Intentionally starting the statute of limitations clock

[chronusfree68]

Dual U.S.-Canada citizen, used to live in Canada prior to 2004, living primarily in the U.S. since then (and naturalized as U.S. citizen in the process), even though later on (2018) I got married and my wife currently lives in Canada. I don't have a home in Canada.

Based on my facts/circumstances, a cross-border lawyer determined that I would be considered a non-resident of Canada from the tax perspective. I file U.S. tax returns every year but am not required to file a Canadian tax return if I don't have Canada-sourced income.

However, given that there is a risk that CRA may incorrectly perceive me to be a Canadian resident based on my significant ties, it may also be a good idea for me to file non-resident tax returns and receive notices of assessment from the CRA regularly (even when I'm reporting zero or a very small tax obligation to the CRA year after year), such that I proactively start the statute of limitations clock, and the CRA does not go back indefinitely to reassess on the basis of my residency status.

What is the best way to generate a small, zero or near-zero tax slip and/or liability in Canada as an "excuse" to file non-resident with the CRA year after year under the U.S.-Canada tax treaty? I used to receive a T4A in Canada, but my Canada income will cease this year. I could keep a Canadian bank account open and earn interest, but my understanding is that such interest is reportable in the U.S. under the treaty, not in Canada. I could look into purchasing an investment property in Canada and file Section 216, but that's a rather hefty financial decision. Please advise.

[nelsona]

It may be simpler just to file an NR73 or NR74.

Your spouse should be naming you n her return, and reporting your world income on page 1. Thus they know you exist. They haven't asked about you yet, so I would not worry about them coming after you retroactively.

The only way that you could be denied "deemed non-resident" (which is by definition one who has residential ties in Canada but outweighs these with ties in another treaty country, like US) is if you regularly visit your spouse in Canada, rather than she visit you. This would demonstrate your "centre of vital interests" to be in Canada. So watch to not do this, and you will be fine.