of Quebec. MRQ is particulary strict on deemed residnts, and uses the period BEFORE leaving canada as a basis for keeping you deemed in QC.

You may have trouble getting out of this using the deemed resident route, even if you divest everything.