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JETS and Canadian taxes

 
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GreenCardigan



Joined: 05 Oct 2006
Posts: 50
Location: Japan

PostPosted: Mon Nov 06, 2006 5:45 am    Post subject: JETS and Canadian taxes Reply with quote

Hello to everyone on Dave�s ESL website. I�m a first-time poster and hope to become a regular contributor.

I have a question regarding Canadian taxes for other ESL teachers in Japan or Canadians who might know.

I came to Japan on the JET Programme last year and I�m in my second year now. From my understanding, Canadian JETs do not have to pay taxes on Japanese income, as they pay their taxes to the Japanese government. It did stress in one of those JET mailouts that the previous statement was only applicable for Canadian JETs who file their taxes. This leaves me wondering what the penalty is for not having filed my taxes before the April 31st deadline. Does anyone know what the penalty is for not having filed? Or even if there is one?

To add a little context, before I came to Japan I worked in Canada but I didn�t earn a lot of money. In fact, I�m probably in line for a rebate from the government.

Any comments, suggestions, or advice are appreciated. Thanks guys.

GreenCardigan,
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Gordon



Joined: 28 Jan 2003
Posts: 5309
Location: Japan

PostPosted: Mon Nov 06, 2006 5:50 am    Post subject: Reply with quote

If you are in for a rebate from last year's income in Canada, do your taxes. If they have to pay you, they don't care how long you take, the longer the better.
Have you looked into non-residency? Do a search about it here. Much to read. If you will be here in Japan for 2+ years, do the paperwork and become a non-resident.
Do a search on it and then come back to ask more questions.
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24601



Joined: 25 May 2006
Posts: 75

PostPosted: Tue Nov 07, 2006 12:47 am    Post subject: Reply with quote

Before you rush off to become a non-resident, be aware coming BACK to Canada and re-establishing residency and getting your health care and such set back up is a serious PITA. There are also advantadges to simply not letting the govt know you are working outside the country. Investigate all options.
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JimDunlop2



Joined: 31 Jan 2003
Posts: 2286
Location: Japan

PostPosted: Tue Nov 07, 2006 2:24 am    Post subject: Reply with quote

24601 wrote:
Before you rush off to become a non-resident, be aware coming BACK to Canada and re-establishing residency and getting your health care and such set back up is a serious PITA. There are also advantadges to simply not letting the govt know you are working outside the country. Investigate all options.


Yep. Exactly what Jean said. Non-residency is usually not a valid JET option as JET has a maximum limit of how long you stay employed. I know Gordon and I differ in opinion on this, but I know of people who have returned to Canada after having been deemed non-residents, but they were screwed in trying to pull the same stunt on their second sojourn outside of the country. I'd ask this question on Big Daikon or to some Canadian ex-JETS who've been there and done that. I'd say that most of the people on Dave's are not JET so we may not be the bext ones to ask.
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Gordon



Joined: 28 Jan 2003
Posts: 5309
Location: Japan

PostPosted: Tue Nov 07, 2006 7:11 am    Post subject: Reply with quote

I am currently on my second stint as a non-resident. Yes, becoming a non-rezz is no ball of fun, but it could save you thousands of dollars.
If I wasn't a non-rez, I would currently be owing the Cdn gov't about $60K in taxes.
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J.



Joined: 03 May 2003
Posts: 327

PostPosted: Wed Nov 08, 2006 3:29 am    Post subject: Becoming a "NON-REZ"? Reply with quote

Gordon, it's interesting that you have done this twice. Does that mean you have filled out the paperwork twice and what do you mean it was no fun? Any light you could shed would be helpful. I thought it wasn't necessary to actually do the paperwork as long as you filled all the requirements of a non-resident.

I will tell everyone that Canada immigration asks questions now such as "Are you a non-resident?" and "Do you pay taxes in Canada or Japan?" when you visit Canada. They even ask if you are visiting family. (One of the requirements of non-residency is that you don't have "too close" ties with immediate family, whatever that means.) Since they have computers in front of them I assume ( maybe I'm being paranoid) that they are recording the answers. In any case they have records of your visits. Just to make people aware that immigration may be recording information that could later be used to try to deny non-residency. Another problem I've heard about is that later they are allowed to reverse their decision, even if you fill out the paperwork, and qualify. Seems they have their cake and eat it too..big surprise. There sure are a lot of tricky rules about what you can and can't do.

Does anyone know if the application forms are available online so I could take a look at them?
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Gordon



Joined: 28 Jan 2003
Posts: 5309
Location: Japan

PostPosted: Wed Nov 08, 2006 3:45 am    Post subject: Re: Becoming a "NON-REZ"? Reply with quote

J. wrote:
Gordon, it's interesting that you have done this twice. Does that mean you have filled out the paperwork twice and what do you mean it was no fun? Any light you could shed would be helpful. I thought it wasn't necessary to actually do the paperwork as long as you filled all the requirements of a non-resident.

I will tell everyone that Canada immigration asks questions now such as "Are you a non-resident?" and "Do you pay taxes in Canada or Japan?" when you visit Canada. They even ask if you are visiting family. (One of the requirements of non-residency is that you don't have "too close" ties with immediate family, whatever that means.) Since they have computers in front of them I assume ( maybe I'm being paranoid) that they are recording the answers. In any case they have records of your visits. Just to make people aware that immigration may be recording information that could later be used to try to deny non-residency. Another problem I've heard about is that later they are allowed to reverse their decision, even if you fill out the paperwork, and qualify. Seems they have their cake and eat it too..big surprise. There sure are a lot of tricky rules about what you can and can't do.

Does anyone know if the application forms are available online so I could take a look at them?


I was a non-rez 12 years ago for 2 years, then returned to Canada for 5 years and have now been a non-rez again for the past 5 years.
I just pointed that out earlier because Jim was alluding to the point you can only be a non-rez once or else I read too much into that. I wouldn't recommend someone become a non-rez back and forth over the years or I believe CCRA would deny it from you.

Becoming a non rez is no fun. I mean that cutting one's ties can be quite difficult. These are all things that one may have to do: close bank accounts, cancel medical (a must), no driver's license or not renew it, no credit cards, sell your belongings, not touching your stocks or mutual funds, maybe selling your property, no storage locker. These are all ties and one has the option of cutting them or not. if you keep too many, they may deem you a resident. I filled in the paperwork to get an idea if I qualified or not (I did), but I believe you don't HAVE TO apply. I think it is a good idea. Yes, CCRA can reverse their decision, but i think they would only do that if you did not fulfill your end of the bargain about cutting your ties to Canada. However, this being Canada, anything can happen.

About visiting Canada... I called CCRA about that and they said no problem if you are going back to visit regularly, you are a tourist. That is what tourists do. If you are working, then of course, they will deem you a resident. If you have a wife and kids back in Canada, then you probably would be considered a resident. I think that is what is meant by too-close ties.

I recommend calling CCRA with specific questions, who ares if it is long distance. They have a web site and I think there is a non-rez form there. CCRA mailed one to me before I left.
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