Job Discussion Forums

philthychops · Joined: 01 Mar 2006 Posts: 9

Good day all,

Im going to be coming over to Japan early May and I was just wondering how non-residency works. Do I have to fill out and submit forms in order to claim non-residency status or do I just submit those forms if the CRA questions my residency status? Im cutting all my residential ties (OHIP, all but one credit card and bank account, cars, no spouse, etc.) so will I have any problems obtaining non-residency status? If anyone can shed some light on this it would be greatly appreciated.

Cheers

seanmcginty · Joined: 27 Sep 2005 Posts: 203

You shouldn't have any problems. There is a form you should fill out before you go, just to let revenue Canada know you are going to be out of the country. When you want to come back you send in another form saying "hey, I'm back. Start chargin me tax again."

I didn't know any of this until 5 years after I left Canada and wanted to come back. I talked to a Canadian accountant and he told me to just send in the "hey, I'm back" form and thats what I did. A few months later I got a letter from Revenue Canada saying something to the effect of "Right, as of March 25th you are back in Canada. Gotcha. You're going to have to start paying Canadian taxes again as of that date."

Easy.

Tottori-Dood · Joined: 27 Mar 2006 Posts: 44

Can you be more specific?

What is the form called specifically?

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

Tottori-Dood · Joined: 27 Mar 2006 Posts: 44

search for form NR73 on CCRA online

Jazz1975 · Joined: 14 Feb 2006 Posts: 301 Location: Zama, Kanagawa

Thanks, everyone. This is helpful for me as well. However, I have one question: If I happen to go to Japan, then come back to visit, do I have to pay to see a doctor? I heard that once I declare non-residency, I am no longer seen as a Canadian resident and therefore, I'm not eligible to use OHIP.

Tottori-Dood · Joined: 27 Mar 2006 Posts: 44

Good question

Although I know that if I should get really sick or somthing bad should happen to me that requires long term medical attention my job at the school in Japan will be gone and I would come back to Canada and declare residancy right away. You're a Canadian, once you come back and say "hey guys I'm back" you are back to being a full fledged Canadian.

Might get a bit sketchy if you try to receive medical attention for somthing minor if you come back to visit. Then again, you can opt not to go to the doc if its minor.

I don't have any personal experience with this so I'm just posting what I THINK would be possible. However, it would be nice for sombody more knowledgable to clear this one up

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

This topic has been discussed on Daves. A lot.

Here are some links to previous thread discussions on Canadian residency.

http://www.eslcafe.com/forums/job/viewtopic.php?t=21985

http://www.eslcafe.com/forums/job/viewtopic.php?t=10686

http://www.eslcafe.com/forums/job/viewtopic.php?t=23316

http://www.eslcafe.com/forums/job/viewtopic.php?t=25585

Smile

Jazz1975 · Joined: 14 Feb 2006 Posts: 301 Location: Zama, Kanagawa

Thanks, Jim.

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

If you come back to Canada as a visitor and are a non-resident, you are like a tourist. No medical plan and if you do buy health insurance ahead of time (recommended) then you are only covered for emergencies. I have done this 3 times already and I bought insurance through BCAA before I visited (not cheap). When you do return, there is a 3 month waiting eriod before your medical kicks in (the calendar month you arrive and 2 more months). Yes, you are a resident right away, but you don't get any medical right away.

Dominique · Joined: 26 Aug 2004 Posts: 141 Location: Juso, Osaka

I'm coming back but I didn't cancel my OHIP.
I did declare myself a non resident though.
Did that automatically cut my OHIP?
and if so, How do i get it back when I come back?

Do I have to send them a letter?

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

Tottori-Dood · Joined: 27 Mar 2006 Posts: 44

From what I understand if you tell Revenue Canada you are a non-res and if you were to come back to Canada (say on vacation) and use your health card then you would become a resident pretty much right away.

Of course this would require a government audit on you. Most likely it would slip between the cracks. Although if RC were to get line that you did use medical coverage and you were declared a non res...... well you would owe a hell of a lot of money to revenue Canada - ie: pay for the medical coverage it would be a lot less then paying the back taxes (unless of course you get seriously ill in which case you would probably stay in Canada).

I talked to my accountant about this exact thing so it is valid information. You are supposed to relinquish your health care coverage but practically speaking you do not really have too. Revenue Canada assumes that if you are declaring non residency status that you will seek medical coverage in the country you are in. They also take into account that as a Canadian citizan you are entitled to health care and hence if you do come back and take up residency you will gain your health care back. Again, if you use it when you come back and they somehow find out you are big time screwed in terms of taxes. You will have to pay Canadian tax + it will be a PAIN to get back the Japanese tax if in fact you can.

sorry for spelling and grammer mistakes, its 4 am and I'm pulling an all nighter studying for an insurance exam.

Jazz1975 · Joined: 14 Feb 2006 Posts: 301 Location: Zama, Kanagawa

What if you just "forgot" to declare non-residency?

Tottori-Dood · Joined: 27 Mar 2006 Posts: 44

My brother did this when he left to Europe. He is a lawyer there and makes a substantial amount of money.

Basically what he did was "forgot" as you put it and when tax time came around he wrote (got his accountant to write) that he is a non-resident. Thing is, he is not coming back to Canada. I would not suggest lying to Revenue Canada but in terms of "forgetting" its not a big deal. The only real plus in filling out NR73 (application of non residency) is that you wont have to tell revenue Canada next april that you are a non resident.

If, however, you are planning to "forget" totally and take up residency in Canada a year from now then you could potentially get big time ScReWed if RC audits you. Will Revenue Canada audit you? chances are no.... but it would seriously suck if they did. Also "forgetting" could be percieved as tax evasion which is a criminal offence. Would you be prosicuted for it? Highly doubt it for the amounts of money we are talking about....... but hey you never know so I would suggest fileing form NR73 either way. It's a slim risk but a stupid one if you ask me. There is nothing to gain from not declaring NR status if you in fact plan on becoming a NR.