Determination of residency status for tax purposes (?)

[GeorgeForest]

Hello everyone, I stumbled upon this forum and I hope someone knowledgeable can help.

I am a PR and did a short-landing last year and was back in my country shortly thereafter, and still am. My spouse recently did a hard-landing. I understand this means that I have Significant residential ties to Canada but does it also mean that I have to pay income taxes in Canada on earnings gained in my home country from the date my spouse became a PR and until I return to Canada to settle?

The CRA website mentions 3 broad sections:

Your residency status if you left Canada
Your residency status if you entered Canada
Your residency status if you normally, customarily, or routinely live in another country

I believe the one that applies to me is the 3rd one, EXCEPT I do have a residential tie in Canada, my spouse.

 

[torontosm]

Hello everyone, I stumbled upon this forum and I hope someone knowledgeable can help.

I am a PR and did a short-landing last year and was back in my country shortly thereafter, and still am. My spouse recently did a hard-landing. I understand this means that I have Significant residential ties to Canada but does it also mean that I have to pay income taxes in Canada on earnings gained in my home country from the date my spouse became a PR and until I return to Canada to settle?

The CRA website mentions 3 broad sections:

Your residency status if you left Canada
Your residency status if you entered Canada
Your residency status if you normally, customarily, or routinely live in another country

I believe the one that applies to me is the 3rd one, EXCEPT I do have a residential tie in Canada, my spouse.

With your spouse residing in Canada, you certainly do have significant ties which would render you a resident for tax purposes.

 

[keesio]

A spouse is definitely a significant residential tie for taxation purposes. As for if you have to pay taxes of foreign income earned abroad, much of it depends on if your home country has a tax treaty with Canada which allows you to offset your Canadian taxes owed with taxes you paid in your home country.

 

[GeorgeForest]

A spouse is definitely a significant residential tie for taxation purposes. As for if you have to pay taxes of foreign income earned abroad, much of it depends on if your home country has a tax treaty with Canada which allows you to offset your Canadian taxes owed with taxes you paid in your home country.

Thank you for your response. Unfortunately my country does not have a double taxation agreement so that is out of the window. But I am still unsure about whether my world income becomes taxable in Canada from the day of my landing or from the day I establish residential ties in Canada (through my spouse). I think it would be the latter but can you confirm?

Also, I did not intend to move to Quebec when I applied for PR. But now, I am looking at housing prices and I would like to live on the Quebec side and work on the other. Would that be an issue to CIC, as in would that be considered as my having misinformed them/hidden my true intentions?

 

[keesio]

I am not a tax expert so I can not say with 100% certainty. But I believe it it would be the day you established residential ties in Canada via your spouse (since you never personally established residential ties).

What immigration stream did you use to get PR in Canada? PNP?

 

[canuck78]

If your spouse and perhaps children live in Canada and use the various services don't you think you would have to contribute to the tax base? Not sure if your wife works or not but it wouldn't make sense if everyone left their spouses and their children in Canada and made their income in another country and didn't contribute.

 

[GeorgeForest]

@keesio

Yes I think the same thanks.

No, I went through FSW.

 

[GeorgeForest]

If your spouse and perhaps children live in Canada and use the various services don't you think you would have to contribute to the tax base? Not sure if your wife works or not but it wouldn't make sense if everyone left their spouses and their children in Canada and made their income in another country and didn't contribute.

Thank you for chiming in but the way you asked your question sounds to me that you are implying I do not want to pay taxes in Canada; this is not at all my issue.

The question I asked was: "[...] whether my world income becomes taxable in Canada from the day of my landing or from the day I establish residential ties in Canada (through my spouse).".

 

[canuck78]

Thank you for chiming in but the way you asked your question sounds to me that you are implying I do not want to pay taxes in Canada; this is not at all my issue.

The question I asked was: "[...] whether my world income becomes taxable in Canada from the day of my landing or from the day I establish residential ties in Canada (through my spouse).".

Yes you are right I misread your question I apologize. Have tried to explain many times why others need to pay income tax on their world wide income even if their wife is employed in Canada or they relinquish their PR status.. Yes when your family lands on a permanent basis is the day you establish residential ties.

 

[keesio]

@keesio

Yes I think the same thanks.

No, I went through FSW.

See: https://www.canadavisa.com/canada-immigration-discussion-board/threads/express-entry-questions-can-i-live-in-quebec.395993/