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Rockawaybeach · Joined: 26 Feb 2003 Posts: 5 Location: Toronto

Hi, eh?

This message is meant to be both a question and a big heads up.

If you are a Canadian resident with a non-Canadian passport (for example, I am an American who calls Canada home, and I am about to work overseas) you need to know about Canada's new Permanent Resident card.

Check out: http://www.cic.gc.ca

If you're going to leave for Japan within 12 weeks, or if you're already there, you might encounter the same troubles I have.

Anyone else encountered this difficulty?

Further to this, if there are any Canadians out there who have some experience with taxes, I'm having a devil of a time figuring it all out. I've talked to an accountant and checked out the government site. It's hard to work out though and the folks I've talked to are no help.

When working in Japan, at an eikaiwa, are you considered a Japanese 'resident' according to the Canadian gov't?

Has anyone already fought their way through this red tape?

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

Canadian citizen (can't speak for your situation but may be similar)....

Canadians are required by law to declare and pay taxes on WORLDWIDE income.... Only 1 exception to this rule: declare non-residency status.

In order to do this, you must prove to the Canadian government that 1) you have not lived in Canada for 6 months +1 day consecutively in the year, and you do not intend on returning... Intent, by the way, is rather arbitrary and subject to the whims of the government, but in general they use a point system (just like when you are applying for permanent residence status in immigration issues)... The more ties you have to Canada (family, bank accounts, health care membership, property, real estate, etc.. etc..) the more points you have. And if you score enough points, the government says, "too bad, hoser! Yer payin' taxes, eh!"

Not being a citizen I suspect this may be different... However, the wisest idea is to find yourself a CPA that has experience with cases like this... That's exactly what I'm doing when next year's tax season rolls around...

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

I spoke to someone at Revenue Canada a few years ago about this issue.

They said that the non-residency would pretty much be defacto after a couple of years living abroad.

As long as you don't owe money they're not going to be looking for you.

It's still probably a good idea to fill out the forms out and make it offical though.

Especially if you're planning to invest your overseas earnings in Canada.

The same person said that bank accounts and investments in Canada would be taxed at the foreign investor rate of 25%.

Call your local tax office and ask someone there. I've never been able to get through to the international office in Ottawa.

If you're in Japan, paying taxes and have a visa here I doubt Revenue Canada would even be able to, or want to, tax you Question

Good luck with it!

Celeste · Posted: Fri May 30, 2003 2:29 am Post subject:

When I lived in Korea (from 1997-1999) I returned to Canada, and had an accountant do all of the non-resident forms etc. for me. If you don't have income in Canada (I was renting out my house) then you may be able to fill out the forms yourself. Here is a link for information:

http://www.ccra-adrc.gc.ca/E/pub/tg/t4058/t4058-01-e.html