+1(514) 937-9445 or Toll-free (Canada & US) +1 (888) 947-9445

Tax concern - Am I a partial resident?

kurtrules

Star Member
May 6, 2016
61
6
Hi,

I posted this query in the settlement forum, but I was redirected here.

I have a complex situation and I need to ask a few questions here. My wife, daughter and I landed in Toronto in Feb of this year, and were granted PR status. We left toronto a week later. In that week I opened an account in TD bank, however, that no transactions occured.

Our PR cards arrived at a relative's place in April, and he posted them to us here in Singapore where both of us had our jobs.

My wife got a job this August, and she left for Toronto to settle down. We rented a property beforehand (In both our names - my name was added as I was the one with a higher and more stable income in singapore, had a good credit history here, and was able to prove to the landlord that without a canadian income, i could pay the rent for the entire year), opened a hydro account, got a rogers net connection. My wife and my daughter left, and I am still here. She has started her job, filled in her initial tax forms, submitted to the employer.

I plan to move either late this year, or early next year. Except for the week in Feb, I have never been to Canada. Till this August, had no property (rented or otherwise), no ties, nothing with Canada. Even now, my wife and daughter are there but they are not my dependents or anything. My wife provides for her, as she is earning.

Once, I get a job there, later this year, I will move.

My questions are:

1) Will I be considered a tax resident of canada for 2017?
2) If yes, will I be considered a tax resident for the entire year 2017 or from august, or from when I am back in Canada for good?

As per CRA, the substantial ties are:

1) Own a home
2) Have a spouse
3) have dependents

I have 2) from August, but no financial ties to me.

Thanks in advance. I ask, because I will pay substantial taxes here in Singapore for 2017, and even after deductions (treaty to avoid double taxations), the amount will be substantial. And that if of grave concern to me.

Thanks again! Your assistance is highly appreciated.

PS: We have neither submitted nor claimed CCB. My daughter will start going to a child care in September, currently she is being cared for by my mother in law who is on a tourist visa there.
PPS: I only have a SIN, an account with interest around 6 cents earned this month, and my PR card. My wife has applied for hers and my daughter's health card.
 

steaky

VIP Member
Nov 11, 2008
10,554
756
Job Offer........
Pre-Assessed..
I had a friend in similar situation, but unlike your wife, she's unemployed. The husband declared himself non resident during the years the wife and her child lived in Canada. The wife received CCTB payments from the government.
 

kurtrules

Star Member
May 6, 2016
61
6
So, technically I should be in a better position than your friend right? Because my wife will be the one receiving the payment for my child, even though both parents have to provide their SINs. Also, she is employed, so I don't support them, so that helps?

Any other suggestion, on what I can do to fool proof my case when eventually I get to fill the tax forms?
 

kurtrules

Star Member
May 6, 2016
61
6
Ok, So I got this from the CRA website:


""Date of entry in Canada
When completing this area on your return, enter the date you became a resident of Canada for income tax purposes.

Information about your spouse or common-law partner
Enter your spouse or common-law partner's net world income for 2016 regardless of their residency status. Net world income is the net income from all sources both inside and outside of Canada. Underneath, enter your spouse or common-law partner's net world income for the period you were a resident of Canada. If applicable also enter the amount of universal child care benefit (UCCB) included on line 117, and the amount of UCCB repayment included on line 213 of his or her tax return.

What income do you have to report?
For the part of the tax year that you WERE NOT a resident of Canada
You have to report the following amounts:

  • income from employment in Canada or from a business carried on in Canada;
  • taxable capital gains from disposing of taxable Canadian property; and
  • taxable part of scholarships, bursaries, fellowships, and research grants you received from Canadian sources.
Note
For the part of the year that you were not a resident of Canada, do not include on your tax return any gain or loss from disposing of taxable Canadian property, or a loss from a business carried on in Canada, if, under a tax treaty, the gain from that disposition or any income from that business would be exempt from tax in Canada. For more information, go to Non-residents disposing of certain Canadian Properties.""

So that means I declare my Singapore income from August 2017-Dec 2017 next year right?
 

steaky

VIP Member
Nov 11, 2008
10,554
756
Job Offer........
Pre-Assessed..
Assume you declare yourself non resident, why give your SIN instead of getting a temporary tax number from CRA? I suggest you or your wife get a professional accountant to sort it out.
 
Last edited:

canuck78

VIP Member
Jun 18, 2017
33,594
7,521
You will need to fill this form out. CCB will be based on your previous year's world income. CCB is based on family income. I would suggest you get an accountant until you get a job in Canada since you have so many questions.

You will need to fill this out.
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc66sch-status-canada-statement-income.html

It also makes no difference if your wife is unemployed or working. The example of the guy declaring himself a non-resident while leaving his wife and kids may not be legal we don't have many details.
 

kurtrules

Star Member
May 6, 2016
61
6
Thanks for your inputs. When should I hire an accountant? I presume next year before filling in my 2017 return
 

canuck78

VIP Member
Jun 18, 2017
33,594
7,521
Yes. Next year for your 2017 returns. They will be able to figure out your resident non-reaidemt issues and treaties between countries. Most people hire an accountant when dealing with filing in multiple countries.
 

kurtrules

Star Member
May 6, 2016
61
6
Ok, sure, will do that. There is treaty to avoid double taxation between Canada & Singapore. I would not have bothered with all this, if there hadn't have been a drastic difference between tax rates in Singapore vs Canada.
 

kurtrules

Star Member
May 6, 2016
61
6
Updating this thread for the benefit of others:

I have started living in Toronto since the 20th Jan 2018. I called up the CRA for some questions, and at the same time, queried about the questions I had in August, that I put forward here. As per the response, and this is what the lady said verbatim "Sir, you are overthinking".

For new residents, you develop residential ties, "when" you actually begin to stay here. As you have not been here in 2017, you have been customarily living in another country, you are a resident for tax purposes of that country, for all tax purposes are a non-resident of Canada, and unless you have earned some income from Canada, you do not need to file taxes for 2017.
 

canuck78

VIP Member
Jun 18, 2017
33,594
7,521
Updating this thread for the benefit of others:

I have started living in Toronto since the 20th Jan 2018. I called up the CRA for some questions, and at the same time, queried about the questions I had in August, that I put forward here. As per the response, and this is what the lady said verbatim "Sir, you are overthinking".

For new residents, you develop residential ties, "when" you actually begin to stay here. As you have not been here in 2017, you have been customarily living in another country, you are a resident for tax purposes of that country, for all tax purposes are a non-resident of Canada, and unless you have earned some income from Canada, you do not need to file taxes for 2017.

Did you mention that your wife and daughter have been living in Canada since August? Although you claim they are not dependents you are a family unit you are interdependent. Don’t trust the cra tax line.
 

kurtrules

Star Member
May 6, 2016
61
6
Yes, I did mention that. Explicitly mentioned primary ties, and then secondary ties. That's when the "overthinking" comment came from. My wife is filling her taxes for 2017, for the first time here. In-fact, I am her dependent rather than the other way around, now that I am unemployed.

I wanted to create an account with CRA using the SIN, and dig deeper. Stranger fact - I cannot create an account unless I have filed taxes, as the lady mentioned "We don't have your information". In my wife's case it is quite surprising; her employer issued the T4, surely it must have been shared with the CRA as well.