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Willy_In_Japan · Joined: 20 Jul 2004 Posts: 329

[quote]

I moved to Japan Sept.1 and could claim residency in Canada only up to that date. I never paid any taxes for work in Japan (final 4 months). My personal deduction (about $7,000?) was reduced by 1/3 as well. canada revenue had no problem giving me non-residency for those 4 months either.[/quote

Really?

I feel rooked. I took my tax return to H&R block, and they are so called 'professionals'.......the lady called Revenue Canada (CCRC) and apparently verified her work. I was deemed a resident for the entire year because I was in Canada a certain amount of days she said, even though I was now a 'non resident'....then again, I left on October 25th, so maybe you were in Canada longer. It cost me an extra 1000 dollars in tax.

And, they denied a GST refund, because I was a 'non resident' even though I had been in Canada for 10 months and had to pay tax on my Japanese income. Mad

]

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

Willy, I was in Canada until Sept. 1st, so less than you. I also did not get a GST refund for the remaining 4 months of the year (deservedly though). However, my wife still received maternity benefits (we had a baby) for a couple more months as that is not based on residency.

You did get shafted.

Willy_In_Japan · Joined: 20 Jul 2004 Posts: 329

Right, that was a typo. I mean, you were in Canada less time than me.

I was not given credit for any of the year regarding GST. They just said I didnt qualify because I was a 'non resident'......for any of it.....

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

Willy_In_Japan · Joined: 20 Jul 2004 Posts: 329

I think it has something to do with the way the GST credit 'works' ......it is based on last years income. So, as of Dec 31st, I was a non resident, so, I couldnt claim the GST for the year 2002 which is the year I left. Although I DID pay tax on my Japanese income for November and December 2002, because I was a resident for 10 months and passed some arbitrary day limit that made me a resident for the whole tax year. At the time, since I didn't get my GST credit, and had to pay an extra 1000 dollars that year, it kind of struck me as a 'whatever favours Revenue Canada" is the rule.

That's why I am a little leary when I read that they say if you come back you 'won't necessarily' be taxed. My thinking is "ya right".

I had my taxes done by H&R Block professionally that year, and I was assured these were 'the rules', and they claimed they double checked with the government. Maybe you got away with one, or maybe I got rooked, Im not sure. I'm just determined to not get hit with more Canadian taxes on my Japanese income from January 2003 onward.

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

You're right Willy, there is nothing we can do about it. To get back to the post at hand, as a general rule to be a non-resident:

Live away from Canada at least 2 years (can still go back and visit though).
Have no more than 6 ties to Canada. Sever everything that is not absolutely necessary.

Just because the gov't declares you a non-resident does not mean they won't change their mind later.

Willy_In_Japan · Joined: 20 Jul 2004 Posts: 329

Ive actually filed an appeal with Revenue Canada and asked them to reassess my tax return. Ive told them that I was a non resident as of Oct 25th of 2002 so I shouldnt have been taxed on income I earned after that. Ill let you know what they say about my appeal.

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

Good for you Willy. Please let me know how it goes.

kittykelly · Joined: 09 Nov 2004 Posts: 21 Location: Toronto, ON Canada

I just want to know if I have this right. If you are a non-resident you are still a citizen, correct? I am planning to go to Japan next year and this topic has informed of some things that I didn't even think about. Now I know that once I get accepted by a company I should apply to be a non-resident asap after that so that I don't get ripped off by the gov't come tax time. My only concern is that when I do come back to Canada, whenever that may be, to continue my education (master's etc) I will run into problems because I was a non-resident. Does anyone have any insight on this?

thanx
Naomi

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

kittykelly · Joined: 09 Nov 2004 Posts: 21 Location: Toronto, ON Canada

Thank you Gordon:) That makes me feel much more at ease.

Naomi

Willy_In_Japan · Joined: 20 Jul 2004 Posts: 329

Well, as people might remember who read this thread,.......I cam to Japan in October of 2002 and in April of 2003, had HR Block do my Canadian income tax.

They assured me that they 'checked it out' and that because I had been a resident of Canada for more than (I forget the exact number) something like 280 days, I was considered a resident for tax purposes for the ENTIRE year and that included 'world wide income'. I thought at the time I was getting screwed.......but I took their word for it.

Well, I recently complained about it online to Revenue Canada and the reviewed my taxes. I told them that I was a non resident as of October 26th 2002 and therefore my Japanse income shouldnt have been included. It seemed to match what I read on the site. It seems that Revenue Canada agrees, and I got a close to 1500 dollar refund cheque sent to my fathers house. So, finally justice. I am now going to lodge a complaint with HR Block and demand a full refund.

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

Good for you Willy. I am glad you got what you deserved. 1500 big ones, way to go.

Mike L. · Joined: 28 Feb 2003 Posts: 519

Stellar! I've always said that Rev. Can is not without reason!

You simply have to work the system! Conradulations!