Canadian taxes...

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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mkarim
Posts: 2
Joined: Wed Dec 22, 2004 12:11 am

Canadian taxes...

Post by mkarim »

Question: I am a Cdn citizen living in the US on a GC. If I keep my Ontario DL and Health Card, am I automatically liable for Cdn taxes? If so, how do I give up those two documents so I am not liable for Cdn taxes? Do I just give them up or do I have to submit any paperwork to Rev Can (or anyone else) about my not being a Cdn resident for tax purposes? Thanks.
nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Keeping the card is not sufficient to make you a tax resident of Canada, since the treaty states that, once youre home and family live in US, this satifies tax residency in US.

But be wary of thinking that you still have a valid DL or OHIP card! The validity of both is predicated on you LIVING in Ontario, and without previous permission, these cards expire the MOMENT you move away (or within a <u>very </u> short time).

Your OHIP memebership is likely dead already; and I would not be driving around the US with a DL that has an incorrect adress on it (since you don't live at the dress listed now do you?).

<i>nelsona non grata</i>
mkarim
Posts: 2
Joined: Wed Dec 22, 2004 12:11 am

Post by mkarim »

Thanks for the information. As long as I am not liable for Cdn taxes by keeping these cards, I am fine.

I use my GA DL.
nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

It is NOT illegal to hold multiple licenses, unless the particular state/province pairing have such an understanding.

My State for example is NOT PERMITTED to take or void a Cdn drivers license. So to cancel it I had to write to the Provincial Board, as I did with Healthcare.

Note: Under the new terms on IT-221 such pro-active renunciation is not required for those living in a treaty country (eg. US): the tie-breakers will still make you a 'deemed non-residentS.

Others states have come to such arrangements with the provinces, but it is by no means unversal.

I'm not sure what IIRC stands for rhollan, but it seems to mean 'wild guess here'[:D]

<i>nelsona non grata</i>
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