Tn Visa and CDN Tax

Junoon123 · Post by **Junoon123** » Fri Nov 23, 2012 10:04 am

Nelson as i have stated earlier on immigrationportal.com that i have been working in the US for the past 4-5 years i was contacted by a CRA agent who is persistent that i should be paying taxes in Canada and not US.

I told him that i am a Non resident but once again he told me that it does not matter since you are a CDN Citizen you have to pay taxes in Canada so you (i can get all the credit) don't know which credit he was talking about.

Here are some issues that i face after talking to CRA Yesterday.
1) I have an active bank account in Canada which pays me interest. The interest is maybe a few bucks every year so i have filed any taxes on that
2) I have an active stock account. Not paid any taxes however not made any money.
I called CRA back again and was informed to fill out form NR73 and go from their obviously i have to call the agent and confirm

Can you please advice a course of action that i can take. Whats bothering me is the stock and active bank account that ihave in Canada.
I work in the US on 1099 and have paid taxes for the past 5 years or so in US.
Any advice will be much appreciated.
Thanks

Junoon123 · Post by **Junoon123** » Fri Nov 23, 2012 10:08 am

Oh one more thing he told me that i should pay something called world wide income? Don't know what that is
Thanks

nelsona · Post by **nelsona** » Fri Nov 23, 2012 10:12 am

From your comments, it seems youare filing a tax return in canada every year. is that so?

And in the year you left, did you follow the instructions on departure tax?

From whay you say, you left 5 years ago; this means you would no lonbger file a return. Filing a retirn implies you live in canada, which would reuire reporting WORLD income. You should never have filed after your departure year.

AND you should be infromng all your Cdn financil institutes that you no longer live in Canada,

nelsona · Post by **nelsona** » Fri Nov 23, 2012 10:38 am

Looks like you have been faking an address in canada. That is a mistake.

Junoon123 · Post by **Junoon123** » Fri Nov 23, 2012 10:56 am

1) I haven't filed any taxes in Canada since 2008 like i said i have an active bank account and stock account but never filed anything never made anything over possibly 600$ each year or so. I was told by my accountant that if income is under 600$ don't worry about taxes. Which now obviously looks like wrong information.

2) I am not sure what departure tax is?
3) My financial institution both have my US Address for a long time now.
I will call them and state once again that i am not living in Canada

Correct about the Canadian address i just didnt knew that i was suppose to place a US Address

Last tax i filed in Canada was for 2008 after that filed in US.
Now the agent is asking me for my US TAX return and from what it sounds to refile tax in Canada but once again he's not sure if i should?

Based on all this do you think i am good by not filing anything in Canada?
I can see how i have made a big blunder and had i knew before i would have filed the non residency status but it would really suck to refile 4 years of tax in Canada based on a mistake (grave but alas a mistake)

Thanks

nelsona · Post by **nelsona** » Fri Nov 23, 2012 12:59 pm

This is just a case of failure to inform Canada that you left. your 2008 tax return should have had a departure date on it, and you should have paid departure tax. it is too late for them to make you pay that now.
Send NR73, along with a letter stating that you left in 2008.

do NOT send any US tax/income information to them.

Why would CRA have your Cdn address in you havent filed taxes in so long?

As to bank interst, you are not taxable in canada on it, only US.

As to your brojerage, you obvuiously never told them, as you are not allowed to have such an account in canada when living in US.

Junoon123 · Post by **Junoon123** » Fri Nov 23, 2012 1:53 pm

Thanks for all the help Nelson.

So if i understand correctly first i should fill out form NR73 along with a letter informing that i have left in 2008 and now working in the US
Possibly close the brokerage account and for income earned from bank in Canada pay taxes in the US.

The CRA agent is asking me to send him the Tax return from US for the past 4 years it just seems like he's confused as well. He's telling me something about world tax that i need to do.

Nelson only thing that bothers me is that i have a brokerage account and a bank account valid in Canada (dont have a valid license or Health card) because of this can i be liable to pay the entire tax in Canada for the past 4 years?
As always thanks for your help
Mo

nelsona · Post by **nelsona** » Fri Nov 23, 2012 4:19 pm

You should have been reporting the bank interest in US all along, Did you not do this?

I've already told you you are not liable for Cdn tax on any US income.

Junoon123 · Post by **Junoon123** » Tue Nov 27, 2012 1:54 pm

Hello Nelson thanks for all your help could you please help me with the following

Under statement of Residency
Are you under a tax treaty with another country, considered resident in the other country and not resident in Canada? (YES)

Are you subject to Income tax in that country on your world income (total income from inside and outside canada? (?)

Thanks

nelsona · Post by **nelsona** » Tue Nov 27, 2012 1:57 pm

Of course! US residents report WORLD income to IRS. That is what it means to file a 1040, just like for canada, if you file a T1 as a resident, you are supposed to report world income.

Junoon123 · Post by **Junoon123** » Tue Nov 27, 2012 2:22 pm

Thanks Nelson i spoke with the CRA person and he still wants to see my US TAx return he will send me a letter from CRA stating that he needs a copy of my IRS tax return.

Its ok with me but i am wondering should i have any reservations?
Thanks

nelsona · Post by **nelsona** » Tue Nov 27, 2012 3:36 pm

Only if you did not report Cdn income on your 1040. They could then conclude that you were treating yourself as a Cdn resident.

Junoon123 · Post by **Junoon123** » Wed Nov 28, 2012 12:53 am

Jeez how did i get into this mess. Lazyness ofcourse.

Only income i can think of was from saving account that i made maybe under 1000$ a year would that constitute as income?
Please advice

Thanks

nelsona · Post by **nelsona** » Wed Nov 28, 2012 9:12 am

That is a pretty silly question.

Junoon123 · Post by **Junoon123** » Wed Nov 28, 2012 12:53 pm

Sorry i am just concerned and a little bit worried that's why i asked
Thanks