I am leaving Canada because I got a temp job outside Canada for a year. I have no ties in Canada, but plan to keep my bank account. I would like to inform CRA and Revenue Quebec. Will this affect my refunds from the tax return of 2021, or I will keep receiving them as scheduled in the notice of assessments at my bank account while I am outside of Canada? Also, will I be taxed by Canada for my salary outside Canada? Thanks
Taxation question: leaving Canada and CRA and Revenue Quebec
- Thread starter CaBeaver
- Start date
I think that, from a 2021 perspective, you'll likely be fine as you're leaving now. 2022 might be more thorny as it appears you'll be maintaining a bank account, which counts towards the "significant ties" clause, although it's not a guarantee. Foreign income may be subject to Canadian taxation (with obvious credits given to avoid double taxation) if the CRA/Provincial governments deem you a resident, so I would (personally) sever as many ties as possible to reduce the overall chance of getting dinged next year.
(long time, no see, by the way!)
(long time, no see, by the way!)
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Indeed. Good to see you are still around. I hope you are doing well.
I need the bank account to receive the tax refunds. I can empty it but I still need it. What would happen if I don't tell them I am leaving? Or if I called them, would they ask me about the ties? I think they would know even if I don't tell them.
As with immigration, I'd stay above board on everything. Once you get your refunds, I'd personally close the accounts - however, there's a spot in the NR73 (the document you need to file to state your intention to emigrate) where they ask you if you plan on maintaining a bank account and if so, why. As long as you give a legitimate reason (which it sounds like you have), then they'll likely not count it against you. From what I've read, they're mostly concerned around people who leave things like empty houses, mail forwarding, etc intact, but say they're abroad and give the impression that they're dodging taxes, so if you look at it through that lens, you'll probably understand what needs to be closed and how to justify what can be counted against you.
From the CRA's own webpage:
"Returns may take up to 16 weeks if you live outside Canada and file a non-resident personal income tax return."
I can't seem to find any info on Revenu Quebec's website for the same, but they state that it takes 4-6 weeks to mail refund checks.
Hope this helps!
Not to make light of it, but there's a pretty extensive list of things that need to be done outlined here on the Government of Canada's website. Of particular note is the "departure tax" - the final coup de grace as the door slaps you on the way out. It appears (and I would like others to comment, if at all possible) that the government will treat it as if you sold and rebought literally everything you own and tax you on the resulting gains (if possible - I imagine most personal non real-estate assets have depreciated over time, but I'm not a CPA)There are forms to fill! I thought I could just tell them over the phone, which I tried to do today, except the waiting time was 4 hours
Further reading on tax implications:
RBC [pdf] detailing the tax implications - mostly centres around disposing of real estate and investments
Ryamond Chabot Grant Thornton - a fair amount of overlap with the above, but is a bit more condensed
Best of luck.
Hi @chs, I called them at 8am sharp and the waiting time is 3 hours already (WTF!!). I am thinking of going ahead and fill and send the form without talking to them, but if I can ask, I have a question regarding my address outside Canada and mailing address: I don't know my permanent address yet, what should I fill in these fields in the form of Determination of Residency form? Or should I fill it and send it once I am settled where I am going? Please advice if you have any info on this. Thanks in advance
Wow, that's nuts; I would imagine they only have one person on duty or somesuch nonsense. The only thing I can think of in terms of mailing address is maybe forward your mail here to a local friend/PO Box that can store and forward it to you as appropriate until you know your permanent address?
Well, it's close to personal tax return deadline... so.... If you are not in a rush, wait till after that.
You keep saying refunds plural. When you leave Canada you will not qualify for certain tax benefits which is why you are required to advise CRA that you are leaving. If this is any form of investment or high interest savings account that would likely be ties to Canada. CRA has a formal process to determine all these things. There is always the possibility of receiving a cheque.