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.

 

[ranjan05]

All senior/Junior Members, Please advice for my situation.
I am in Canada since last 10 years on valid PR . Never aquired Canadian Citizenship & still having Indian Passport. I work on rotational job in oil field overseas. I pay tax as resident canadian on my word income. My wife & 2 daughters are all canadian citizen. My both daughters are student in canadian universities more then 18 years of age.I am planning to go back to India with my wife by selling my house , closing all accounts, pay deemed dispotion taxes etc. I have following questions for declaring Non Residency in Canada.
1- Supporting my Daughter ( more then 18 years ) of age is considered a significant ties on canada. CRA says dependent but defination is not clear if they are over 18 years of age. both of them will be moving to different residence.
2- I am PR Card holder with my wife as Canadian citizens. We do not want to return to Canada . If needed our daughters can come & visit us in India. I can renew PR card based on my days spend with wife. But even I lose PR status I do not mind. What is CRA stands for maintaining PR Card. I know Indo-Canada Tax traety I will pass the tie braker test as I am Indian citizen. Shod I have to voluntry give PR staus . I am meeting Residency requirement. They say, you can surrende it volunraily only in exceptional circumstances. ( GETTING CANADIAN CITIZENSHIP IS NOT POSSIBLE DUE TO NUMBER OF DAYS SPEND EVERY 4 YEAR THEREFORE I RENEW MY PR CARD FOR WHICH I ACHIEVE RESIDENCY DAYS WITHOUT ANY PROBLEM)
3- Once I will return to Canada , I will Continue my oil field rotational job ( which is what i am doing now) . So basically it is 4 weeks ON / 4 weeks OFF. Now, I am rotating from Canada & after going back to India, I will rotate from India. So, basicaal I will be still NRI as per Indian Tax law.( world income non taxable- Indian Income Taxable). I will try to find some indian job also bit i am not sure about job condions. Even I get a India based job, you remain RNOR staus for 2 years ( No tax on global Income) .

Please help advice me about situation so that I can think about this plan for Canadian Non Residency furthe.

 

[ranjan05]

any reply /suggestion/advice

 

[steaky]

any reply /suggestion/advice

I don't understand...

First you said you are in Canada since 10 years on valid PR. And then you said getting Canadian citizenship is not possible... If you had been living in Canada for at least 1095 days in a 4 year period, you can apply for citizenship.

Are you asking a citizenship question or Tax related question?