Korean Job Discussion Forums

ninjai · Joined: 25 Jul 2006

Currently, overseas in Korea teaching English. Is it wise to declare non-resident to leave paper trails for the Cdn gov't? I would like to know so I can min. my taxes..either non resident (and travel the world ...wink wink) or say I am earning income overseas??? Suggestions?

peppermint · Posted: Tue Feb 27, 2007 3:44 am Post subject:

I think the conventional wisdom is don't- just let the years you're over there be your "lost years". That's fine, unless you ever want to get a job within the federal governement at any level.

chronicpride · Joined: 16 Jan 2003

Novernae · Joined: 02 Mar 2005

peppermint · Posted: Tue Feb 27, 2007 3:03 pm Post subject:

One thing to clarify there, I mailed in the nr74 for 2002- my first year in Korea, not long ago. Got a polite letter back, requesting that I fill out nr-73 first- still awaiting determination of residency status- I will report back when I get info

cruisemonkey · Posted: Tue Feb 27, 2007 3:41 pm Post subject:

I filled out the NR73 E and was determined to be a non-resident of Canada. However, this determination by the Canada Revenue Agency does not mean I am exempt from all Canadian taxes.

Quote -

"As a non-resident, you may be subject to a non-resident withholding tax on interest, dividend, rental, and pension income received from a Canadian source. The Canadian payer is responsible for withholding 25% of the gross amount of these types of income. However, if the country where you live has a tax treaty with Canada, the provisions of that agreement may reduce the rate of withholding tax.

This letter is not a waiver or a reduction of any withholding taxes that apply to income earned or received from a source in Canada. In order to obtain such a waiver or reduction in withholding tax, you must apply to the appropriate tax services office.

If you participated in the Home Buyer's Plan before leaving Canada, you must repay the ballance of the funds you withdrew under the plan by the earlier of:
- the date you file your income tax return for the year you left; or
- 60 days after you become a non-resident."

mindmetoo · Joined: 02 Feb 2004

Never declared NR. Never had Rev Can ask me to file in the last 6 years.

cruisemonkey · Posted: Tue Feb 27, 2007 4:05 pm Post subject:

Canada Revenue Agency will never ask you to file.

If they owe you money they don't care. If they determine you owe them, they'll just take your bank account(s) etc.

jinju · Joined: 22 Jan 2006

Dont bother. Any decision you get is not legally binding so they can easily just go back on their word and deem you a resident. Simply look at what the requirements are and make sure you dont have any primary or secondary ties. Dont put yourself on their radar.

Novernae · Joined: 02 Mar 2005

ninjai · Joined: 25 Jul 2006

well i know i will file my taxes for the year of 2006 since i was employed that year and i do have some rsp, gics, and stocks....question is the income i am earning in korea i do not want them to know. when i come back i would say i left canada to travel and did not earn "sufficient" income. anyone in similar situation??

Captain Corea · Joined: 28 Feb 2005 Location: Seoul

Tell them nothing. I've filed for years ofbeing over here declaing no income - because I earned no income in Canada.

FYI, do not cash any GST checks or the like - you'll get dinged.

The Lemon · Joined: 11 Jan 2003

Mea · Joined: 24 Mar 2006

I don't plan on living in Canada for at least 5 more years, but I'm not filling out the NR form. It just doesn't seem necessary since it's just an opinion.

I will file my taxes for 2006 though, and if I get money back should I be okay cashing the cheque? And next year should I simply stop filing taxes altogther?

I'm actually not that worried about it, but I just hope they don't come after me when I eventually do make it back to Canada!

[Just remembered I did not cancel my health card... must do that ASAP!]

Hanson · Joined: 20 Oct 2004