Dear Chandersh Ji. / Senior Desis...
I followed a lot of your advice to new PR on tax issues. I also live in middle east and planning to come for Landing in Apr05.
I read Central Revenue Agency website and it was clear that being non resident , one may not pay taxes on world income. Basically if i earn income outside Canada , and if i am a non-resident for tax purposes, then i will not be taxed. It also says that to qualify for non resident one should not have Driving License, Rented apartment, no family, OHIP i.e. basically no association commercially, socially or otherwise etc
It was clear that there is no mention of SIN, which means that one can apply for SIN. So basically when i come to toronto, just finish my PR Card requirements, Get SIN Card . open bank account and come back. Nothing more to be done.
Now Question is ?
1. How does one get labelled non resident for tax purpose. Is it that at the end of the financial year i file my returns in any case and leave it up to CRA to decide or while i am there - i need to apprach and fill forms to aquire that status ?
2. I understand that out of 5 years, 3 years one can stay out of Canada in one shot. Now can i remain non-resident fortax purposes for these three years ? or is it only one year from the date we landed till next 24 months/financial tax filling deadline APR..
Thanks again
Wud appreciate some1s specific advise on this . As per my understanding .
You can avoid opening a Bank a/c 2 save ur residense intentions in Canada. Only PR & SIN r enough .
1. Financial year 4 tax purposes is from 1st Jan to 31st Dec. In case u land in Apr05 and intend 2 stay on u become income tax assesse for the Assesment year 2006-07.
2. N case u intend 2 return back upon entry and re enter after 03 years ie April 08 then u wud b tax liable 4 the year 08-09.
Regards ,
Manasvi
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