# Canadian taxes



## indy7 (May 3, 2012)

Hi everyone! I was reading this forum for quite some time. Especially the topics that have anything to do with Canadian taxes on money earned in UAE. 

From what I understood, the only way to not pay taxes is to claim non resident , meaning not having and family ties, property etc... On top of that good idea is NOT filling in and sending the non-residency status form to CRA or N73 (Correct me if I'm wrong with the number). 

However one of the questions that I want to figure out is the actual procedure. 

The CRA website states that in order to be considered as a non resident for tax purposes you need to stay in Canada for lat least 183 days a year.

So let's say I will decide to accept the job offer from UAE employer in September which is the 9 th month of the year so yes for the tax year of 2012 I will be considered as a resident. Which will lead to paying taxes on all of mine income and filling for taxes. 

Will I need to include the income earned in UAE for the year 2012 between the September end December?

And would I need to fill any tax papers for the year 2013? Since all the time that year I'm planing on working in UAE, so I definitively will be out of Canada for more then 183 days. So not being in the country and cutting all the ties with Canada will still require me to fill out tax form?

Thank you for you help!


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## w_man (Apr 16, 2010)

I haven't read up on the non-resident tax in a while but my understanding is that you should not have to claim any money earned outside of Canada as long as you are officially working as a non-resident as of Sept for a non-Canadian company. You would declare the date you are a non-resident on your 2012 tax forms eg: 1st of Sept. Maybe someone can correct me if I'm wrong.

On that note, to avoid serious tax related issues, I would suggest that you contact and hire an accountant who knows the non-resident tax laws well. It's worth the investment and they will be able to give you a much clear answer to any questions you have for your particular scenario than anyone on this forum.

I myself file taxes for both myself and my wife every year as I have an 'investment' property in Canada and need to provide the income earned as well as expenses.


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## Canuck_Sens (Nov 16, 2010)

indy7 said:


> Hi everyone! I was reading this forum for quite some time. Especially the topics that have anything to do with Canadian taxes on money earned in UAE.
> 
> From what I understood, the only way to not pay taxes is to claim non resident , meaning not having and family ties, property etc... On top of that good idea is NOT filling in and sending the non-residency status form to CRA or N73 (Correct me if I'm wrong with the number).


 I just went through this and it is not entirely true. Let me explain the specifics.

While you can file your income tax with the option of non residency (which you should if you are no longer a resident of Canada), you might have to file the NR73 in specific circumstances. I had filed two income taxes as a non resident and they were already fully assessed.

The first one I had income in Canada so I needed to declare.The second one I had PSPA adjustments (public pension plan) so I needed to file.

If you have any kind of investments or income earned in Canada you need to declare.

This year I also filed the NR73. The major reason is that if you hold RSSPS and want to cash it in a lower rate (i.e.25%) your bank or pension administrator will request the NR73 assessment of CRA.

If you have strong ties in Canada do not file the NR73 or you will be taxed. The CRA offers a guideline explaining the factors they take into account to determine your ties in Canada.

Bear in mind that even having a property and a card might not be considered as strong ties. Strong ties are ties that are forcing you to have a relationship with the country and use its services. For example:

a) Your kids, spouse or dependants are in Canada. There is no doubt you will have to pay income tax





indy7 said:


> The CRA website states that in order to be considered as a non resident for tax purposes you need to stay in Canada for lat least 183 days a year.
> 
> So let's say I will decide to accept the job offer from UAE employer in September which is the 9 th month of the year so yes for the tax year of 2012 I will be considered as a resident. Which will lead to paying taxes on all of mine income and filling for taxes.


 Nope. File as non resident. CRA will tax the income you made in Canada not in the UAE. Happened with me. I got my job in October. However, CRA will make adjustments in you return on the income you made in Canada. The adjustments are minor.



indy7 said:


> Will I need to include the income earned in UAE for the year 2012 between the September end December?


Yes you do as part of the worldwide income. I got a call from CRA in the UAE and the guy had asked me that question. I use those tax software packages but they are not fully customized for non residents scenario



indy7 said:


> And would I need to fill any tax papers for the year 2013? Since all the time that year I'm planing on working in UAE, so I definitively will be out of Canada for more then 183 days. So not being in the country and cutting all the ties with Canada will still require me to fill out tax form?


 If you do not have any investments or income in Canada. I would not, but any changes in pension for example or investments you need to. Remember renting a property is a source of income


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## Nitro_From_Windsor (Sep 10, 2010)

So you got two answers with people who have certain ties to Canada and how to go about doing taxes then. I, on the other hand, declared non-residency, got rid of all my things and came here. To begin with, I didn't have too many things in my name back home. I transferred my car to my dad's name, gave up my health card (for which I had to fill out a form and send it in as I am from Ontario) and told CRA that I am leaving. I called CRA back to make sure it was on their system that I am a non resident from Jan 2010 and they said it did. the only thing is that I had my drivers license and renewed it in December 2010 and not am not sure if that would be considered as ties back to Canada. Some say yes and some say no. I have talked to accounts back home and someone I know in the MTO and they both said it didn't matter but then again CRA can use any excuse to take aoney away from us.


I would give you the same advice W_Man gave you. Get yourself a good accountant/tax preparer who specializes in nonresident taxes (so no H&R block). Things like this, you want to make sure so that you don't get screwed over later.


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## indy7 (May 3, 2012)

Thank you guys for replying back! 

W_man I see. From what I understood there is a section in tax forms where I would need to state that I'm not resident. Am I right? I guess contacting accountant who knows the non- resident tax laws is a good idea. Can you recommend someone? I'm in Toronto. 

Canuck_Sens I don't have any investments. I'm a single student with no dependents, who lives with parents and finishes the college really soon lol. So I guess for me there is no point for NR73 form since I have no rrsp, tfic etc... Am I right? Does banking account and any outstanding debt on it like: line of credit, credit card debt considered to be a serious tie to Canada? And what about OSAP loan that I would need to pay off after college, would it be considered as a serious tie as well? Lastly, If I don't have any investments in Canada in 2013 it means no need to file the taxes. Right? 


Nitro_From_Windsor Thanks for reply. Yeah, I will definitely consult with accountant in regards of non resident tax. So you didn't send in the NR73 form? Have you ever visited Canada ever since? If so, did you have any problems with the customs?


Thank you guys so much for answering! It makes a picture more clear to me.


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## Canuck_Sens (Nov 16, 2010)

indy7 said:


> Thank you guys for replying back!
> 
> 
> Canuck_Sens I don't have any investments. I'm a single student with no dependents, who lives with parents and finishes the college really soon lol. So I guess for me there is no point for NR73 form since I have no rrsp, tfic etc... Am I right? Does banking account and any outstanding debt on it like: line of credit, credit card debt considered to be a serious tie to Canada? And what about OSAP loan that I would need to pay off after college, would it be considered as a serious tie as well? Lastly, If I don't have any investments in Canada in 2013 it means no need to file the taxes. Right? e


You are right about NR73, Cannot tell about OSAP. It is a student loan so I guess there is nothing there saying you cannot leave the country.

Remember people fine NR73 for RSSPs upon request of their pension providers. You should not file NR73 if you have the option to choose in the tax form

Just adding to Nitro comments. I actually got rid off everything. Brought my car, license was terminated, sold my property, Health Card is canceled if you do not confirm your address.


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## Nitro_From_Windsor (Sep 10, 2010)

indy7 said:


> Nitro_From_Windsor Thanks for reply. Yeah, I will definitely consult with accountant in regards of non resident tax. So you didn't send in the NR73 form? Have you ever visited Canada ever since? If so, did you have any problems with the customs?



Humm, I don't remember if I filled out the NR73 form before. I wonder if I can still send it in, two and a half years later. I did send in some form though I believe that was to cancel my health card. I do go back home two to three times a year for a month but I have never had any issues with customs. I even frequently cross the border between Windsor and Detroit and still havent had any issues. I always tell at both sides that I currently live in the UAE and they are fine with it. They just ask the questions of whose car I am driving, where I am staying at the moment and when I plan on going back to UAE. Otherwise, no issues.


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## w_man (Apr 16, 2010)

indy7 said:


> Thank you guys for replying back!
> 
> W_man I see. From what I understood there is a section in tax forms where I would need to state that I'm not resident. Am I right? I guess contacting accountant who knows the non- resident tax laws is a good idea. Can you recommend someone? I'm in Toronto.


I am from Calgary so I really don't but my company has a contract with PricewaterhouseCoopers and they have a division that manages international tax - they do my taxes every year. I wouldn't be surprised if PwC has an office in Toronto but they might be a bit on the expensive side ... try googling for a smaller outfit who has experience with expat taxes and you should be fine.

GL


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## Canuck_Sens (Nov 16, 2010)

Nitro_From_Windsor said:


> I wonder if I can still send it in, two and a half years later..


Yes you can, but I wonder why would you ? If you have RRSPs sitting there and provided your bank requires NR73 assessment you then yeah.

If you want the tax man tell you for good that you are a non resident from their perspective you can do.


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## Canuck_Sens (Nov 16, 2010)

Just an update for you folks.

I got a response back from CRA regarding the NR73 assessment. Long story short, CRA considers me a Non Resident.


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## w_man (Apr 16, 2010)

Congrats Canuck!! Enjoy your tax free living - officially!!


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