Canada Tax

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I don't see a category of Canadian Tax so I'm posting it…

I don't see a category...

I don't see a category of Canadian Tax so I'm posting it here in Canadian business hoping that someone will be able to answer. I am a Canadian citizen on TN visa working in US since 2009. I stopped filing income tax return in Canada since 2010 because all my income is derived in US since then and we only filed our income tax in US. My wife is a Canadian Permanent Resident and lives with me and she has no income because she is not allowed to work. I registered a small business in Ontario in Feb 2016 but this business never had any income. We also bought a house in October 2016. I filed my income tax return in US for 2016 as I usually do.
My question is am I required to file income tax return in Canada for 2016 (because of the business I registered and because we bought a house in Ontario?) and will I be taxed in Canada for the income that is 100% derived in US?

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4/25/2017

Canadian Tax Expert: Legal Ease, Lawyer replied 6 years ago

Legal Ease, Lawyer

Category: Canada Tax

Satisfied Customers: 148,360

Experience: Lawyer

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Hello! My name is Debra (formerly known as Legal Ease). Thank you for your question. I'm reviewing it now, and will post back again shortly.

Canadian Tax Expert: Legal Ease, Lawyer replied 6 years ago

You have ties with Canada so you cannot really say you have severed all ties.

All Canadian residents have to declare their world wide income even if none of it is earned in Canada.

But you will not face double taxation.

Rather you will receive a foreign tax credit for all tax paid in the US. So the only taxes you will be faced would be the difference from what you would pay tax in Canada and what you paid in the US.

Does that fully answer your question?

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Customer reply replied 6 years ago

I understand. Now I'm just concerned about the previous years if I am considered a resident or non-resident of Canada for income tax purposes. I had a Canadian passport and kept my checking account in Canada all those years. Other than that, I had no significant tie with Canada, no house no dependent, no property. I did not even travel to Canada for a long while, until last year when we started looking for a house to buy. Does that make me a non-resident for tax purposes?

Canadian Tax Expert: Legal Ease, Lawyer replied 6 years ago

Yes.

I believe you did sever all ties fully and completely.

But by starting a new business and buying a house you tied yourself to Canada again.

I don't believe you should be worried about the intervening years.

Legal Ease, Lawyer

Category: Canada Tax

Satisfied Customers: 148,360

Experience: Lawyer

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