Can i depart Canada CPT56 CPP form?

peteb · Post by **peteb** » Fri Mar 10, 2017 4:15 pm

I know you are very busy right now, so I will make it quick.

My Canadian parent company sent me to work in the US for a couple of years with our US division. In 2016 I was in the US for almost 300 days. My employer used form CPT56, so I wouldnâ€™t have to pay US social security and instead continued to contribute to CPP. I received a T4 with only the CPP that was paid and a W2 slip for my US wages.

I realize I have to file a US return and Canadian return. But can I depart Canada in 2016? Iâ€™m single and have no dependents.

A co-worker of mine was set-up on a similar arrangement, but has a wife and kids back in Canada. Can he depart Canada?

Thanks for any help with this very complicated matter.

Pete

nelsona · Post by **nelsona** » Wed Mar 15, 2017 11:42 am

By "depart" you mean can you be considered a non-ressint of Canada with a departure date in 2016? Yes, you can, but your co-worker likely cannot.
Be careful however, that now your primary tax liability is in US for this work, meaning that all the Cdn tax you paid will be refunded to you and a lot owed to US, which you have not paid yet. you would still need to report the income in voth countriies, but it would be considered US source.