Does a Canadian Citizen have to pay taxes in Canada if he's working outside Canada?

If a Candian Citizen gets a job in US or India, is he obligated to pay taxes to Canadian govt. apart from paying taxes in the countries where he is working?

What about Dubai, where there are no Taxes and what are his obligations and responsibilities towards the Canadian Government??

Please advise!!

hello Saregama,

You have raised a very good question.. friends on the forum.. please share your knowledge.. there are many who wants to know about this in detail..

By the way saregama.. are you from UAE.. I am, and in the process of moving soon.. if so do send me mail on maplesdreams@gmail.com.. shal send you cotact number else can meet to discuss if ok

regards
maple

YES,Yes,and yes.

Today, in Canada, the poverty level of income for a Couple is $32,000.
I know, I know, You want to know Where did I get this figure?
'Simple rithmetic'. They teach you the four 'R's here. Reading, Righting, Rithmetic, and Romance. The rest just falls in place. What place? I don't know! I am still Romancing. Wait till I wake up one fine morning and I find that i am 'Deep-in-the-hole' and cant get out unless some one bails me out. When I arrived, they told me that 'Two can live as cheap as ONE'. But them days are gone for ever. Not for ever, but close to it. Those were the days, when we had no free medicals, No legal Aids, and the church looked out for the sabbath and the passing of the hats. Only the farmers paid no taxes, and we had a nice saying that went "Whether you are coming or going, if you win or loose, and born or dead, the Doctor, the Lawyer and the Clergy, made money both ways". Currently they acquired a partner that keeps tab on them. HOW? they ask for taxes on top of their services. Thats how!
NOW, we have free Medicals, tons of Legal Aids, CPP, and OAS and EI, also the choice of religion too. And there is always a hitch that goes with it. You pay taxes and most of the times it is through your nose.
FED RATES:
http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html
PROVINCIAL:
http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html#provincial
PST & GST (HST)
http://www.aacb.com/tools/taxtable.asp

First you pay thed Feds and the Provinces, that takes fifty cents out of the dollar and then for all the luxuries with GST-PST-orHST, (now it is fourteen out of the balance), about 7%. So, you end up with 43 cents in the dollar for your use. That is not bad. So watch out for anything that ends in a T. They get you Left and Right. (Except gas/petrol)

Yes, now to the 32 Grand, (50 Weeksx2Adultsx40Hrx$8) Two weeks off with pay, that is the bonus.
Hey! ask a few of the offshore advisors there, ( they don't have them here anymore, they are 'DO-DO birds of Madagaskar) they all will tell you,
"CANADA is the BEST tax HAVEN" in the whole world.
Now take a flying leap and join the crowd.
"Just Molly and Me and ......... happy.......in... My Blue Heaven."

Freddie.

Thanks for replying, We have already uprooted ourselves from our place of origin and now we are like migratory birds. Any greener pasture is good, but we must know the pros & cons b4 hand. I am only contemplating on this decision of moving, but b4 action, planning is essential which is why i posted this question.

Please browse in charcha and you will find relevant information on this topic.

As a jist , if you have adhered to Tax Laws in a different country and if that country has a mutual Agreement with Canada on this , you may show your world income but claim exemption on income out of Canada.

People who are just landing and return after a week or so should avoid opening bank accounts in Canada which is a proof of your 'ties with Canada' and makes it obligarory to file a tax return on your world income.

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Fido.

Hi saregama,

Here is a quarterly publication, has been free for the past seven years, that will keep you abreast of the Canadain off shore scene.
http://www.canadiansresidentabroad.com/

Go through the next two Government of Canada websites, that will tell you how they got 'you' by the 'room'.
http://www.cra-arc.gc.ca/E/pub/tg/t4131/README.html
http://www.voyage.gc.ca/main/pubs/retirement_abroad-en.asp

The next is a book on this subject by Garry Duncan, and is avaiable in the Toronto Libraries for reading. Get a 'loan' of this and read. Is available from BDO Dunwoody in Richmond hill. (Not Finch)
Canadians Resident Abroad, 4th Edition
Garry Duncan, B.Comm., F.C.A., CFP, Elizabeth Peck, B.A., M. Museol.
http://www.carswell.com/description.asp?DocID=3424&pgid=description

It is nice to know that there is another side to every coin.
Opposite side of the coin: I could not read it. Too long and hard to read.
http://www.latchkey.net/columns/archives/000110.html

Now you know, why I asked "Does chicken have lips". Yes, I am going to ask,
a second one. "can you make them whistle"?

There are countries that are not signatories to the Avoidance of Dual Taxation treaty. One of them is DUBAI. Also there are other tax havens, such as the ISLANDS that will welcome you with open arms, just for your money. There were advisors here in Canada, who helped people move out so smoothly, the Government closed them all up, by banning them. Now, they go on board ships, and also abroad and hold their seminars out side the country and tell you how good the Canadian Government is. By the by there are two goods in Canada. One is Very Very Good, and the other is....n.... You can find out from these articles and form your own opinion. Read thoroughly, only then, will you understand.


http://laws.justice.gc.ca/en/1997/27/8250.html#rid-8250

http://www.fin.gc.ca/treaties/treatystatus_e.html

---------------------------------------------------------------------------------------
'QUOTE'
"Tax Conventions Implementation Act, 2002 "
The House resumed consideration of the motion that Bill S-2, an act to implement an agreement, conventions and protocols concluded between Canada and Kuwait, Mongolia, the United Arab Emirates, Moldova, Norway, Belgium and Italy for the avoidance of double taxation and the prevention of fiscal evasion and to amend the enacted text of three tax treaties, be read the second time and referred to a committee.

__________________________________________________________

Tax Conventions Implementation Act, 2002
The House resumed consideration of the motion that Bill S-2, an act to implement an agreement, conventions and protocols concluded between Canada and Kuwait, Mongolia, the United Arab Emirates, Moldova, Norway, Belgium and Italy for the avoidance of double taxation and the prevention of fiscal evasion and to amend the enacted text of three tax treaties, be read the second time and referred to a committee.

Mr. Pat Martin (Winnipeg Centre, NDP): Madam Speaker, I am pleased to share our views, on behalf of the NDP caucus, on Bill S-2.

The member from the Alliance, who spoke on the bill, has already mentioned that the bill originated in the Senate. The NDP is critical of that very fact. We believe that bills should originate in the elected chamber of the House of Commons, not in the unelected Senate. We will make that point every time we see a bill coming forward that is marked S rather than C.

The NDP will have no trouble voting for Bill S-2. We recognize there are seven tax treaties that are designed and speak to the issue of fairness, and try to minimize the duplication of taxation for Canadian citizens working abroad. The reciprocity would exist for others who are signatory to that treaty to have the same fairness and rights were they working in this country.

We recognize that it is necessary for cooperation between this country and our trading partners. We believe that tax treaties enhance the trading relationships that we have with other countries around the world. We recognize the benefit that treaties like this have in giving opportunities to share information between the two countries, for example, administrative information that can aid, assist and benefit the relationship that exists between these very countries. We recognize the need for us to deal with the issue of double taxation.

We would hope that our government would take steps to minimize the risk of such a thing happening to Canadian people working abroad. We would point out though that there are a number of ways that the treaty could have been crafted to deal with the issue of double taxation. We do not know who has the exclusive authority, and perhaps this will become clear as the bill moves further along, regarding double taxation, for example, exclusive to the source country, or exclusive to the country of residence of a person being taxed or some combination of the two. One of the points that has come to our attention is that there is a lack of clarity on that issue as it tries to deal with the issue of double taxation.

The other point of note, as the parliamentary secretary who introduced the bill pointed out, the withholding tax rates are of some concern to those involved. We are satisfied that Bill S-2 would address the issue that interest, dividends and royalties that are subject to withholding taxes would be taxed at a rate which used to be 25% and would now be reduced to about 5% in some countries to a high of 15%. This is a general reduction of taxes for those who are having funds withheld due to interests, dividends or royalties. That may have an effect on Canadian artists and musicians who have royalty cheques coming from other places. The tax rate would be harmonized now at a rate lower than they are being taxed currently. We would see that as mildly beneficial to some Canadians and therefore we would be pleased to support it.

I would like to thank the finance critic for the Bloc Quebecois for expanding the debate somewhat, because I think it is an opportunity for us to speak to the larger picture of the treatment of taxation when we are dealing with international trading relationships. He spent much of his speech pointing out that we must be careful that we are not enhancing tax havens, in other words disadvantaging our own country by unduly promoting tax situations in other countries which may in fact be detrimental to our own revenue streams here in this country.

He used the example of Barbados as a popular Canadian tax haven and he pointed out that the Government of Canada's own website was offering offshore investment opportunities as an idea for minimizing a person's taxes. It strikes me as strange that the Government of Canada would do anything to enhance and promote people's tax avoidance by putting money offshore.
"UNQUOTE"


Good Reading.

Freddie.

"There are countries that are not signatories to the Avoidance of Dual Taxation treaty. One of them is DUBAI." ... Freddie

Dear Freddie .... Dubai is not a country & so you would not find it in the list of countries that are signatories of the convention. However United Arab Emirates(a country where Dubai is located) has been a signatory of this since 2004.

For more info

http://www.fin.gc.ca/treaties/notices/UAEnot2_e.html