http://www.financialpost.com/analysis/columnists/story.html?id=65763947-627f-45f6-8afe-4b231934c451

does this really happen?

see the story below from the National Post


More on the expat fraud file


This information is from a Canadian living in Latin America about health care fraud perpetuated by expatriate Canadians. There are millions of Canadian expats around the world -- an estimated 4.5 million by my count.

The rules are that Canadian tax residency allows you to retain your health-care benefits, but you must return to Canada every six months. This is the so-called "snowbird" rule.

Expat fraud is when someone gets it both ways. They leave without declaring they are offshore to avoid the 25% departure tax and to keep their health care. Having not reported their departure, they also fail to fulfill the legal requirement to file and pay income taxes. They are tax evaders and health-care defrauders.

Here is her story: "I read your column and just couldn't resist commenting on the abuse and fraud on the medical health-care system I see and hear about every day.

"My husband and I moved to [Latin America] to retire 3.5 years ago. We buy comprehensive insurance, to the tune of $3,200 each, and are glad to do so. However, many of the Canadians who have moved here, and spend at least 10 months a year outside of Canada, are delighted to tell us they have full access to the Canadian medical system. (Obviously, they think we are dumb to have insurance.)

"One such couple just flew back to Canada because the man had heart palpitations. He is currently undergoing bypass surgery and will soon have a pacemaker and defibrillator installed. They have lived in Europe for the last three years and this year spent all their time, other than Christmas, here. This particular couple have taken all of their investments offshore and the only income they pay tax on is the Old Age pensions. They tell everyone this.

"Another young lady has moved here, married a local doctor, but still uses the medical system in Canada for her annual checkups when she goes home in the summer to visit her mother. She plans to get pregnant soon and is planning on having the baby in Canada.

"The health-care system here is excellent if you pay for the private hospitals, but she assures us that it is free in Canada and as long as she has an address there, they think she is still somewhere in Canada.

"You would think that the exit stamp in her passport and entry stamp into Panama with no further entries until she returns to Canada might be a tipoff, but apparently not."

The passport issue is easily gotten around, I'm told by another Canadian who reported expat fraud to me.

"Canadians living abroad usually have two or more passports, so they travel in and out of Canada on their foreign passport but keep their Canadian passport free of stamps that can detect their movements."

Canadian governments are suckers, spending hundreds of billions of dollars handing out entitlements based on the honour system. Abuse is widespread because nothing is being done by governments to screen, monitor and avert fraud.

The simplest way to stop expat fraud is to require every beneficiary to physically present themselves, with documents, every six months and sign affidavits they are meeting the criteria.

Yes. It is mostly true. The national post is a very credible newspaper. You can trust almost anything on it.
Canada has been one of the most lax. countries in the world. They are showing billion and billions of dollars each year budget surplus and spend biilions on health care. But people who mostly use the healthcare to the last penny are old age people, people on life support and people who have to be taken care of by the govt. due to physical conditions (like destitute people, people with assisted living etc...).
Already the ontario govt. spends 56 cents for each tax dollar on healthcare.
With the recession coming and as more and more immigrants get older, the heath care of Canada is becoming like the social security allowance of USA. Both are not certain in the future.
Hope this helps.

Peace out

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I am a Gents and not a Ladies.

This could be partly true. It mainly applies for retirees and freelancers but the expats who work for Canadian companies won’t do that, especially the tax evading part. The companies are in legal agreements with host governments and they happily pay employee taxes for Canada as well as for the host govt. I mean they abide Canadian as well as host govt. rules; they’ll never do any petty thing to jeopardize their (mining) contracts. My husband works for a mining company in Latin America and we have 100 Canadian expats working there, none of us fall in the above category.

I am also surprised, to read some of these examples. I also thought the same thing that we'll get US income but we'll keep Canadian Health Card as lot of people do... but to my surprise.. it's not worth it.

I am not sure who got benefit out of it but we live at 2hr distance from Canada border... we do have health insurance in USA but we never thought of giving up our Canadian Health coz we were not sure how long the job-contract last and it would be a headache to complete formalities if we decide to come back to Canada.

Also Free Medical concept attracted us too until we realized that if we do not surrender our health card and driver's licence, we will be considered RESIDENT of CANADA and we have to pay tax on US income. So to become NON-RESIDENT we have to cut our ties and this includes getting licence and health card suspended and we did. We paid heavy taxes just because we did not know about this fact.

And moreover if myself/ or anyone else get sick in the family we have to visit local doctor.

So I do not think that Fraud thing applies to everyone who live outside Canada. and if someone thinks they are smart.... Canadian Govt. is smarter than them. (I was one of them, so no offence)