TK,KumarM etc,
I am thinking of returning to India in near future. Can you guide me how you mnaged it? how you filed for Canadian Non Residency ? What about RESP/RRSP etc/ Did you close all bank account, sold your house Etc.? What was the departure tax paid? How you are managing indian Tax return? Can i leave my university going daughter in Canada which will not consitute a signifacant ties to Canada? she will be 22 by 2 yaers or so.? What is the age of dependent child for Non Residence purpose?
Thanks
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Driller the thriller
Location: God's own country
Posted on: 10-06-12 03:31:12
welcome to the club (this is only for DD and not for anyone else as the Indian economy is going down the drain).
What I did was I closed all my ties to India. I had to fill a form to the CRA stating when I was leaving and fill in a questionare. There it asked me about my ties and when I would ever visit Canada again. I said that I will never visit a country like Canada ever again where the job oppertunites to immigrants is very rare and then the CRA wrote to me sayying that based on my answer, I could be considered as a non resident for Tax purposes.
I never paid any departure tax.
I left in the first quarter of 2011 and in 2012, I filed my last tax return where I was given pro rata tax concessions only.
Any person above 18 years of age is no longer attached to the parent in Canada for tax purposes.
I closed all my bank accounts, took out my RRSP/ Tax free accounts etc.. and took everything in cash.
I left a debit in my income tax account. I surrendered my healthcard and drivers license too.
However if you wish to expolit canada, you can do a 183 day residency every year (summer) and you can get full benefits offered by Canada incl. free healthcare, GST credits, CCTB, univerasl child benefit (for children under age 6) etc..
Hope this helps
Peace
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I am a Gents and not a Ladies.
Please check my posts dating back to around Dec 2010. Have written in detail. Not sure what is the departure tax. My accountant did not mention abt it. I am still a CRA tax filer, still has my RRSP in Canada. I need to start thinking abt withdrawing RRSP annually of $5k.
Thanks Kumar M, Yes, there is departure tax for your properties other then real property. CRA assume that you sold these properties on FMV on the date of departure. Good option is to sell everything before you move . What about RESP. If child becomes Non Resident , all Govt. grant is lost once he/she become Non Resident. Regarding RRSP, you will be taxed Non Resident witholding rate. ( ( which is 25% for Max. Amount). Only problem is that you can get refund of that withholding tax if your world income is less then 22K ( assuming your wife world income is Zero). Otherwise, no need, just forget about it & move on in life ( No Need to file Canadian Taxes). if you withdraw 5 K, rate is 10%. You can not trade once you become Non Resident. How you managed about your Canadian bank A/c. Do you still keep canadian account. They deposit withdrawl of RRSP to your canadian A/c. Also, if you are Non Resident, any Intrest earned is tax free in Canada. Hower, that is taxable in India. Similarly, difference of FMV of your RRSP date you become NR to actual date of withdrawl is taxable in India.
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Driller the thriller
I think we could still keep a house (rented through an agent on long term lease) here which would not interfere with the status of residency as such house will considered on par with other investments than calling it a home.
Quote:
Originally posted by desi_driller
TK,KumarM etc,
I am thinking of returning to India in near future. Can you guide me how you mnaged it? how you filed for Canadian Non Residency ? What about RESP/RRSP etc/ Did you close all bank account, sold your house Etc.? What was the departure tax paid? How you are managing indian Tax return? Can i leave my university going daughter in Canada which will not consitute a signifacant ties to Canada? she will be 22 by 2 yaers or so.? What is the age of dependent child for Non Residence purpose?
Thanks
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
When you're non-resident (having converted your home to an investment), why would you be worrying about paying taxes in Canada.
Moving is not always about me.. me.. me.. me.. me.. its also about the family and dependents, I know personally how it did hurt when I followed the same path of burning the ship (to sail back to USA) after I landed.
You're right about something, pretty much all my friends from US who returned to mother land a year back, are returning (they have secured US citizenship) back to USA despite the fat perks they're receiving, the unlucky ones who just burnt the bridge to come back are stuck in limbo and have been ranting with the same caliber as Mr. TK ji...
You're talking to some one who has done what you had been recommending and couldn't resist the wrath of the challenge when the family started going through agony.
Without drawing much graphs and much color coded numbers, tell me why would Indian economy will boom in the years to come. What it would have to offer the world and how it would competitive environment leveling its competitors..
Quote:
Originally posted by ashedfc
There are people who have gone to India (keeping their house here in Canada); such individuals will rarely succeed in India & have come back. Only because somewhere in the back of your mind, you have a Plan B (in Canada); so Plan A is not with a 100% effort..
And apart from that, the residency status of Canada, comes with a lot of pain (specially when you hit higher income in India, & the income tax liability here in Canada).
Also in leasing: what about the lease terms, bad tenant, repairs cost, finding a new tenant, etc.. there are help available (but everything comes at a cost)..
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
All,
Once you return to india. Do we still maintain our RNOR status for next 2 years. My case i may still maintain my status as NRI as I work in Oil field. I will be still going out for my rotational job.
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Driller the thriller
