Tax obligations for 3-4 yrs out of country citizens

[Enquirer]

Hello Everyone,

I write here as i see great input/advice from people based on experience and knowledge about various immigration issues. Let me explain my case first.

I am currently a PR who already applied for CAN citizenship and expecting to recieve the passport by Q1/2011. I applied from my parents/dependant brother(less than 22) sponsorship back in 2007. I expect its approval soon in the coming 2-3 months from CPC-M based on the official processing timelines. Following that i would need to get a CAQ(Quebec) for them and consequently submit an immigration application for them in home country canadian embassy. The last step to finalize and obtain immigration visa for my parents will atleast take 3-4 further years. Since this is a long time and i did like to bring in my parents as soon as possible or be as close to them as possible, I was thinking of perhaps going back and work in my home country or somewhere near there until the final immigration step for my parents is finalized. This i planned to do once i have submitted the PR application in the Canadian embassy for the last step and recieved my Canadian citizenship. As soon as they recieve the immigration visa i would like to relocate back to Canada

Whether from sponsorship perspective the above situation/steps would be an issue or not, this i have enquired in another forum ? However assuming that there are no issues there, what would be the tax obligations if i move to another country while my parents sponsorship immigration application is in process ? Would there be a possibility to apply for non-residency ? I am willing to sever all kinds of ties to Canada for that in b/w duration of 3 -4 yrs.

Any advice here or a potential way forward would be really appreciated. In case you suggest i contact some lawyer or so then a potential contact would be nice.


regards

Enquirer

[Jonboy]

Residency for tax purposes is a question of facts.  It is not something you can apply for.  (But see below)

In the circumstances you mention, provided you really do sever residential ties to Canada when you return to your home country, I don't see why you could not be a non-resident for tax purposes for these years.  I don't know if you have any capital assets but if so you should talk to an accountant because there may be taxable capital gains when you go non-resident.  Failing to declare these and pay the tax due is a common reason for the CRA to deny someone non-resident tax status.

Although you cannot apply for non-resident tax status you can apply to the CRA for a ruling on whether or not they consider you non-resident.   They will not do this on a hypothetical basis - you can't ask them "if I do this will I be a tax non-resident?"  You can only ask them "these are the facts at the moment, do you think I am tax resident or not?"

In reality, if there is not a great deal of tax involved, you file all your returns on time, and pay all your taxes as they become due, you fly under the CRA's radar.  They accept the dates for leaving and returning to Canada as given on your T1 tax returns

[Leon]

A citizen can sponsor a spouse or dependent children for PR while living outside Canada as long as they show plans to move to Canada when they get their PR.  Sponsoring parents however means you have to be living in Canada.  If you leave Canada for the long term, immigration may cancel your parents processing.

[Enquirer]

Thanks Jonboy and Leon for your input.

regards,

Ghufran

[Milanice]

Residency for tax purposes is a question of facts.  It is not something you can apply for.  (But see below)

In the circumstances you mention, provided you really do sever residential ties to Canada when you return to your home country, I don't see why you could not be a non-resident for tax purposes for these years.  I don't know if you have any capital assets but if so you should talk to an accountant because there may be taxable capital gains when you go non-resident.  Failing to declare these and pay the tax due is a common reason for the CRA to deny someone non-resident tax status.

Although you cannot apply for non-resident tax status you can apply to the CRA for a ruling on whether or not they consider you non-resident.   They will not do this on a hypothetical basis - you can't ask them "if I do this will I be a tax non-resident?"  You can only ask them "these are the facts at the moment, do you think I am tax resident or not?"

In reality, if there is not a great deal of tax involved, you file all your returns on time, and pay all your taxes as they become due, you fly under the CRA's radar.  They accept the dates for leaving and returning to Canada as given on your T1 tax returns

This information is useful,thanks!