Tax implications - tips for our plan please

[smile1212]

My husband (Canadian citizen and we have married for 10 years living in HK) applies as sponsor for my PR. While we are waiting for the application approval process which may takes at least 8 months or one year, we would like to start our planning and appreciate any tips:

1. We hope after I get the visa issue, I land in Canada with my husband together (before visa expiry) to start my PR. Assume we stay in Canada for 3 weeks only, then both my husband and I can go back to Hong Kong and continue living together - am I accumulating residency days already by continue living with my husband even in Hong Kong? is there any action or document proof that we should maintain to prove we live together?

2. ideally if no.1 can be done, then I will continue working in HK for 3 to 5 more years before we both move to Canada live/retire permanently (we hope to be able to earn more income before we secure our retirement living). Will my HK employment income be subject to Canada's worldwide income tax once I start to be PR after landing ?

3. ultimately my husband will sell the property we are living in now in HK, is the following timing of sale making a difference in Canada tax liability -
> if he sells before or after my visa issue
> if he sells before or after my landing
> if he sells before or after we both move to Canada permanently

4. as we ultimately will live in Canada permanently, we are thinking of buying property for our living in the future; is the following timing of buying making a difference in Canada tax liability -
> if buy before or after my visa issue
> if buy before or after my landing
> if buy before or after we both move to Canada permanently

Thanks a lot for helping us with these key questions. Great appreciation in advance.

 

[steaky]

1) You can provide evidence (covering the entire period which you are not in Canada) such as joint bank statement for both you and your husband addressed to same address showing that you and your husband are living in the same address;
2) No, unless you and/or your husband became residents of Canada for tax purposes;
3) It only matters after you and/or your husband became residents of Canada for tax purposes;
4) It would depends how you would be using (such as renting out) this Canadian property while you and/or your husband returns to HK.

 

[smile1212]

thanks a lot!

 

[steaky]

Just to add that you would be liable to property tax payment once you bought a Canadian property (just like buying HK property) regardless:

> if buy before or after your visa issue
> if buy before or after your landing
> if buy before or after you both move to Canada permanently

 

[Amadan123]

For your inquiries, a good read would be CRA's Income Tax Folio - S5-F1-C1: Determining an Individual's Residency Status.

Hope you find the folio beneficial.

Sincerely,
Madan CA
www.madanca.com