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jamiekarin
Joined: 11 Apr 2007
Location: Bucheon, Gyeonggi-Do
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 Posted: Fri Apr 25, 2008 5:48 am Post subject: Hand's in my pocket |
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| Hey, I'm leaving soon back to Canada. What is the best way to not get taxed? I've already sent 6 million, and will be either sending another 7 million or bringing it over in cash. I applied for non residency but got denied, I have only been here 1 year. Will I get taxed on my earnings at the boarder or later down the road? I really don't want to lose like $3000 |
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laogaiguk
Joined: 06 Dec 2005
Location: somewhere in Korea
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| Posted: Fri Apr 25, 2008 5:52 am Post subject: Re: Hand's in my pocket |
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| jamiekarin wrote: |
| Hey, I'm leaving soon back to Canada. What is the best way to not get taxed? I've already sent 6 million, and will be either sending another 7 million or bringing it over in cash. I applied for non residency but got denied, I have only been here 1 year. Will I get taxed on my earnings at the boarder or later down the road? I really don't want to lose like $3000 |
If they denied it, you will almost definitely be taxed unless you forgot to tell them about something or they made a mistake. It's as simple as that. You won't get taxed at the border, but when you fill out your income tax papers for next year you will have to declare it. |
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smedini
Joined: 02 Apr 2008
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| Posted: Fri Apr 25, 2008 5:54 am Post subject: |
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I don't know how it works, but you're not likely taxed at the border. I assume you have to declare the money when you do your taxes next year (unless you're coming back this week  )
Can I ask you a potentially personal question, though? Why were you refused non-residency status?
~smedini |
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Return Jones
Joined: 06 Feb 2004
Location: I will see you in far-off places
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| Posted: Fri Apr 25, 2008 6:02 am Post subject: |
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This is my nightmare, except I'll have 7 years of savings when I head home later this year.
In your situation, perhaps look at maxing RRSP contributions as one way to avoid/defer taxation. |
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jamiekarin
Joined: 11 Apr 2007
Location: Bucheon, Gyeonggi-Do
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| Posted: Fri Apr 25, 2008 6:03 am Post subject: |
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| Hey, I don't know why, my girlfriend and I both applied, and got denial letters at first, but it was because we didn't fill it out properly. So we learned how to fill it out sent them back and she got hers accepted, and I haven't received anything. I have tried to call the Government and find out my status, but you know how our lovely bureaucracy works, can't ever get anyone on the line. My girlfriend and I filled ours out the exact same and everything?? |
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Underwaterbob
Joined: 08 Jan 2005
Location: In Cognito
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| Posted: Fri Apr 25, 2008 6:13 am Post subject: |
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| Denied non-residency? I went back for a few months after two years here and I had to pay for my medical check-up for my new visa to come back to Korea. They damn well better not expect me to pay back taxes if I'm denied the very thing my taxes are supposed to be paying for. |
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smedini
Joined: 02 Apr 2008
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| Posted: Fri Apr 25, 2008 6:15 am Post subject: |
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| Return Jones wrote: |
This is my nightmare, except I'll have 7 years of savings when I head home later this year.
In your situation, perhaps look at maxing RRSP contributions as one way to avoid/defer taxation. |
Seven years of savings? Does that mean you've been away for seven years? You're Canadian? Surely you'd be accepted as a non-resident after seven years away?! Have you applied?
~smedini |
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smedini
Joined: 02 Apr 2008
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| Posted: Fri Apr 25, 2008 6:19 am Post subject: |
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| jamiekarin wrote: |
| Hey, I don't know why, my girlfriend and I both applied, and got denial letters at first, but it was because we didn't fill it out properly. So we learned how to fill it out sent them back and she got hers accepted, and I haven't received anything. I have tried to call the Government and find out my status, but you know how our lovely bureaucracy works, can't ever get anyone on the line. My girlfriend and I filled ours out the exact same and everything?? |
So you don't know for sure that you haven't been given non-residency status?
~smedini |
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jamiekarin
Joined: 11 Apr 2007
Location: Bucheon, Gyeonggi-Do
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| Posted: Fri Apr 25, 2008 6:27 am Post subject: |
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No, I don't know for sure. I am assuming I have been denied. Or else they would have sent something letting me know like my girlfriend. There is an off chance I have been granted it. Does anyone approximately know how much I would have to pay in Canadian taxes for 1 year in korea, 2.1 salary?
I have heard of people just saying that they traveled for a year and getting away without paying taxes. Did I shoot myself in the foot for using that excuse by applying for non residency? |
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khyber
Joined: 16 Jan 2003
Location: Compunction Junction
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| Posted: Fri Apr 25, 2008 6:28 am Post subject: |
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1) Filing for non-residency. That form is just for asking an opinion. The answer you get from THAT form is in NO WAY legally binding. You need only prove that you have limited contacts with Canada.
If you were gone for 7 years and didn't have things like property/ other major ties, they prolly won't go after you.
Non-residency status (as it was explained to me) is not something that is "GRANTED" when you fill out that form. It's something that has to OFFICIALLY be proven.
I got in touch with an international accountant (I think it was through galbijjim) and he told me, if I remember:
File your taxes up until the day you leave.
Do everything in your power to cut as many ties to Canada as you can before you leave (property of ANY type; lines of credit; licenses; health care etc..)
Then file your taxes from the date you re-entered Canada.
It may be worth a phone call to a professional to help you solve the problem though. I certainly wouldn't go by anything I've read on a forum on the internet since everyone's experience and background is SO different and the whole rubric the govt uses seems unnecessary and arbitrary. |
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Return Jones
Joined: 06 Feb 2004
Location: I will see you in far-off places
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| Posted: Fri Apr 25, 2008 6:29 am Post subject: |
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| smedini wrote: |
| Return Jones wrote: |
This is my nightmare, except I'll have 7 years of savings when I head home later this year.
In your situation, perhaps look at maxing RRSP contributions as one way to avoid/defer taxation. |
Seven years of savings? Does that mean you've been away for seven years? You're Canadian? Surely you'd be accepted as a non-resident after seven years away?! Have you applied?
~smedini |
No, I haven't applied and I haven't filed a tax return the whole time either. The amount of time away from Canada is not related to residency status. Used to be that way, but now it no longer applies.
The advice I was given was not to file the non-residence form unless explicitly requested by Revenue Canada. Some tax accountants equate filing the NR73 form voluntarily as "asking for trouble". When I return to Canada, my plan is simply to file with $0 taxable Canadian income for all the years I was away. This is totally true and accurate. Hopefully they'll see it that way too! |
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Return Jones
Joined: 06 Feb 2004
Location: I will see you in far-off places
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| Posted: Fri Apr 25, 2008 6:32 am Post subject: |
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| Looks like Khyber echoes the same advice I received! Good luck all! |
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peppermint
Joined: 13 May 2003
Location: traversing the minefields of caddishness.
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| Posted: Fri Apr 25, 2008 6:45 am Post subject: |
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| jamiekarin wrote: |
No, I don't know for sure. I am assuming I have been denied. Or else they would have sent something letting me know like my girlfriend. There is an off chance I have been granted it. Does anyone approximately know how much I would have to pay in Canadian taxes for 1 year in korea, 2.1 salary?
I have heard of people just saying that they traveled for a year and getting away without paying taxes. Did I shoot myself in the foot for using that excuse by applying for non residency? |
I work for CRA (nothing to do with non residency though) and if you were earning that in Canada, you'd probably pay in about 4 to 5000 over the year in taxes, and get at least a few hundred of it back. Take that as your worst case scenario. Any medical expenses, interest on student loans, and tuition from previous years can be used as credits too. submit receipts and write them in on the schedules.
What you'd pay in will vary depending on which province you're from. If you've got a specific question, send me a pm and I'll try to answer. |
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smedini
Joined: 02 Apr 2008
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| Posted: Fri Apr 25, 2008 6:45 am Post subject: |
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| khyber wrote: |
1) Filing for non-residency. That form is just for asking an opinion. The answer you get from THAT form is in NO WAY legally binding. You need only prove that you have limited contacts with Canada.
If you were gone for 7 years and didn't have things like property/ other major ties, they prolly won't go after you.
Non-residency status (as it was explained to me) is not something that is "GRANTED" when you fill out that form. It's something that has to OFFICIALLY be proven.
I got in touch with an international accountant (I think it was through galbijjim) and he told me, if I remember:
File your taxes up until the day you leave.
Do everything in your power to cut as many ties to Canada as you can before you leave (property of ANY type; lines of credit; licenses; health care etc..)
Then file your taxes from the date you re-entered Canada.
It may be worth a phone call to a professional to help you solve the problem though. I certainly wouldn't go by anything I've read on a forum on the internet since everyone's experience and background is SO different and the whole rubric the govt uses seems unnecessary and arbitrary. |
Hi again...
Sorry Khyber, but you have been horribly misinformed! I do agree wtih you telling the poster to contact a professional, but I've gone through this twice and am about to do it for a third time and I can say there are some mistakes in your post.
1. The form is not just asking an opinion. You're right, it's not granted just by filling out the form but the form is what the Canadian government uses to decide. If you don't fill out the form, they don't decide...simple as that.
2. They PROBABLY won't go after you?? Yes, they will...if you're not declared a non-resident by filling out that form and being accepted, you have to pay tax on every interenational dollar you earn minus any taxes you've already paid to the country you live in IF that country has a tax treaty with Canada...if not, you'll pay double taxes. Korea and Canada do have a tax treaty.
3. You CAN have property in Canada and still not pay taxes. If you rent that property out to a third party with an arm's length agreement (ie. to a person you know or don't know but with a real lease) the government won't include that as a significant tie to the country.
4. File your taxes until you leave and then from the day you return? Either you're not Canadian or the accountant you talked to isnt'. The Canadian government wants to know exactly what you've earned for each and every day of your life UNLESS you've been declared a non-resident, which takes us back to my first point.
5. The system isn't arbitrary...yes, it's all done on a case-by-case basis but the underlying question remains...how many ties did you keep with Canada while you were away. If you have a home that you rented and a bank account the mortgage can come out of but no health care (which you have to give up when you leave anyway which is why one poster out there had to pay for his medical), no dependents staying behind, your spouse/significant other is with you, etc., those all weigh heavily...the government doesn't know that if you don't fill out the form and let them know.
Again, I've done this twice (and own property) and am about to do it for a third time. The first time I had been out of the country for 15 months already before I'd applied and was home for a vacation when I did. No biggie. It's barely a hassle and saves loads of time and money at the end of the line.
~smedini |
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jamiekarin
Joined: 11 Apr 2007
Location: Bucheon, Gyeonggi-Do
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| Posted: Fri Apr 25, 2008 7:05 am Post subject: |
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| If I do find out that I was denied non residency, can I still apply again? It is retroactive right? Like if my girlfriend and I handed in the exact same forms, shouldn't we both have been granted it? |
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