New PR - 2018 Tax Returns - Tax resident or not

[FReza]

Hi All,

I am planning my soft landing (2 weeks) in Feb-18. Then will move permanently in 2019. During my soft landing i am planning to apply for SIN, clear Driving License (G1) & Open a bank account. My question is will i be treated as resident / deemed resident for tax purposes in year 2018?

Although I do not have any significant ties, but i am fulfilling some secondary ties with Canada. I want to be sure that if i am, so maybe i wont be taking my driving license right now. Or maybe not open bank account. I do not want to pay tax on world income.

Thanks

 

[Investocrat]

No worries, you need stronger ties than these to be considered tax resident in Canada for 2018 e.g. residence in Canada, spouse or kids living in Canada, work in Canada, etc. You should be fine.

 

[FReza]

But i was just reading through the rules mentioned in canada.ca . It states that multiple secondary ties can lead to an individual to be treated as factual tax resident.

The secondary ties i am meeting:
1) Landed immigrant (PR)
2) Economic ties - Bank account
3) Driver's License
4) Membership in Canadian Professional Organization (I am a member of CPA -British Columbia)





For reference, Extract of website:
(https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-1-residency/income-tax-folio-s5-f1-c1-determining-individual-s-residence-status.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. For this reason, it would be unusual for a single secondary residential tie with Canada to be sufficient on its own to lead to a determination that an individual is factually resident in Canada while abroad. Secondary residential ties that will be taken into account in determining the residence status of an individual while outside Canada are:

• personal property in Canada (such as furniture, clothing, automobiles, and recreational vehicles);
• social ties with Canada (such as memberships in Canadian recreational or religious organizations);
• economic ties with Canada (such as employment with a Canadian employer and active involvement in a Canadian business, and Canadian bank accounts, retirement savings plans, credit cards, and securities accounts);
• landed immigrant status or appropriate work permits in Canada;
• hospitalization and medical insurance coverage from a province or territory of Canada;
• a driver's license from a province or territory of Canada;
• a vehicle registered in a province or territory of Canada;
• a seasonal dwelling place in Canada or a leased dwelling place referred to in ¶1.12;
• a Canadian passport; and
• memberships in Canadian unions or professional organizations.

 

[pie_vancouver]

Don't give yourself a headache, you are non-resident for tax purposes.
You don't even have to apply for SIN after you land, you can do it when you come back permanently.