Indian Citizen, Canadian PR & working in US on L1 visa - Tax implications

[rishabshanker]

Hi All,

I am an Indian Citizen holding a Canadian PR, and will start working in the US on a L1 visa (intra company transfer) from my Indian Employer starting 10th Jan 2012. I landed in Canada in April 2011 stayed for 45 days, and again entered Canada in Oct 2011 to sort out issues with the PR card application.

Total days spent in Canada is less than 60
I have a Canadian bank account with Scotiabank in which I depoisted my landing funds
I also have a Scotiabank credit card which I used while in Canada and also in India to create an maintain a credit history

As a result of my future employment in the US I will end up paying taxes there.

My questions are as follows

1. Do I owe any taxes to Canada for 2011 in view of my presence in the country for less than 60 days and also me holding a bank account and credit card? if yes, how do I go about paying the same? (pardon my ignorance)

2. Once I move to the US to work, will I end up paying taxes in both US and Canada?

Please help, I am quite confused.

Thanks

Cheers,
Rishab

 

[Jonboy]

You will only pay taxes on US income in Canada if you are tax-resident here. Usually you are tax-resident where your home and family are. Based soley on what you have posted above I think it unlikely you have established sufficient residential ties to Canada in 2011. This being the case you will not need to file a return. If you continue to live in the US you will be tax-resident there.

Don't forget about the requiremets to keep your PR status.

 

[rishabshanker]

Thanks Jonboy!