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Urgent - Residency status on taxation (Soft landing)

Akots

Full Member
Nov 6, 2018
37
3
Hello,

I did soft landing in canada on 8th Nov. I obtained my SIN yesterday and probably stupidly, applied for a credit card and opened a savings account with TD on 12th November. I just wanted to get a credit card to build credit history asap but i did not realise tax implications.

Now here is a thing - i don't want to immigrate for next two years atleast. I am an Indian citizen with decent job in india. So would i be taxed on my canadian income in Canada now? Do i need to file income tax returns in Canada as well now?

At the time of opening bank account, the bank employee added canada as well as india in the 'country of residence declared for tax purposes' fields.

I am still for one more day in canada and i am bit worried on this. Could you please advice if i should get my bank account closed and credit card application cancelled by visiting bank today?

Please guide.

@pie_vancouver
 
Last edited:

k.h.p.

VIP Member
Mar 1, 2019
7,840
1,707
Canada
These are not necessarily sufficient ties to be considered a resident of Canada for tax purposes. It was stupid to open the account, especially since you'll have to pay fees for the account after an introduction period.
 

Akots

Full Member
Nov 6, 2018
37
3
These are not necessarily sufficient ties to be considered a resident of Canada for tax purposes. It was stupid to open the account, especially since you'll have to pay fees for the account after an introduction period.
I opened a savings account not chequing one and the bank employee said, it is zero balance account and there are no maintenance charges on it. Effectively it is for free. That's why i opened. Do you think i should get it closed anyway?
More importantly, he added me as resident of Canada for taxation purposes in the account, would that make me resident for taxation purpose?
 

MidoRafa

Star Member
Jul 5, 2012
165
24
Category........
Visa Office......
CPC-O
Job Offer........
Pre-Assessed..
App. Filed.......
30-04-2014
AOR Received.
12-09-2014
Med's Done....
22-09-2014
Passport Req..
30-04-2015
Check this: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
Bottom line: you're fine.
Bank account and credit cards are considered "secondary" residential ties and not "significant", so by themselves don't make you a resident for tax purposes - that happens once you have a home and/or a family in Canada. "Country of residence" on the form shouldn't affect this.
A credit card is a good idea to build credit history, provided you use it and pay it off.
The only thing about savings accounts is that any interest you accumulate is technically taxable money, so you may want to postpone putting any real money in there until you move here. Also the number of transactions per month is usually capped.
 
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canuck78

VIP Member
Jun 18, 2017
27,902
6,047
Would cancel the card. Building credit and using a Canadian card creates questions. Why chance it? How much will you actually use the card. Would also not transfer money into your savings account until you actually want to move.
 

rahatil

Newbie
May 17, 2019
4
0
Hi. I wonder why are you guys calling it stupid to open a bank account? Is it just the bank fees?