Good day everyone,
Me and my family are planning to move back to India early next year as I have a new job which is in my hometown Bombay, I had a few questions regarding the non resident for tax purpose issue. I have outlined my situation below and would request humbly fellow desis to please give me your advice on this matter.
--Family of 3, all Canadian citizens & have OCI cards
--Will close all bank accounts before leaving
--will cancel all credit cards before leaving
--will cancel health cards before leaving
--sell vehicle and cancel car insurance before leaving
--cancel all accounts such as cable etc
--do not own any property in Canada
Am I still liable to pay any taxes or file returns on a yearly basis if I have no plans of coming back for a long time or maybe never???????????
Will really appreciate guidance in this matter.
God bless all.
If you do not live in Canada and have no ties (financial/family, no income from any cdn sources), you are a NR of Canada for tax purpose.
Make sure you write your departure date on your (last) tax return.
I would also recommend visiting the CRA website to make yourself well-informed.
Quote:
Originally posted by bombayboy74
Good day everyone,
Me and my family are planning to move back to India early next year as I have a new job which is in my hometown Bombay, I had a few questions regarding the non resident for tax purpose issue. I have outlined my situation below and would request humbly fellow desis to please give me your advice on this matter.
--Family of 3, all Canadian citizens & have OCI cards
--Will close all bank accounts before leaving
--will cancel all credit cards before leaving
--will cancel health cards before leaving
--sell vehicle and cancel car insurance before leaving
--cancel all accounts such as cable etc
--do not own any property in Canada
Am I still liable to pay any taxes or file returns on a yearly basis if I have no plans of coming back for a long time or maybe never???????????
Will really appreciate guidance in this matter.
God bless all.
Do not forget the RRSP s & RESP s .
If I am not mistaken , there s a provision on which you can inquire this from CRA pro actively and they can advise you accordingly as well .
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Fido.
There is no rule under the Income Tax Act (Act) requiring an individual to wind up their RRSP accounts in order to qualify as a non-resident of Canada.
You should notify your financial institutions of your change in residency status. Certain financial institutions have administrative rules restricting the individual's ability to invest in equity investments (including mutual funds) due to regulatory concerns in many foreign jurisdictions.
Check this:
http://www.ica.bc.ca/kb.php3?pageid=4958&mobileSession=a7bf75bb57537bb0ab17f79723cb0db3
Quote:
Originally posted by Fido
Do not forget the RRSP s & RESP s .
If I am not mistaken , there s a provision on which you can inquire this from CRA pro actively and they can advise you accordingly as well .
Location: God's own country
Posted on: 08-02-13 06:53:05
Cdn Dude,
Though the law may not be explicit, the Tax law says that any thing that can signify your ties to Canada can consider you a resident.
I am pretty sure that RRSP is a significant tie to your home country as you are expecting your savings to grow tax free in Canada.
To be on the safe side, I would liquidate RRSP (if any).
To the OP:
Make sure that your Canadian Passport/Citizenship / debt is the only thing that can tie you to Canada. Get rid of the rest.
Examples : Driving license, Health cards, CC, Bank accounts, owner ship of property,storage etc..
Peace
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I am a Gents and not a Ladies.
Location: Western Hemisphere
Posted on: 08-02-13 09:54:33
RSP need not be liquidated to create tax non-residency. I'd agree with Cdn Dude and I have confirmed with financial advisors who have had clients that now live in the US as tax non-residents. They have also verified this with their tax group. However, the non-residency may create other tax implications in the new country of residence at the time of RSP withdrawal. That implication could be offset through foreign tax credits (tax treaty)
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Dimple2001
Can Anubody become Canadian Non Resident for Tax Purpose. Person is Indian Citizen with Permanent Residency , Wife is Canadian Citizen. Does he has to surrender his Canadian Residency/ I understand for Canadian Passport no need to surrender his passport. Any pointer for PR ??
