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amcnutt
Joined: 22 Mar 2010
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 Posted: Fri May 18, 2012 5:25 pm Post subject: Canadian Income tax question for teachers in Korea |
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I just came home to Canada and I was in Korea between 2010-2012 for 18 months teaching. I am in the middle of starting my 2010 income tax returns (I graduated in 2010 and then moved to Korea in the fall). I was wondering if we have to pay income tax even though we are out of the country?
I have actually been trying to find this out for a few weeks now, and I've heard many conflicting responses. One Canadian friend told me she doesn't. I found a website that said that people still need to pay income tax even if they are out of the country. I'm so confused! Can anyone help me on this?
ALSO: If we do, how does that even work? We don't get t4 slips or anything like that over in Korea. I got typed out monthly payment statements but those aren't legit-looking documents to base taxes on...... |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri May 18, 2012 6:13 pm Post subject: |
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Fill in the 2010 forms.
On the front page there is a place for "departed from Canada".
Pay the taxes due on the 2010 T4s up until your departure date.
No filing for 2011. You were non-resident (registered alien in another country and paid taxes in Korea). If requested you may need to fill in an NR73 (determination of non-resident status) for those 18 months.
File for 2012 if you have Canadian taxable income for 2012 based on your T4s. If not then there is no worry till 2013.
If anyone (officially from the CRA) says otherwise, appeal it. You will win in the end.
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wings
Joined: 09 Nov 2006
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| Posted: Sun May 20, 2012 8:36 pm Post subject: |
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You have to pay taxes in Canada (minus what you already paid in Korea) unless you are a non-resident. It is not a really clear cut process, but as long as you didn't cash any of those checks the government sends out, or use your provincial health care plan for those 18 months then you should be fine following what ttompatz said. You will also have to wait 3 months (in some provinces) to have your provincial health care kick back in.
I've had 2 friends return from Korea and having to pay quite a bit of money to the Canadian government because they had too many ties in Canada to be considered non-residents. One had kept her car in her name while lending it to her brother, and another had visited the doctor on a trip to Canada and also cashed more than 1 of those checks.
When I left Canada I cancelled my OHIP just to be sure and had my family return all those juicy checks to the government. I also buy health insurance every time I go to Canada for a visit.
Fill out the application like ttompatz said and it should be fine. |
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jst
Joined: 14 Feb 2010
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| Posted: Sun May 20, 2012 10:54 pm Post subject: |
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| wings wrote: |
You have to pay taxes in Canada (minus what you already paid in Korea) unless you are a non-resident. It is not a really clear cut process, but as long as you didn't cash any of those checks the government sends out, or use your provincial health care plan for those 18 months then you should be fine following what ttompatz said. You will also have to wait 3 months (in some provinces) to have your provincial health care kick back in.
I've had 2 friends return from Korea and having to pay quite a bit of money to the Canadian government because they had too many ties in Canada to be considered non-residents. One had kept her car in her name while lending it to her brother, and another had visited the doctor on a trip to Canada and also cashed more than 1 of those checks.
When I left Canada I cancelled my OHIP just to be sure and had my family return all those juicy checks to the government. I also buy health insurance every time I go to Canada for a visit.
Fill out the application like ttompatz said and it should be fine. |
When do you find out if you owe the Canadian government money?
Does renewing a health card (but not actually using it) and/or rewning a passport count as someone being a resident? |
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12ax7
Joined: 07 Nov 2009
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| Posted: Mon May 21, 2012 1:49 am Post subject: |
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| jst wrote: |
| wings wrote: |
You have to pay taxes in Canada (minus what you already paid in Korea) unless you are a non-resident. It is not a really clear cut process, but as long as you didn't cash any of those checks the government sends out, or use your provincial health care plan for those 18 months then you should be fine following what ttompatz said. You will also have to wait 3 months (in some provinces) to have your provincial health care kick back in.
I've had 2 friends return from Korea and having to pay quite a bit of money to the Canadian government because they had too many ties in Canada to be considered non-residents. One had kept her car in her name while lending it to her brother, and another had visited the doctor on a trip to Canada and also cashed more than 1 of those checks.
When I left Canada I cancelled my OHIP just to be sure and had my family return all those juicy checks to the government. I also buy health insurance every time I go to Canada for a visit.
Fill out the application like ttompatz said and it should be fine. |
When do you find out if you owe the Canadian government money?
Does renewing a health card (but not actually using it) and/or rewning a passport count as someone being a resident? |
A passport documents your citizenship, not your resident status (my kid had a Canadian passport before he had even set foot in the country). Your health insurance card, however...I'm a non-resident, and as such I cannot have one. So... |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Mon May 21, 2012 2:14 am Post subject: |
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The whole "too many ties" thing is so subjective.
All it takes is a bureaucrat having a bad day, and you get dinged with tens of thousands in back taxes.
Such badly written laws are a complete joke, but that's what happens when you let the Liberal Party run a country.
And then the above mentioned bureaucrat will get over-time pay when he has to show up in tax court to defend his arbitrary decision.
A win-win for everyone but the person who was living overseas for a couple years. |
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12ax7
Joined: 07 Nov 2009
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| Posted: Mon May 21, 2012 5:58 am Post subject: |
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| Wildbore wrote: |
The whole "too many ties" thing is so subjective.
All it takes is a bureaucrat having a bad day, and you get dinged with tens of thousands in back taxes.
Such badly written laws are a complete joke, but that's what happens when you let the Liberal Party run a country.
And then the above mentioned bureaucrat will get over-time pay when he has to show up in tax court to defend his arbitrary decision.
A win-win for everyone but the person who was living overseas for a couple years. |
Can't do worse than Harper. |
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