# tax for permanent residents



## newpair (Jun 1, 2009)

Hi, I intend to land in Canada next month (Vancouver) and then return to the UK for a year before returning to reside full time in 2010. I will have no property or ties in Canada until I return, will I be liaible for any taxes or have to fill in a return?

Many thanks.


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## RonVancouver (Mar 27, 2009)

*Taxes taxes*



newpair said:


> Hi, I intend to land in Canada next month (Vancouver) and then return to the UK for a year before returning to reside full time in 2010. I will have no property or ties in Canada until I return, will I be liaible for any taxes or have to fill in a return?
> 
> Many thanks.


Hi
If you have permanent resident status you will need to file a Canada Revenue return for federal and provincial taxes. With permanent resident status, you are responsible to report world - wide income. It's your status, not your domicile. Of course you also recognize that each day you are not in Canada counts against you for the 720 days you must be in Canada for every five years and extends eligibility period for citizenship.
There is a foreign tax credit that helps to make this fair. Canada has this and I believe the UK does as well. 
All of this depends on if you indeed have income in UK. 
Some are tempted to evade the reporting. Believe me ... this is not wise. If you get caught, it will not look good being a new resident. I landed here in Vancouver in 2005 and I am amazed that Canada Revenue is right on top of everyone. You even get a printed bill, a printed receipt. It's not like US where there are so many returns you never hear from them and it is easy to evade.
UK., US all have tax treaties.
We find the taxes here to be outrageous, but do not mind as we love this place.

Congratulations on your landing,.


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## Newbie_Can_USA (Jan 17, 2009)

Ron,

Hi. I kind of did the same thing. I landed on July 4, 2008 and returned permanently in May 2009. Woudl you be kind enough to point to the equivalent of the IRS site in Canada so I can research and see what forms I need to fill in and pay if there is a tax liability against me.

Good insight..thanks.


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## Auld Yin (Mar 10, 2009)

newpair said:


> Hi, I intend to land in Canada next month (Vancouver) and then return to the UK for a year before returning to reside full time in 2010. I will have no property or ties in Canada until I return, will I be liaible for any taxes or have to fill in a return?
> 
> Many thanks.


I do not necessarily agree with RonVancouver. As I read:- 
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html 
residency is determined by a number of factors. If you return to the UK after landing and leave no trace of yourself in Canada then you do not require to file tax returns until such time as you do have assets, ties etc in the country.


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## Newbie_Can_USA (Jan 17, 2009)

Thanks Auld Yin for posting.


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## mcd1203 (Nov 25, 2008)

just remember you can be considered a resident if you lived in Canada longer than 183 days.


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## RonVancouver (Mar 27, 2009)

*Tax in Canada*

Hi 


Residency is - holding of a Permanent RESIDENT CARD. Either you are legally a resident of Canada or you are not. Physical presence and residency are two different animals and the Canada Revenue and CIC look at that face similarly.

The purpose of the card is to document one's permanent residency in Canada. While the 183 day rule is accurate in terms of CIC regulations, Canada Revenue has a different agenda. Indeed one needs to document 720 days of "physical presence" in Canada in order to remain qualified for the renewal of the PR card.

Governments like UK and U.S. have tax treaties with Canada and information is shared among them as well as the Canada Customs and Immigration. For example, I have not been a resident of the U.S.,( physical presence) since 2005, but I have had to file tax reports with the U.S. on U.S. income and Canadian income since then. 

Revenue agencies have forms which foreign residents file (US is 2455) in order to receive generous tax benefits.

I guess one needs to check with a CGA or other certified accountant for certain.

If you are new to Canada, you do not need trouble. I can tell you that Revenue Canada can be relentless in collecting what is due. Auld Yin says if you stay in UK there is "no trace". What would one call your immigration paperwork, your contact residency in UK and your card as well as the fact it is scanned when you leave Canada? I call that trace.

You requested a web site for the revenue agency. Here it is.

Canada Revenue Agency

Income earned abroad is taxable

Be wise and check with accountants in Vancouver and in UK.

Good luck ron


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## jamescruz (May 9, 2009)

I think you need to pay taxes but of course you should consult the concerned authorities to get some reliable information about it.


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## Auld Yin (Mar 10, 2009)

Auld Yin says if you stay in UK there is "no trace". 

I did NOT say that. I said if you return to the UK and leave no trace of yourself in Canada.


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## RonVancouver (Mar 27, 2009)

Auld Yin said:


> Auld Yin says if you stay in UK there is "no trace".
> 
> I did NOT say that. I said if you return to the UK and leave no trace of yourself in Canada.


I understand that.....but what I am noting is how can one leave no trace here when he has a complete immigration file, forward address and PR card. I would say that is quite evident of "trace". 

However, I wish all the very best/.

ron


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