Tax Advice - Am I a non-resident for Tax

[Namelessone77]

Hi,

I need a bit of pratical advice - I am trying to determine if I am considered a tax-resident.

My wife, child and I landed in Canada in June 2009, recieved our PR & SIN cards and left after 30 days. We have both been working overseas, and are now planning to move to settle in Canada.
We have not kept anything in Canada other than our PR?SIN Cards and our bank accounts that were opened to safely handle our funds (for spending). Upon departure I informed the bank that I will not be residing in Canada.

We also filed our tax returns as zero for 2009 & 2010 and go returned tax letters stating no returns and no funds, your balance is nil zero.

Now we are planning to take up residency, rent a home, car and look for jobs.

Question:- Do we owe tax for the past few years? I understand rule is clear for canadian citizens who are non-residents, but NOT landed immigrants. While we earned well while outside canada, we do not have significant savings as most of it was used to pay debt on bad investments AKA Property crash.

I do undertsand that if my family stays in canada i will be taxed on my worldwide income - however what if i relinquish my PR Card? Am i still cconsidered a residnet for tax purpose? (I may have to consider this option as i would need to earn money to support my family in canadda and NOT depend on welfare or drain the system.)

Afdvice or thoughts? moving to canada and then being hunted down for tax popayment will really make moving to canada not very attractive....

 

[steaky]

Why don't you call the toll free number of the International Tax Office of Canada Revenue Agency and explain your case? I am not sure why you file resident tax returns for 2009, 2010 if you were non residents of Canada since July 2009.

 

[info-gc]

If you were out of the country, I am not sure why you filed any tax returns at all.

You file only if you are a resident (present in Canada) at year end.

If you have not claimed and been paid any benefits for the years in question, your worldwide income will be irrelevant.

For the year of re-entering Canada, you will have to file a tax return. There will be a question if you became a resident and on what date. From what I know, they will tax you only on the period you were in Canada and on the Canadian earned income.

 

[steaky]

If you were out of the country, I am not sure why you filed any tax returns at all.

You file only if you are a resident (present in Canada) at year end.

If you have not claimed and been paid any benefits for the years in question, your worldwide income will be irrelevant.

For the year of re-entering Canada, you will have to file a tax return. There will be a question if you became a resident and on what date. From what I know, they will tax you only on the period you were in Canada and on the Canadian earned income.

This is not entirely true. If you owe tax or want to receive benefits, you have to file tax return.

 

[gege]

You are a non-resident for tax purposes and you can choose to file your tax return or not. You should be fine if you indicate you non-resident status in your past tax returns.
Non-resident are not qualified for GST/HST tax credit. If you received GST/HST refund before, you'd better write a letter to CRA and explain it , otherwise you meight face a penalty plus extra interest if CRA find out later ...

 

[me2land]

It seems like you are stuck with Canadian Tax if your family decide to move back to Canada because for sure you would be considered tax resident. If in your immigration process you were the sponsor then even if you relinquish your pr you will still need to file your Canadian taxes until your family in Canada get citizenship. I'm not sure if you can obtain a tax non-residency status after that - very unlike as long as you are married.

As for your 2009 & 2010 taxes only CRA can for sure say if you were non-resident for tax purpose them years. Sometimes even having a bank account can put you in a tax resident status. Hopefully you did not take any benefits after filing zero income in your taxes.

¬m2l