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misterbrownpants
Joined: 04 Apr 2004 Posts: 70
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Posted: Wed Jan 16, 2008 9:02 am Post subject: Working/living in a foreign country - paying Canadian Taxes |
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Hi all
Well it has come that time of year again - tax season!!
I am new to this as previously i had someone look after my taxes back home = but now i am responsible for it..
does anyone have any suggestions about how i can tackle this?
i am living in uruguay - have been for 3 years - do i still need to pay canadian taxes? what if my salary was under the table? and not reported? i dont have anything to claim do i? if i pay taxes am i eligible for canadian benefits? like baby bonus? or other things? can i pay them online? is there an online form that i can submit?
well thanks so much!
any info would be great!
jillian |
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danielita

Joined: 06 Mar 2006 Posts: 281 Location: SLP
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Posted: Wed Jan 16, 2008 12:11 pm Post subject: |
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Unless you have declared yourself a non resident, you are supposed to file income tax. However, if you have paid income tax in your country of work, you can get a credit for that but they want proof you paid. It's a HUGE pain in the rear. If all the money was made under the table, I would just say forget the headache, but if/when you return to Canada, you should probably be prepared to explain how you survived so long without making any money. You can pay tax online if you have a bank account in Canada, then it's just a regular bill payment done through online banking. As for filing, it can also be done electronically, but unfortunately I don't know how because I also have someone who does this for me.
Good luck...
D |
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ls650

Joined: 10 May 2003 Posts: 3484 Location: British Columbia
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Posted: Thu Jan 17, 2008 2:02 pm Post subject: |
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Take a look on the internet for something called an 'NR73' form. It's a lengthy form from Revenue Canada or whatever they're called now. The form is NOT legally-binding, but gives you an idea of what the process is to declare yourself a non-resident.
They have a checklist of criteria, and if you meet several of the criteria you fail to be a non-resident. Do you own property in Canada, do you have medical coverage active in Canada, do you have bank accounts or substantial savings in Canada, etc?
I sent a letter to Revenue Canada by registered mail, telling them that I was living in Mexico, that I was a non-resident, and that I did not own Canadian property, etc. They never gave me a hassle about it, and I taught in Mexico for three years without hearing from them again.
Now that I'm back in Canada, it will be interesting to see if the gov't tries to shake me down for past years when I file my tax return in March... |
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Vanica
Joined: 31 Aug 2006 Posts: 368 Location: North Carolina
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Posted: Thu Jan 17, 2008 2:41 pm Post subject: |
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If your salary is too low to pay taxes, would it behoove you tto file every year and keep an address in Canada to continue to receive provincial benefits, such as keeping your health insurance current? Also are retirement benefits tied to residency? |
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misterbrownpants
Joined: 04 Apr 2004 Posts: 70
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Posted: Thu Jan 17, 2008 6:01 pm Post subject: too low |
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well my salary is too low to claim taxes.. plus i am already taxed down here.. i don't have an address in canada other than my mothers and my health insurance expired back in 2005 after my 6 months abroad...
i have no ties to canada other than my family...and friends but i dont spend much time there (because its too expensive to travel!!!)soooo i guess i will just write them a letter and have a lawyer down here sign it? |
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jwbhomer

Joined: 14 Dec 2003 Posts: 876 Location: CANADA
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Posted: Thu Jan 17, 2008 9:40 pm Post subject: Re: too low |
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misterbrownpants wrote: |
well my salary is too low to claim taxes.. plus i am already taxed down here.. i don't have an address in canada other than my mothers and my health insurance expired back in 2005 after my 6 months abroad...
i have no ties to canada other than my family...and friends but i dont spend much time there (because its too expensive to travel!!!)soooo i guess i will just write them a letter and have a lawyer down here sign it? |
It's not quite that simple, I'm afraid. You may be a non-resident of Canada in fact but still deemed a resident according to Canadian tax law. It depends on a number of things, including but not only your intention to return to Canada.
Go to http://www.cra-arc.gc.ca/E/pbg/tf/nr73/README.html and follow the link to a questionnaire -- the NR73 form mentioned by ls650 -- which you can submit to the Canada Revenue Agency for a determination as to whether you are or are not a resident.
Of course you don't have to do this, but if, one day, you return to the Great White North and start working and filing your tax return, you're going to have a lot of explaining to do about why you didn't file in previous years. |
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