In Jan 2001, I departed Canada to work on a H1-B until returning in May 2008 without filing a departure return for that year or subsequent year since in Canada. I severed most Canadian ties except for maintaining a bank account and not closing mutual funds held in both investment and RRSP accounts. Since returning I have not any earned income in any jurisdiction, only minimal dividends on US and Canadian investment and virtually no capital gains or interest.
My concerns are:
1) what steps are needed to do to redress the outstanding issues and whether I should consult the CRA prior to submitting a return
2) would I be considered a resident and be liable for Canadian taxes on my US incomes during those years 2001-2008. I have retained all of my US returns.
From reading some past posts, I'm comforted to find out that though this is an challenging situation, I am not unique and things are resolvable.
Thanks in advance
How to fix not filing on departure
Moderator: Mark T Serbinski CA CPA
1) at this point there is nothing to do about 2001. Its way past statute of limitations.
2) no.
The greater concern would have been if you had come and gone in the past 3-4 years. This stil would not have made you taxabale in canada, but might have raised penalty for failure to report assets at departure.
Your departure was too long ago to be a worry at this point.
2) no.
The greater concern would have been if you had come and gone in the past 3-4 years. This stil would not have made you taxabale in canada, but might have raised penalty for failure to report assets at departure.
Your departure was too long ago to be a worry at this point.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
This is a great relief to hear, but I got the impression from past posts from others on this forum that I may still not be off the hook with CRA. I don't want to have lingering tax issues which may hinder my return to work whether in Canada or the US. At the very least I want to confirm this with the CRA.
Almost no tax accountant or tax lawyer I've curbsided has much if anything to advise off the cuff, this seems to be a very unfamiliar scenario to them.
What do I need to do at this point? Talk to the CRA?
Thank you for the advice
Almost no tax accountant or tax lawyer I've curbsided has much if anything to advise off the cuff, this seems to be a very unfamiliar scenario to them.
What do I need to do at this point? Talk to the CRA?
Thank you for the advice
There isn't really anything to talk about to CRA. The trwaty made you US tax resident while you were there. Period. The only issue was departure tax. They would have hasd to get after you for that within three years, since you did file a return for that year (I assume you filed for that year, or at least owed no tax, you merely forgot to say you had left).
Now you are back, but not earning any income, so do not owe tax. Unless you meet one of the conditions under the "must file regardless" in the tax guide, you have no reason to file and nothing to worry about.
The people whio get in trouble on this are those who lesve for a non-treaty country.
Now you are back, but not earning any income, so do not owe tax. Unless you meet one of the conditions under the "must file regardless" in the tax guide, you have no reason to file and nothing to worry about.
The people whio get in trouble on this are those who lesve for a non-treaty country.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
This forum has been extraordinarily helpful, unique and invaluable to so many, and in particular the tireless contributions of Nelsona's expertise cannot be overpraised. I'll sleep much more soundly tonight and able to proceed with plans with more confidence having received his advice, thank you again.
hi
A couple of clarifications
1. The statute of limitation is for 3 years on departure tax ? Have never read that anywhere really. I thought it was like audits ie CRA can audit for any number of years going back and request departure tax also going back unlimited.
2. I didnt understand how the poster does not have to file after returning to Canada as from mid 2008 to 2011 is 3 years resident in canada.
1. The statute of limitation is for 3 years on departure tax ? Have never read that anywhere really. I thought it was like audits ie CRA can audit for any number of years going back and request departure tax also going back unlimited.
2. I didnt understand how the poster does not have to file after returning to Canada as from mid 2008 to 2011 is 3 years resident in canada.
CRA can audit the last 3 years tax returns under normal procedure meaning if you have filed they can go back 3 years from the date of the mailing of the notice of assessment they send you , its from this date so if you file late they have 3 years from that date which could be longer depends on when you filed. If you never filed a return they can ask for one at any time but normally they will ask only the last 5 years. Under the fairness package you can open up a file going back 10 years for a refund request. Under gross negligence the CRA has no statute of limitations they can go back as far as they wish but this involve criminal misconduct and fraud not normal tax filing assessments.
JG