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I'm afraid it depends on where you're going, because of tax treaties. The only Canadian tax treaties I've seen provide that if you are considered a resident of the other country, and your "residential ties" are closer in the other country than in Canada, then you are a resident of the other country, even if you don't rent out your home.
I am going to a country that has no tax treaty with Canada
I do however have a small business in canada that I can mange online
and I have this condo
I will stop my health card
do I need to cancel my bank account?
In case of rent, if my expenses (condo fees, property tax, and mortgage) exceed my rent, am I considered to have any kind on taxable income from the condo rent? Say $1000 condo fees, $500 property tax, and $2500 mortgage on a rent of $3000
The bank account role is to get the rent and business income
I'll have to check. It's a more complex situation if you retain a potential residence, even if you rent it out. Give me a moment to check the precise wording.
I will have far more residential ties in the country I am going to
Although renting out your Canadian home to an unrelated party is a factor, the most critical factor is that you need to establish significant residential ties in the other country, and that you objectively show no plans to return to Canada. As for renting out your home, you could return to take possession of it when the lease expires. Bank accounts, drivers's
OOPS, I hit the wrong key. Give me a moment....
In the absence of a treaty, you need to establish both that you do not have significant residential ties to Canada, which seems to require renting your home, and that you establish significant residential ties to the other country. Secondary residential ties include:
I already purchased a house there, and most of my family and my wife's family lives there
Secondary residential ties include, from tax folio S5-F1-C1, paragraph 1.14, include:
The kids are now very small but maybe we decide to go back when it's time for high school
Well I have a Canadian passport and an ontario driver license
so you are saying I also need to cancel my driver's license?
Again, in order to become a non-resident, you need to establish that you do not have significant residential ties.
All Canadians have a passport, no?
If you become a resident of the other country, they should insist that you get a drivers license there.
There are millions of canadian expats. If they give up their passport, they are no more canadian expats since they are no more canadian
I already have a diver license there
You're correct as to the passport; as tax residence isn't affected by citizenship, the passport shouldn't be a major factor.
so in your opinion
But you should only have a drivers license in one jurisdiction, even if not required by law.
I should sell my condo instead of renting it
so that leaves my small business and its related bank account
and the ontario driver license
I don't plan on renewing the ontario license once it expires
but do I have to actually go and cancel the active license I have
I don't know; I'm basing my assertions on the law and regulations, but I can't be sure how the CRA (or whatever it's called now) applies them without looking at specific cases. Selling the condo and cancelling the Ontario drivers license would certainly be points against significant residential ties. Paragraph 1.12 of the Folio states that "leas[ing] a dwelling place located in Canada to a third party on arm's-length terms and conditions" will be taken into account by the CRA, and noting the state of the real estate market at the time of departure. I would think that would mean that if the real estate market is down, leasing might be considered acceptable; but, if it is up, then you should attempt to sell.
So basically I file my taxes as non-resident and see if it's accepted
or can they go back years in the future, say in 10 years, and change their mind ?
Pretty much. You can request a preliminary ruling using form NR73, or or request an Advance Income Tax ruling, if you want a more definite reply.
I don't think they can go back that far.
In other words, if I files my taxes as expat in 2015 and it got accepted, and nothing changes in my situation in 2016-2020, they can't suddenly decide that they are now not happy with expat status, even if all has remained the same
Interesting about that Advanced Income Tax ruling
How long would that take? Do you have any idea?
The document http://www.cra-arc.gc.ca/E/pub/tp/ic70-6r5/ic70-6r5-00e.pdf says that it should be within 60 days (90 days if it requires interpretation); but that it costs $100/hr for the first 10 hours work, and $155/hour for each additional hour; and you need to make an initial payment of 5 hours + GST ($535).
Wow! You have been of great help Arthur. Thank you so much.
Sorry, that should have for each hour of the first 10 hours work.
I really appreciate your assistance
I see you have a Math degree
I have a BSc in Math
and then moved to medicine
but really thank you
I am more clear about what I need to do now
have a nice evening