PR living outside Canada with Family in Canada

[NextCanadian]

Hello everyone; hope you all are well.

My family and I got our Canadian Permanent Residency (PR) some time ago; however, I have not been able to find a suitable job for me in Canada to support my family there.

As the time to meet the PR obligation is near, my wife and sons will travel to Canada to initiate their lives over there and meet the 2 out of 5 years requirement to get their PR renewed. So, my questions are:

1. Can they get their PR renewed, even though I whom was the main applicant during the PR process will be out of Canada during most of the initial 5y PR period?

2. Do the same apply if only our sons establish in Canada as students in a boarding school ? Can they in the future get their PR renewed and then upon completion of all requirements get their Canadian citizenship?

3. I know the fact that as my spouse and sons will be living in Canada I might be deemed as having ties with Canada, so I can be deemed as Canadian resident for tax purposes.

However, as I need to economically support my family, I have to forget about my Canadian permanent residency as I will be living, working and having the intention of remaining in my current country in order to support my family. My family will keep their intention of being Permanent residents and live in Canada.

So, under this consideration will I be a Non Resident independently of my family living there ?

4. I have seen some articles referring to similar cases as the "bread earner" living outside with no tax obligation even though his family is in Canada. Anyone can comment on this or guide me to where I can found some information ?

Appreciate ant comment or guide you can give me ....

Thanks and Regards

 

[Rob_TO]

1. Can they get their PR renewed, even though I whom was the main applicant during the PR process will be out of Canada during most of the initial 5y PR period?

2. Do the same apply if only our sons establish in Canada as students in a boarding school ? Can they in the future get their PR renewed and then upon completion of all requirements get their Canadian citizenship?

PR obligations are assessed on an individual basis, not as a family. So as long as your wife and kids maintain their RO, they can renew their PR cards and later apply for citizenship as they qualify, irrelevant of your situation.

3. I know the fact that as my spouse and sons will be living in Canada I might be deemed as having ties with Canada, so I can be deemed as Canadian resident for tax purposes.

However, as I need to economically support my family, I have to forget about my Canadian permanent residency as I will be living, working and having the intention of remaining in my current country in order to support my family. My family will keep their intention of being Permanent residents and live in Canada.

So, under this consideration will I be a Non Resident independently of my family living there ?

This is up to the CRA. Having all your family in Canada and an intent to return to Canada at some point in the future, may make you a resident for tax purposes even if you will be working outside Canada for a long time.

Talk to an accountant experienced with tax residency issues. Each case is different so what some other person did or didn't do, CRA may not see the same in your case.

 

[torontosm]

3. I know the fact that as my spouse and sons will be living in Canada I might be deemed as having ties with Canada, so I can be deemed as Canadian resident for tax purposes.

However, as I need to economically support my family, I have to forget about my Canadian permanent residency as I will be living, working and having the intention of remaining in my current country in order to support my family. My family will keep their intention of being Permanent residents and live in Canada.

So, under this consideration will I be a Non Resident independently of my family living there ?

Read this:

http://www.cbc.ca/news/business/taxes/6-must-know-tax-facts-for-canadians-earning-abroad-1.1167892

You are still a tax resident if your family lives in Canada, and you have a house here. You will be taxed on your global income.

 

[NextCanadian]

Thanks; much appreciated .... Your comments are really helpful.

Just to clarify: I won't have a house in Canada; my wife and sons will establish there and continue there as PR. I -because of my job conditions- will remain out of Canada with (unfortunately) no intention to continue with my Permanent Residency plan.

As you said, the PR is assessed on an individual case, and that's why I think I will be non-resident as "I" will have no ties with Canada.

Should I formally (e.g. letter) update CIC on my new conditions to relinquish of my PR or just wait until completing the 5 year period and then not getting my PR renewed ?

Thanks again

 

[steaky]

Don't get relinquish your PR now. Wait until one day your wife became Canadian citizen and live with you in the home country for at least two years, this might make you eligible for apply PRTD to travel back to Canada.

 

[torontosm]

Thanks; much appreciated .... Your comments are really helpful.

Just to clarify: I won't have a house in Canada; my wife and sons will establish there and continue there as PR. I -because of my job conditions- will remain out of Canada with (unfortunately) no intention to continue with my Permanent Residency plan.

As you said, the PR is assessed on an individual case, and that's why I think I will be non-resident as "I" will have no ties with Canada.

Should I formally (e.g. letter) update CIC on my new conditions to relinquish of my PR or just wait until completing the 5 year period and then not getting my PR renewed ?

Thanks again

As explained in the article, it doesn't really matter where you live. If you have family in Canada, and they are using the social services here, you are deemed to be a resident. It makes perfect sense...if all breadwinners lived abroad (and didn't pay taxes), and their families lived here and used the services, then who exactly would finance the education, roads, social services, etc? As a result, CRA says that if your family is here, then you have clear ties to Canada and are therefore a resident for tax purposes.

 

[NextCanadian]

Thanks. And Yes, it makes perfect sense.

Just a clarification: I am not saying my family is not going to pay taxes; we realize that's unfair, contrary to the "Canadian spirit" and obviously affecting the whole Canadian social system ...

Our family income will be splitted, so my wife can have an income for their life in Canada; such income will be reported in her annual tax declaration and subject to any applicable tax. It will be good enough to cover any of the social benefits received in Canada and to contribute to the social system.

Hence, I think that "my" income after such family income split is not subject to taxes in Canada due to my work and residency conditions in my current country. Am I right ?

Thanks again.

 

[canuck_in_uk]

Just a clarification: I am not saying my family is not going to pay taxes; we realize that's unfair, contrary to the "Canadian spirit" and obviously affecting the whole Canadian social system ...

Our family income will be splitted, so my wife can have an income for their life in Canada; such income will be reported in her annual tax declaration and subject to any applicable tax. It will be good enough to cover any of the social benefits received in Canada and to contribute to the social system.

Hence, I think that "my" income after such family income split is not subject to taxes in Canada due to my work and residency conditions in my current country. Am I right ?

Your wife can't pay taxes on your foreign income. With your family living in Canada, you would most likely be deemed a resident for tax purposes and would be required to pay taxes on all of your income.

You need to contact CRA to determine your tax residency status.

 

[Rob_TO]

Hence, I think that "my" income after such family income split is not subject to taxes in Canada due to my work and residency conditions in my current country. Am I right ?

I don't think you're understanding. Simply having your family living in Canada, can make you a resident for tax purposes regardless if you are living/working full time in some other country.

Read this for more detailed info: http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html