Returning citizen- TSFA / Residency questions

[nedvert]

Hi there.

Just wanted some advice if possible and appreciate the help ahead of time

I have been working abroad as part of Canadian company then moved over to work / live locally though for the past few years have been pretty much living on my savings from my previous work experiences. I have been updating my address on the MYCRA website and have had no income from Canada outside of my RRSP and have no balance or not owing anything to the government at this point.

I started investigating TFSA since I will be returning to Canada perhaps in April and determined that updating the address on MYCRA doesn't seem to indicate anywhere that I was officially classified as a non-resident as it still states that tax returns have not been received. (Though nothing owed, as no income, etc.)

My issue is to open a can of worms to avoid a big problem later. My TFSA contribution room has been going up and at this point since I live in another country I am concerned that if I go by that they would eventually discover that and hit me with fees, taxes penalties.

I still maintain a Canadian driver's license and have multiple banks and mailing address so the issue is to determine exactly "when" I became a non resident for tax purposes if they would determine at all. My biggest fear at this point is that they might hold it against me that I thought by updating the addresses on their MYCRA site that this would automatically change the residency status.

Questions to ask are.

1. I want to correct (if required) the inaccurate contribution room just not 100% sure how to go about it as when I get someone on the phone, I personally cannot say exactly when this would have happened since I maintained that I was temporary staying outside of Canada until my annulment was finalized. I just have no clue on how they would even determine it exactly on what year. Just not entirely sure how to approach but I want to be honest. I am skeptical to just "assume" that since I have the secondary ties they wouldn't have labeled me a non resident.

2. Will they charge me or give me penalties for the mistake or omission of not updating the residency status if they determine that I should have known or whatever. I know that they can be quite "cold" when it comes to things like that. Keep in mind there is no income or money owing or anything like that, but I am still concerned of course. I read online that since I owe nothing, it won't matter but I am still concerned.

3. Any advice on how to approach this as I will return to Canada and want to start contributing again, but want to get this all cleared up as much as possible.

Thanks! I know this might not be clear, but if you can help that would be great and I can clarify anything required and give further details.

 

[canuck78]

Hi there.

Just wanted some advice if possible and appreciate the help ahead of time

I have been working abroad as part of Canadian company then moved over to work / live locally though for the past few years have been pretty much living on my savings from my previous work experiences. I have been updating my address on the MYCRA website and have had no income from Canada outside of my RRSP and have no balance or not owing anything to the government at this point.

I started investigating TFSA since I will be returning to Canada perhaps in April and determined that updating the address on MYCRA doesn't seem to indicate anywhere that I was officially classified as a non-resident as it still states that tax returns have not been received. (Though nothing owed, as no income, etc.)

My issue is to open a can of worms to avoid a big problem later. My TFSA contribution room has been going up and at this point since I live in another country I am concerned that if I go by that they would eventually discover that and hit me with fees, taxes penalties.

I still maintain a Canadian driver's license and have multiple banks and mailing address so the issue is to determine exactly "when" I became a non resident for tax purposes if they would determine at all. My biggest fear at this point is that they might hold it against me that I thought by updating the addresses on their MYCRA site that this would automatically change the residency status.

Questions to ask are.

1. I want to correct (if required) the inaccurate contribution room just not 100% sure how to go about it as when I get someone on the phone, I personally cannot say exactly when this would have happened since I maintained that I was temporary staying outside of Canada until my annulment was finalized. I just have no clue on how they would even determine it exactly on what year. Just not entirely sure how to approach but I want to be honest. I am skeptical to just "assume" that since I have the secondary ties they wouldn't have labeled me a non resident.

2. Will they charge me or give me penalties for the mistake or omission of not updating the residency status if they determine that I should have known or whatever. I know that they can be quite "cold" when it comes to things like that. Keep in mind there is no income or money owing or anything like that, but I am still concerned of course. I read online that since I owe nothing, it won't matter but I am still concerned.

3. Any advice on how to approach this as I will return to Canada and want to start contributing again, but want to get this all cleared up as much


You need to contact CRA so they can determine whether you were a resident for tax purposes or not. It is not as clear cut as people imagine. If it is determined that you were a resident for tax purposes you will required to pay the payments plus any penalties like anyone else who is discovered to have been a resident for tax purposes.


If you haven’t informed the provincial health authority of your absence that is also something that you are required to do. I would add notifying them to your list of things to do. Every province have their own residency requirements to retain your provincial health coverage. It is a confusing system. Even if you have a valid health card you may not actually qualify for provincial healthcare and can be asked to pat back any care you receive. There is also issues with fraud where cards and card numbers are used by other people or people using it when they haven’t met the residency obligation. If you haven’t met the residency obligation to keep your healthcare coverage in the province you just need to reapply again. Currently may wait times to receive coverage have been waived so if you reapply your coverage will start immediately.

 

[nedvert]

Thanks for this. Will contact them as you indicated. I suspect that when I do they might open up a big thing on me but that's OK. The only thing I think I that might occur is my TSFA will be adjusted to be accurate since I didn't have any income or gains outside of my RRSP. (Which was existing before that.)I know this isn't an excuse however my tax person/accountant (who has since deceased) didn't inform me of anything special I had to do for this and the CRA login doesn't seem to identify exactly that you are a resident/nonresident. (It might be there but I can't find it, and only discovered this when I researched TSFA, and I thought that simply putting in and updating to a foreign address was sufficient.)


I no longer have provincial health care and the plan is when I go back to reapply. Still not sure yet which province.

Thanks for your responses