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Mike L.
Joined: 28 Feb 2003
Posts: 519
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 Posted: Wed Oct 20, 2004 6:19 am Post subject: |
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I don't understand what your so down about! They laid out for you pretty clearly!
They're not going to change their minds! They're not lying to you! There is no 2 year standard: they told you so themselves!
You don't have to run away from anyone, let alone the Canadian Government!
You can just say your return was "unforseen." Though I's stretch it out a little more than 2 months try 5 or 6 as Gordon said!
In the meantime you can hope for steep dive in the Canadian dollar though I wouldn't count on it!
That should do it! :wink: |
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Gordon
Joined: 28 Jan 2003
Posts: 5309
Location: Japan
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| Posted: Wed Oct 20, 2004 6:31 am Post subject: |
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| Grace, go for a holiday...Thailand, Bali, Philippines, enjoy yourself. After Japan, you won't believe how far your money wil go. |
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Willy_In_Japan
Joined: 20 Jul 2004
Posts: 329
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| Posted: Wed Oct 20, 2004 11:34 am Post subject: |
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Read what she wrote.
Being out of the country for less than two years does "not necessarily" mean that you will be considered a resident for tax purposes, as ties are more important. Also, your intention to return to Canada at a specific date is a factor.
She did not say that there was no 'two year standard'. In fact, there IS a two year 'guideline' and it is a factor. As I posted, it is an internal policy and has no basis in law. Perhaps they are reluctant to state it as a 'rule' considering that. However, Revenue Canada is going to make a determination on her status when she goes back. I don't know about you, but I wouldn't want to have to pay Canadian level taxes on my earnings whilst in Japan. I am guessing that 'not necessarily' means 'probably but not in all cases'. I guess you can always go back, and cross your fingers that Revenue Canada doesn't rob you blind, but I wouldn't want to take that chance personally. I know people who have gone back before two years are up and had to pay taxes. I don't know anyone who has gone home before two years are up and didn't have to pay.
I'd like to hear from someone who went back before two years was up and deemed a 'non resident' during their absence, rather than listen to these people who say 'there is no two year standard'. |
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canuck
Joined: 11 May 2003
Posts: 1921
Location: Japan
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| Posted: Wed Oct 20, 2004 12:19 pm Post subject: |
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I kind of feel like a broken record. It's about ties to Canada. You're allowed 6, and it's pretty easy to get that. It's often an effort to get under 6 ties. The fact you are thinking about heading back to Canada is exactly why they have the rule in place, and it will look like that if you return and get audited. Not everyone gets audited either.
You only have to pay the difference of of the tax you already paid in Japan versus the amount you would have paid in Canada. Worst case senario isn't that bad. Just load up on an RRSP to defer the amount. Basically, you're hooped. |
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Mike L.
Joined: 28 Feb 2003
Posts: 519
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| Posted: Wed Oct 20, 2004 12:34 pm Post subject: |
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Willy In Japan wrote:
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| Revenue Canada is going to make a determination on her status when she goes back. |
Not really much of a determination to make. She''ll (Grace) be a returning as a "non-resident" since she'll have filled out the paperwork. Looks like she's planning it out fairly carefully from here on in.
Willy In Japan wrote:
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| I'd like to hear from someone who went back before two years was up and deemed a 'non resident' during their absence, rather than listen to these people who say 'there is no two year standard'. |
I'd like to hear from more people who've actually filled out the paperwork, talked to REV Can!
Have you?
As Grace stated, and anyone who's done their research knows, the most importanat factor is number of residential ties.
Quoting form secondary websites is not the best way to find out what current Rev Can non-resident taxation policy.
Read this site, call them up!
http://www.cra-arc.gc.ca/tax/nonresidents/individuals/nonres-e.html
If you know your paperwork and talk to your Rev. Can people, in your local tax office especially, there is no uncertainty.
You have to work the system! |
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Willy_In_Japan
Joined: 20 Jul 2004
Posts: 329
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| Posted: Wed Oct 20, 2004 1:00 pm Post subject: |
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Quote:
Revenue Canada is going to make a determination on her status when she goes back.
Not really much of a determination to make. She''ll (Grace) be a returning as a "non-resident" since she'll have filled out the paperwork. Looks like she's planning it out fairly carefully from here on in.
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And, they will say 'ah.....you came back before two years.....you filled out your form 2 months ago....we changed our minds.......' there is no reason they wont say that the situation has changed.
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I'd like to hear from more people who've actually filled out the paperwork, talked to REV Can!
Have you?
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Ya, I have talked to Revenue Canada and they did tell me that if I come back before two years are up, I can expect to pay taxes as a resident for the time I was out of the country. Also, the guy said that I could fill out the form to have them aware Im a non resident, but it wasn't absolutely necessary. My understanding at the time was that they would therefore be aware that I was living outside of the country and not viewed as on a temporary work assignment. It could be done for peace of mind that they wouldnt hit me with a tax bill. However, since I intended to be out of the country for more than two years, I havent bothered with the form. It isn't a legal binding agreement that they wont reverse their decision.
I think the main problem here is that unfortunately, Revenue Canada has a lot of leeway deciding who gets hit with taxes even if they are out of the country for a while. Americans have far simpler and straightforward and sesible rules. i think it is something like you pay no American taxes on foreign earnings below 80,000 dollars.
My Mom keeps telling me I was foolish to let my Ontario Drivers License expire, but I don't want something like that costing me a big tax bill. Taxes here are very low.....it is not just a few hundred bucks difference. |
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canuck
Joined: 11 May 2003
Posts: 1921
Location: Japan
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| Posted: Wed Oct 20, 2004 1:17 pm Post subject: |
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I've talked to Revenue Canada.
If you intend to renew your driver's licence, it counts as a tie. If you just let your driver's licence expire, you didn't intend to renew it. Good move.
If you don't have anything in writing about your residency status, there is no certainty. |
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Gordon
Joined: 28 Jan 2003
Posts: 5309
Location: Japan
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| Posted: Wed Oct 20, 2004 2:41 pm Post subject: |
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My B.C. DL expired this year. This summer I was back in Canada and called them about the renewal process. I don't want to have to re-take the test and lose all my safe driving. They told me that I did not have to renew since I have a valid Japanese DL. When I do decide to go back to Canada, I just show them my J-DL and then I can renew my license and not lose any safe driving discount. Best of both world. I lose a tie and I can still keep my status as a Cdn driver. Can't say what other provinces do though.
10 years ago I was deemed a non-resident when I taught in Korea. I returned after 17 months and never had to pay any taxes. I know things have become stricter now though. |
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mmmfood
Joined: 23 Aug 2004
Posts: 11
Location: Toronto at the moment
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| Posted: Wed Oct 20, 2004 2:45 pm Post subject: |
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Has anyone here NOT declared non-residency? I'm curious to know how much tax you really pay. I thought if you make under $35000Cdn/year, you are only paying 16% tax. The difference from Japan is about 4% right?
Also, can you file for non-residency after you have moved out of the country for more than 2 years and have the taxes retroactively given back to you? I'm guessing no coz the govn't are cheaparse ppl! |
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Gordon
Joined: 28 Jan 2003
Posts: 5309
Location: Japan
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| Posted: Wed Oct 20, 2004 2:48 pm Post subject: |
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| mmmfood wrote: |
Has anyone here NOT declared non-residency? I'm curious to know how much tax you really pay. I thought if you make under $35000Cdn/year, you are only paying 16% tax. The difference from Japan is about 4% right?
No, I pay about 5% now and would be in a 30-35% bracket at home.
Also, can you file for non-residency after you have moved out of the country for more than 2 years and have the taxes retroactively given back to you? I'm guessing no coz the govn't are cheaparse ppl! |
Have what paid back retroactively? The taxes from Japan or the taxes you didn't pay in Canada? |
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canuck
Joined: 11 May 2003
Posts: 1921
Location: Japan
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| Posted: Wed Oct 20, 2004 2:49 pm Post subject: |
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| Gordon wrote: |
| When I do decide to go back to Canada, I just show them my J-DL and then I can renew my license and not lose any safe driving discount. |
Wait a second...ICBC changed the rules or are changing them now as you speak. If you don't insure a car now, you start to lose your discount. So, if you haven't insured a vehicle for a while, say, "Good-bye" to that 40% discount you used to have. That's what I've been told. Pretty stupid, but ICBC has been accused of having a brain. |
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Gordon
Joined: 28 Jan 2003
Posts: 5309
Location: Japan
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| Posted: Wed Oct 20, 2004 2:57 pm Post subject: |
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| canuck wrote: |
| Gordon wrote: |
| When I do decide to go back to Canada, I just show them my J-DL and then I can renew my license and not lose any safe driving discount. |
Wait a second...ICBC changed the rules or are changing them now as you speak. If you don't insure a car now, you start to lose your discount. So, if you haven't insured a vehicle for a while, say, "Good-bye" to that 40% discount you used to have. That's what I've been told. Pretty stupid, but ICBC has been accused of having a brain. |
Really? That must be new. Do you know that for sure or is it a maybe? |
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mmmfood
Joined: 23 Aug 2004
Posts: 11
Location: Toronto at the moment
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| Posted: Wed Oct 20, 2004 5:23 pm Post subject: |
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Sorry hopefully I can clear up my question. I meant if you decided to pay taxes to Canada and after 1 year of living abroad you realized that you're not going back home for awhile, can you file for non residency starting from the day you left Canada and get back the taxes that you paid previously because you weren't in the country.
I hope that made sense....  |
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Gordon
Joined: 28 Jan 2003
Posts: 5309
Location: Japan
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| Posted: Thu Oct 21, 2004 9:34 am Post subject: |
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| mmmfood wrote: |
Sorry hopefully I can clear up my question. I meant if you decided to pay taxes to Canada and after 1 year of living abroad you realized that you're not going back home for awhile, can you file for non residency starting from the day you left Canada and get back the taxes that you paid previously because you weren't in the country.
I hope that made sense.... |
You wouldn't start to pay taxes in Canada until you went back, however you would have to pay taxes for the work in Canada. For example you work from Jan-July 2003 in Canada, and move to Japan, you will still have to file and pay the 6 months (jan-july) of taxes in Canada in 2004. |
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Willy_In_Japan
Joined: 20 Jul 2004
Posts: 329
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| Posted: Thu Oct 21, 2004 11:42 am Post subject: |
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| Quote: |
You wouldn't start to pay taxes in Canada until you went back, however you would have to pay taxes for the work in Canada. For example you work from Jan-July 2003 in Canada, and move to Japan, you will still have to file and pay the 6 months (jan-july) of taxes in Canada in 2004. |
When I came to Japan, I had to pay Canadian taxes on my Japanese income for the final two months of the year. I had lived in Canada for most of the year, therefore was deemed a resident of Canada for the duration of the year.
I believe that in this case, you would pay Canadian taxes for the WHOLE year on world wide income. ie......you would be considered a resident for the whole taxation year. I think the standard is something like 180 days in Canada and you are in for the whole tax year. That is why I intend to return to Canada in January when I return. |
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