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some waygug-in
Joined: 25 Jan 2003
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 Posted: Tue Nov 03, 2009 3:36 pm Post subject: |
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You can argue all you want, it's when you go back to Canada that you start to have problems.
The point is, it's all speculation until it happens to you! They can decide whatever they want, however they want, whenever they want and there is very little anyone can do about it. That's the wonder of Canadian beaurocracy.
They most likely WILL consider you a resident and demand back taxes and they will cite your continued use of Canadian health care membership as evidence.
If you are planning on going back to Canada, you may as well just continue being a resident, but if not...
Health care is decent and fairly cheap in Korea, why even bother?
Last edited by some waygug-in on Tue Nov 03, 2009 3:39 pm; edited 1 time in total |
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Chamchiman
Joined: 24 Apr 2006
Location: Digging the Grave
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| Posted: Tue Nov 03, 2009 3:39 pm Post subject: |
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| some waygug-in wrote: |
You can argue all you want, it's when you go back to Canada that you start to have problems.
The point is, it's all speculation until it happens to you! They can decide whatever they want, however they want, whenever they want and there is very little anyone can do about it.
They most likely WILL consider you a resident and demand back taxes and they will cite your continued use of Canadian health care membership as evidence.
If you are planning on going back to Canada, you may as well just continue being a resident, but if not...
Health care is decent and fairly cheap in Korea, why even bother? |
I can't be bothered to read the whole thread, but I will say two things.
About health care: I think the main problem with cancelling your health care in Canada is the lag time in getting it started up again. That could leave you without coverage for several months if you don't time it right.
About taxes: Why not just ask a tax accountant? I did, and I have peace of mind. |
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some waygug-in
Joined: 25 Jan 2003
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| Posted: Tue Nov 03, 2009 3:43 pm Post subject: |
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I did. I have a friend who was an accountant in Canada but who is now teaching ESL in the land of K.
This was his advice: Close all Canadian bank accounts, cancel all Canadian credit cards and give them your Korean address to contact you.
I still have my Can bank account and credit card, but I use them less and less and am now using my Korean accounts as my main bank. |
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Big Mac
Joined: 17 Sep 2005
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| Posted: Tue Nov 03, 2009 4:06 pm Post subject: |
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| some waygug-in wrote: |
You can argue all you want, it's when you go back to Canada that you start to have problems.
The point is, it's all speculation until it happens to you! They can decide whatever they want, however they want, whenever they want and there is very little anyone can do about it. That's the wonder of Canadian beaurocracy.
They most likely WILL consider you a resident and demand back taxes and they will cite your continued use of Canadian health care membership as evidence.
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That's why you should still file tax returns every year, even if the amount is 0. If you wait until you return to Canada and then file for several years at once then that might tip them off. Just cover your ass and it will be less likely that they will look at you. |
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Chamchiman
Joined: 24 Apr 2006
Location: Digging the Grave
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| Posted: Tue Nov 03, 2009 4:06 pm Post subject: |
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| some waygug-in wrote: |
I did. I have a friend who was an accountant in Canada but who is now teaching ESL in the land of K.
This was his advice: Close all Canadian bank accounts, cancel all Canadian credit cards and give them your Korean address to contact you.
I still have my Can bank account and credit card, but I use them less and less and am now using my Korean accounts as my main bank. |
I think I sent you a PM a few months back about some of these issues, so I'm glad to hear you've got things sorted out. (My above post was intended for whoever was asking about taxes and health care coverage, not for you.) |
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youtuber
Joined: 13 Sep 2009
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| Posted: Tue Nov 03, 2009 4:49 pm Post subject: |
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| some waygug-in wrote: |
You can argue all you want, it's when you go back to Canada that you start to have problems.
The point is, it's all speculation until it happens to you! They can decide whatever they want, however they want, whenever they want and there is very little anyone can do about it. That's the wonder of Canadian beaurocracy.
They most likely WILL consider you a resident and demand back taxes and they will cite your continued use of Canadian health care membership as evidence.
If you are planning on going back to Canada, you may as well just continue being a resident, but if not...
Health care is decent and fairly cheap in Korea, why even bother? |
If I was married to a Korean, then yes I would cancel my Canadian health care. But on an E2 visa, there is no way. An E2 visa, by definition, is a temporary worker.
Korean health care is most certainly NOT cheap. For the little things ya it costs a few bucks. But personally, I have spent thousands in Korea.
Again, you gotta play the odds. Cancel most Canadian ties (except health care) and establish Korean ones. Like I said, that chances of getting audited are much smaller than the chances of getting sick. You are more likely to lose money by spending on health in Korea than you are of getting audited by CRA.
And because you have Korean health insurance in addition to Canadian Health insurance, well that would be more in your favor for non-residency in Canada.
Plan for the worst, hope for the best. |
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some waygug-in
Joined: 25 Jan 2003
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| Posted: Tue Nov 03, 2009 4:59 pm Post subject: |
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I don't know what you spent your money on in Korea, but I have Korean health coverage as part of my job. I haven't been back to Canada in over 6 years. I've spent very little on health care, even when I didn't have health coverage (hagwan days) it was very cheap.
But I've never had anything major done here, so I understand your concern.
Do what you think is right for you.
I've had my share of run-ins with the Canadian gov't, I don't want any more. They can just pull numbers out of their arse, claim you owe them and force you to pay. They don't have to prove anything.
Last edited by some waygug-in on Tue Nov 03, 2009 6:41 pm; edited 1 time in total |
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Draz
Joined: 27 Jun 2007
Location: Land of Morning Clam
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| Posted: Tue Nov 03, 2009 6:10 pm Post subject: |
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| youtuber wrote: |
| Like I said, that chances of getting audited are much smaller than the chances of getting sick. You are more likely to lose money by spending on health in Korea than you are of getting audited by CRA. |
I doubt that very much. Do you have any evidence? A serious illness seems much LESS likely than getting audited. In my experience, the Canadian government is in fact watching you to see if you try to rip them off. I called and told them not to send GST cheques. They sent them anyway, then months later they flipped out over sending me GST cheques that I NEVER CASHED. I sent them back, and they lost them, and really got on my ass about returning cheques that I had already returned. And that was only a couple hundred bucks, not 35% of my wages for every year I'm in Korea.
Health is more important than money, but there are much cheaper ways of getting full health coverage in Korea than claiming residency in Canada and hoping they "just don't notice" that you didn't pay taxes for a couple years. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Tue Nov 03, 2009 7:24 pm Post subject: |
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| Draz wrote: |
| youtuber wrote: |
| Like I said, that chances of getting audited are much smaller than the chances of getting sick. You are more likely to lose money by spending on health in Korea than you are of getting audited by CRA. |
I doubt that very much. Do you have any evidence? A serious illness seems much LESS likely than getting audited. In my experience, the Canadian government is in fact watching you to see if you try to rip them off. I called and told them not to send GST cheques. They sent them anyway, then months later they flipped out over sending me GST cheques that I NEVER CASHED. I sent them back, and they lost them, and really got on my ass about returning cheques that I had already returned. And that was only a couple hundred bucks, not 35% of my wages for every year I'm in Korea.
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The exact same thing happened to me. They may be watching you, but they're not very good about maintaining evidence.
Then again like another poster already said...they don't really need it. When it's the government vs you, who do you think is going to win? |
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youtuber
Joined: 13 Sep 2009
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| Posted: Tue Nov 03, 2009 9:55 pm Post subject: |
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| Draz wrote: |
Health is more important than money, but there are much cheaper ways of getting full health coverage in Korea than claiming residency in Canada and hoping they "just don't notice" that you didn't pay taxes for a couple years. |
What are the cheaper ways of getting comprehensive health coverage on an E2 visa?
Last edited by youtuber on Tue Nov 03, 2009 10:02 pm; edited 1 time in total |
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youtuber
Joined: 13 Sep 2009
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| Posted: Tue Nov 03, 2009 9:58 pm Post subject: |
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| some waygug-in wrote: |
I don't know what you spent your money on in Korea, but I have Korean health coverage as part of my job. I haven't been back to Canada in over 6 years. I've spent very little on health care, even when I didn't have health coverage (hagwan days) it was very cheap.
But I've never had anything major done here, so I understand your concern.
Do what you think is right for you.
I've had my share of run-ins with the Canadian gov't, I don't want any more. They can just pull numbers out of their arse, claim you owe them and force you to pay. They don't have to prove anything. |
Yeah we all have the basic Korean coverage. Some day (I'm not wishing you get sick or anything) you will learn that it is very insufficient. Haven't you noticed that most Koreans have extra insurance in addition to the NHI? Why do you think that is?
How can they force you to pay taxes when they don't know your Korean income? They just make up a number for your income? Do you think the Korean and Canadian governments share tax information on ESL teachers? I have a hard time finding someone who speaks English at Korean immi for chrissakes. I think you are being a bit unreasonable.
Last edited by youtuber on Tue Nov 03, 2009 10:22 pm; edited 2 times in total |
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youtuber
Joined: 13 Sep 2009
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| Posted: Tue Nov 03, 2009 10:18 pm Post subject: |
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Look guys, I think the best advice for a newb is to keep his health insurance. He might not even like living in Korea.
And although anecdotal, I don't know of anyone who has been audited by CRA after teaching (or while) teaching English. But I do know of many teachers that have been in the hospital in Korea.
And I have shown the government's law in their own words:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html
It does not say that having health insurance makes you resident of Canada for tax purposes.
Show me some legislation other than anecdotal stories! Canada is a country of laws and I can use that law to protect myself. Where does paranoia get you?
Bottom line, for a new teacher to Korea, keep your health insurance. After being in Korea for a few years, you can decide what is right for you.
As you can see OP, tons of opinions. |
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The Lemon
Joined: 11 Jan 2003
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| Posted: Wed Nov 04, 2009 4:01 am Post subject: |
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As Youtuber pointed out, retaining the health insurance is a secondary rather than primary tie. However, it seems morally like cashing a GST cheque or collecting EI - why should you enjoy a major benefit of Canadian residency if you say you're not a resident? I'm not arguing from the Tax Act, but from common sense. Besides, in the world of low-cost expatriate health insurance, there's no need to.
What I did was let mine lapse. I didn't cancel it, but when it ran out I didn't renew it. I couldn't renew it - I was gone. And I made sure that I had private coverage when I visited in Canada while still holding the card. When I return to Canada even now, nine years later, I buy coverage for myself and my family. Not a big deal.
Private expat health coverage is available if you're working in Korea, instead of/to supplement what you're getting from your job. I never had a problem with my employer-supplied insurance in Korea, and I worked for both a low-rent hogwan and a private university.
I don't see any reason to renew Canadian health insurance unless you do indeed plan to return to Canada after a year or two, in which case it's false to claim that you are a non-resident who does not "intend" to return. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Wed Nov 04, 2009 6:29 am Post subject: |
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| youtuber wrote: |
[
How can they force you to pay taxes when they don't know your Korean income? They just make up a number for your income? Do you think the Korean and Canadian governments share tax information on ESL teachers?
Korea and Canada have a tax treaty. If the tax guys in Canada wanted to, I'm sure they could find someone who speaks English well enough and who is a position of authority to find out. All he'd have to do is speak to Immigration who'd give him your location.
I have a hard time finding someone who speaks English at Korean immi for chrissakes. I think you are being a bit unreasonable. |
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some waygug-in
Joined: 25 Jan 2003
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| Posted: Wed Nov 04, 2009 3:53 pm Post subject: |
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They don't need any records. I've read of cases where they just guesstimate the yearly earnings of an average ESL teacher and go from there. The onus then falls on you to prove them wrong.
I've also read of a case (not a teacher) of a business owner in BC who was overcharged on his income tax by a million dollars, took it to court, proved his case and the gov't refused to repay him the money.
http://www.cbc.ca/canada/british-columbia/story/2009/04/22/bc-taxmistake.html
They can do anything they want..... and they do. |
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