# Calling on Canadians for income tax rules



## Canuck_Sens (Nov 16, 2010)

Hi Canucks,

I would like to have more info about income tax that we have to file before April 1st 2011. I would really appreciate if you folks can shed some light given my context.

I would like to ask those who do not have experience with Canadian Tax system to refrain yourselves from posting comments. I don't want to sound rude, but tax legislation is different everywhere. I am relying on Canadians or people who have filed income tax under similar conditions.

My case.

I have lived more than 183 days in Canada for 2010 purposes and based on the CRA rules I am falling under "deemed residents of Canada". I had Canadian Income until October 2010 which is easily traceable by CRA.

The reason of being entitled deemed resident is due to the following:

a) The fact that the tax treaty between UAE and Canada does not have a provision by which Canadians can be considered residents in UAE. This was my understanding reading the rules in CRA website.

Can anyone tell me if my understanding of the tax treaty is correct ?

b) I fall under the 183 days rules too and Residential ties

I extracted this from CRA

_" You are a deemed resident of Canada for tax purposes if
-you stay in Canada for 183 days or more (the 183-day rule) in the tax year; 
-do not have residential ties with Canada; and 
-are not considered a resident of another country under the terms of a tax treaty between Canada and that country "_

This leads me to believe that I am indeed a deemed resident of Canada for Tax purpsoes.

What's the bottom line ? am I going to be taxed for my global income ?

do you folks use UFILE or any online tool? 
do you know any online tool that would handle my case ? 
Please let me know


Thanks,


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## cdnskier (Feb 9, 2010)

*Canadian Tax; Non residency status*



Canuck_Sens said:


> Hi Canucks,
> 
> I would like to have more info about income tax that we have to file before April 1st 2011. I would really appreciate if you folks can shed some light given my context.
> 
> ...



Hi THere, I consulted a very experiencede tax lawyer from the firm Gowlings at the time I left. I looked at it differently. How can I ve considered a no-resident of Canada and thus be exmpt from paying tax on my globa;l income. The answer is no straightforward,as expected. The proof of your status as non resident comes down to whether you have a credible story supporting the following:
" That you have no residency ties to Canada whatsoever. Ties to Canada would be you health insurance, a driver's license, a resicne you own (event rent to family or keep vacant). You should have been outside the country for more than two years and demosntrate that with have no intention of returning in the short term. If all of these have been fullfilled and it happens that you return then you have a credible story to CCRA and you can sustain that you were a non- resident while you were out. The longer you are away the more ceredible your story is and likely it will be accepted.

My understanding of a tax treaty, is that the countries that do, would then share the tax having established you as a resodent of that country. For example oif you are deemed resident iof the US, and the US does have a tax treaty with Canada, then your taxes to Canada would be reduced by the amount you paid in US income tax.

It is frustrating that there is no hard and fast rule one can rely on.

Cheers, A


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