confused resident or non resident. taxable or not?

[crunchytomato]

hello seniors and forum members,
i just wanna ask about my case if i need to pay tax or not.
im a new permanent resident here in canada.
i got my sin, opened a bank account and credit card, and got my alberta health card and drivers license.
these are my only ties here in canada.
i will just stay here for 30 days and ill be going back to UAE to resume for work.

my question is. will i be considered as a resident and be taxed for my world income?
hope u guys can enlighten regarding my case.

thank u

[steaky]

If you want to be a non-resident of Canada for tax purposes, before you go back to UAE, cancel your alberta health card, driver license and credit card.  Tell your bank that you will be non-resident.

[Jonboy]

PR + membership of a provincial health plan = you are tax-resident in Canada.  There are few rules about tax-residency but this is one.

When you apply for a provincial health care plan you make a declaration that you are resident in the province.  If you are resident in a province you are resident in Canada.  QED.

[agrisiva]

I suggest you read IT-221R3 (Consolidated) document and fill out NR74-04e form so that CRA can decide what you are!

Driver's License sounds scary to me. I know many came from US got the rest of stuff you listed and went back happily. They are not filing any tax returns to CRA.

[agrisiva]

taken exactly from the document it221r3-consolid-e.....

The residential ties of an individual that will almost
always be significant residential ties for the purpose of
determining residence status are the individual's
(a) dwelling place (or places),
(b) spouse or common-law partner, and
(c) dependants.

By the way, PR Card, Health Card, Credit card are just secondary ties.

[Jonboy]

taken exactly from the document it221r3-consolid-e.....

The residential ties of an individual that will almost
always be significant residential ties for the purpose of
determining residence status are the individual's
(a) dwelling place (or places),
(b) spouse or common-law partner, and
(c) dependants.

By the way, PR Card, Health Card, Credit card are just secondary ties.

But look at paragraph 16 of the document:

In addition, the CCRA considers that where an individual entering Canada applies for and obtains landed immigrant status and provincial health coverage, these ties will usually constitute significant residential ties with Canada. Thus, except in exceptional circumstances, where landed immigrant status and provincial health coverage have been acquired, the individual will be determined to be resident in Canada.

[agrisiva]

yes its a grey area, best thing one can do, is to file NR74-04e form so that CRA can decide the status for a person after considering all the circumstances.

[Tapak]

Isn't the tax tied to number of days stay in Canada e.g. 181. All I did was landing in Canada to complete the process and apply for SIN# and residency card. Do I still have to pay CDN taxes? I don't think so since I haven't established any significant ties in Canada.

[Jonboy]

Isn't the tax tied to number of days stay in Canada e.g. 181. All I did was landing in Canada to complete the process and apply for SIN# and residency card. Do I still have to pay CDN taxes? I don't think so since I haven't established any significant ties in Canada.

There are two types of tax-residents in Canada: factual and deemed.

Whether or not someone is a factual tax-resident is determined by their residential ties.  If you establish residential ties in a year you are factual resident from that point onwards.  The numebr of days is irrelevant except for apportioning certain tax credits.

If you do not becoma a factual tax-resident in a year, but nevertheless you spend more that 182 days in Canada, you may be deemed to be a tax-resident.