Losing PR Card for declaring non-residency

[adds416]

I am in a dileama that I hope someone can answer for me. Me (canadian citizen) and my wife (canadian PR) moved to USA last year for a new job. However, since we are both still considered residents of Canada, I had to report US income and pay difference in tax, which was not a small amount. The only way to not report US income in Canada is to declare non-residency in Canada.
My Question:
1) How can we declare non-residency in Canada? ie What forms to fill up?
2) Will my wife lose her PR card? Will she still be able to visit Canada once in a while?
3) What else will we (or have to) lose in the process? OHIP? Canada bank account? Memberships?
4) If we have to move back to Canada, how can get residency back?

Thanks in advance!

 

[steaky]

1) I suppose one declare non-resident (for tax purposes) if one filing a non resident tax return
2) How can anyone answer that? For example, your wife can lose her PR card as soon as she flush the toilet.
3) Many people non resident keep their Canadian account and files non resident tax return
4) Certainly

 

[adds416]

Thanks for the reply.
1) I see there is a box on first page for departure date. Is that how we declare non-resident? I also see an NR73 form, do I have to fill that too?
2) I meant losing PR status if declaring non-resident?
3) How would our tax returns in Canada look like? $0 income shown on the T1 general? I thought after non-resident, we dont have to file canada tax return.

 

[steaky]

If you are in doubt, you can always phone Canada revenue agency hotline and speak with an agent.

Just a side note, many people keep their PR status after declare themselves non resident for tax purposes.

 

[torontosm]

I am in a dileama that I hope someone can answer for me. Me (canadian citizen) and my wife (canadian PR) moved to USA last year for a new job. However, since we are both still considered residents of Canada, I had to report US income and pay difference in tax, which was not a small amount. The only way to not report US income in Canada is to declare non-residency in Canada.
My Question:
1) How can we declare non-residency in Canada? ie What forms to fill up?
2) Will my wife lose her PR card? Will she still be able to visit Canada once in a while?
3) What else will we (or have to) lose in the process? OHIP? Canada bank account? Memberships?
4) If we have to move back to Canada, how can get residency back?

Thanks in advance!

1) To declare yourself a non-resident, you can either file your tax return (if you were a resident for a partial year) and list the date you left Canada. Alternatively, if you weren't residing in Canada in a specific year, you don't need to file a return at all. There is no specific CRA form that you have to fill up to
2) Given that you are a citizen, your wife will maintain her PR status, regardless of how long you are away.
3) You will lose OHIP as you are no longer residing in Ontario. You can keep your bank accounts, as these are considered secondary ties. I'm not sure what sort of memberships you are referring to, so can't answer that.
4) If you return to Canada, you will automatically re-establish your residency. After a 90 day wait period, you will become eligible for OHIP.

 

[Rob_TO]

3) You will lose OHIP as you are no longer residing in Ontario. You can keep your bank accounts, as these are considered secondary ties. I'm not sure what sort of memberships you are referring to, so can't answer that.

Have to be careful about this. While a very small number of secondary ties may be ok, having many of them could result in CRA declaring you were still a resident for tax purposes.

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html
Secondary residential ties
1.14 Generally, secondary residential ties must be looked at collectively in order to evaluate the significance of any one such tie.

So having just a bank account may not be a factor, but having a few bank accounts, property, leases, RRSPs, memberships, etc... may cause CRA to not accept the non-residency claim if ever audited. The non-residency claim is supposed to be used by those leaving Canada permanently. If one has an intention of returning in several years, then they may not be able to declare non-resident status to begin with.