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moot point · Joined: 22 Feb 2005 Posts: 441

Scary thread, being a Canadian myself and not having done anything formally about being a non-resident.

In my case, when I came to Japan straight after finishing up an under-grad. degree in Canada our family accountant suggested just un-doing all ties in Canada. I didn't have much other than a few bank accounts. I cleaned out all accounts, on his advice because if I collected a penny in interest then I would be obligated to fill out an income-tax form. This left me with no ties in Canada. I have since returned to Canada on several occasions and when I am required to fill in that green/blue (?) paper upon arrival I have been repeatedly told that I classify as a non-resident even though I mistakenly checked the "resident" box.

So far, no hassles mind you no Canadian benefits either.

Celeste · Posted: Tue Jun 14, 2005 10:07 pm Post subject:

I made the same mistake on that card! It used to say Canadians/Non-Canadians, but now it says Residents/Visitors (or it did 18 months ago when I last went back. I checked the wrong box and the immigration officer corrected it for me. (After 14 hours in transit, one has difficulty with these things!) In 6 weeks I am going back for good. WHich box do I check then?? I will probably just leave it blank and get the immigration officer to decide for me.

canuck · Joined: 11 May 2003 Posts: 1921 Location: Japan

craven · Joined: 17 Dec 2004 Posts: 130

That's scary that the passport counts for 2...I myself am probably right at the 6 tie limit. Thanks for posting the info on the relevant forms. I'd talked to my local accountant before I left, but it was kind of a small town and he really had no idea what to do for folks considering being abroad for a long time.
Yeah, I get a little miffed at the inconsistancy too...I think the best bet, if you are sure you have done nothing wrong, is to make sure you keep ALL records of your earnings and taxes paid while here in Japan. That way, if the tax man DO cometh you can at least mount a good defence!
This was a great thread...

JimDunlop2 · Joined: 31 Jan 2003 Posts: 2286 Location: Japan

Honestly, kids. I really wouldn't get too caught up in counting ties and even figuring "6" as the magic number. Everything I've read seems to point towards the fact that there really are no hard and fast rules in determining residency, and that it's more of an individual-case assessment. Someone could have 7 or 8 ties perhaps but not necessarily be considered a resident or conversely, 4 or 5 and have the opposite verdict. I'd take all of it with a grain of salt.

canuck · Joined: 11 May 2003 Posts: 1921 Location: Japan

I would look at 6 as the magic number. It's what I've been told many times, and from different people and from the horse's mouth. From all the inconsistencies, it's one that has been consistent.

Some of the big ticket items that could disqualify you very quickly are houses and property. With any of these, don't hold your breath.

Kimura · Joined: 08 Oct 2004 Posts: 22 Location: Toronto, ON

Just out of curiousity, has anybody filled out that non-resident status form? I am in the midst of trying to legally avoid paying Canadian taxes. In the form it requires proof that you are paying taxes in another country. How do I get this proof? I have asked the company I work for and they said they can't help me. Any thoughts?

canuck · Joined: 11 May 2003 Posts: 1921 Location: Japan

ionix- · Joined: 25 May 2005 Posts: 37 Location: Miyakonojo, Japan

I'm in the same situation. I am in Japan now... I wonder if I have to fill this document in or just check non-resident on my revenue form.

Kimura · Joined: 08 Oct 2004 Posts: 22 Location: Toronto, ON

To answer you earlier question Canuck, yes I am still in Japan. I plan on being here for another 7 months. But I figured I would apply for my non residency status now and hope for the best. I was told by someone at the Revenue office that it can take anywhere between 4 to 12 weeks to process your application. You got to love Canadian Buearocracy.

canuck · Joined: 11 May 2003 Posts: 1921 Location: Japan

Kind of hard to try for non residency status when you're returning in 7 months. Kind of proves their point right there. Good luck.

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

Kimura, how long do you plan to be overseas altogether? The general rule is 2 years and a day, but there are exceptions. Less than a year or a year and forget about it.

canuck · Joined: 11 May 2003 Posts: 1921 Location: Japan

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

Kimura · Joined: 08 Oct 2004 Posts: 22 Location: Toronto, ON

Thanks alot for the information guys. I have already spent 7 months in Japan, so by the end of my contract I expect to have been here for a little over a month. But it seems that that won't qualify me for a non residency status.

For those who did pay taxes, didn't you find it tight on the money to pay Canadian taxes. I recently moved cities and am finding that I am short on money without even paying my taxes.