Hello,
I left Canada in middle of 2009 with my wife and kid. However we always and still intend to come back. So it was never a second thought and we always filed as residents. We maintain bank accounts, credit cards, driver's license, RESP account, Health Card and Passport. We also try to visit Canada frequently as my parents still live there and they have a house that they own.
My problem is as follows: Income living abroad is not very high and every time i file it shows some kind of refund. I then artificially inflate my income to avoid getting refunds as it did not feel right to get refunds when i did not pay into the system while i am away. This i did for 4-5 years. however the problem is now arising when i was penalized CAD$2500 for filing T1135 late for 2012 Tax year, in the same breadth most probably i would end paying canadian taxes for my 2014 income.
Question: Resident / non resident status does not matter to me. I am happy both ways. But my problem is that if i continue filing as resident CRA might get suspicous as to why i am doing this and come after me for no reason. If i change to non resident then they might come after me that if i had'nt changed for 5 years then why am i changing now. They would have arguments against me either way.
So i am not sure what i should do? I do not claim CCTB, GST/HST even when i file as resident but looking at my bank account i do get approx $500 from CRA in one shape or another (RESP CEGS). and filing for 2014 return when i inflated my income to avoid a refund again i see a WITB line which reduces the overall tax obligation. So what down the road they claim i should not have claimed WITB.
Please someone give me some good advise as to what i should do in this matter. Should i err on the residency side or on the non-residency side
I left Canada in middle of 2009 with my wife and kid. However we always and still intend to come back. So it was never a second thought and we always filed as residents. We maintain bank accounts, credit cards, driver's license, RESP account, Health Card and Passport. We also try to visit Canada frequently as my parents still live there and they have a house that they own.
My problem is as follows: Income living abroad is not very high and every time i file it shows some kind of refund. I then artificially inflate my income to avoid getting refunds as it did not feel right to get refunds when i did not pay into the system while i am away. This i did for 4-5 years. however the problem is now arising when i was penalized CAD$2500 for filing T1135 late for 2012 Tax year, in the same breadth most probably i would end paying canadian taxes for my 2014 income.
Question: Resident / non resident status does not matter to me. I am happy both ways. But my problem is that if i continue filing as resident CRA might get suspicous as to why i am doing this and come after me for no reason. If i change to non resident then they might come after me that if i had'nt changed for 5 years then why am i changing now. They would have arguments against me either way.
So i am not sure what i should do? I do not claim CCTB, GST/HST even when i file as resident but looking at my bank account i do get approx $500 from CRA in one shape or another (RESP CEGS). and filing for 2014 return when i inflated my income to avoid a refund again i see a WITB line which reduces the overall tax obligation. So what down the road they claim i should not have claimed WITB.
Please someone give me some good advise as to what i should do in this matter. Should i err on the residency side or on the non-residency side