What is my Canadian tax residency status?

woofington · Post by **woofington** » Sun Apr 14, 2013 8:05 pm

've read the CRA material on residency versus non residency and several threads but find it confusing and not been able to find any clear, concise, understandable definition of these and their application.

I left Canada to work in the US in 2011 and have only spent a handful of days in Canada since. I'm trying to determine for the Canadian 2012 tax return what my Canadian tax residency status is (its one of the very first questions on the Turbo Tax software questions).

I had no income in Canada in 2011 except for interest from Canadian bank accounts (the address registered with the bank is still a Canadian address).

I have not declared non-residency.

I've be grateful if somebody could offer guidance regarding my residency status.
Does it come down to "ties to Canada" or something more concrete and definite (I've read all about ties and their severing, and even the official government definition seems to admit its a whisky washy grey area).

Thanks

JGCA · Post by **JGCA** » Mon Apr 15, 2013 12:00 am

If you live and work now in US you are a non resident, why are you filing a CND return especially if you have no income. File a departure return for teh year you left Canada that's it no more filing in Canada needed.

woofington · Post by **woofington** » Mon Apr 15, 2013 10:31 am

I thought you could only be deemed a non resident if Canadian ties were also shown to severed, I continued to own property (through it generated no income) and have some Canadian bank accounts still.

nelsona · Post by **nelsona** » Mon Apr 15, 2013 10:48 am

One does not "decalre" non-residency. Non-residency "happens" based on fact. The fact that you live and work in US makes you -- at a minimum -- non-resident of Canada by treaty (called sa deemed non-resident), the fact that you have no Cdn residential ties, make youa non-resdient.

You need to amend your 2011 return to declare your date of departure -- THAT you DO declare -- take care of your Cdn departure tax requirements, and move on.

woofington · Post by **woofington** » Mon Apr 15, 2013 11:05 am

Thank you for the clarification.

I have just recently sold a property in Canada, if I am a non resident then I presume it will be subject to withholding tax?

However there was no profit on the sale, so no applicable taxes?

nelsona · Post by **nelsona** » Mon Apr 15, 2013 11:26 am

Get with your broker. There were forms to fill out bore/during/immedaitely after the sale, which can be troublesome, regardless of profit.

When you are a non-resident, you have to act like one.

Fructose · Post by **Fructose** » Mon Apr 15, 2013 11:35 am

By broker do you mean the realtor? If so he didn't mention anything about forms.

If you mean a lawyer/accountant I don't have one, do Serbinski offer a paid consultation service to advise me one how I should best proceed?

JGCA · Post by **JGCA** » Tue Apr 16, 2013 9:33 am

It means a professional like a lawyer or accountant to make sure you get a clearance certificate or otherwise have tax witheld on the gross proceeds, call serbinski right away so they can get on it for you.