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humanuspneumos
Joined: 08 Jun 2003
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 Posted: Mon Jun 27, 2005 12:31 pm Post subject: Canadians and Tax--- fill out your non-residency forms. |
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I'm from Alberta. Filled out the non-residency forms-- and more forms, and more forms, and phoned, and phoned for the off and on part of my life of 7 years teaching overseas. Thought I might be whipped but just kept phoning/filing/filling out forms as honestly and accurately as I could....
I cut many of the primary "ties" to Canada even down to selling my microwave.. so, that really helps. Cut your ties.
Thanks,
Kam VanHereweghe
Last edited by humanuspneumos on Fri Apr 10, 2009 9:38 pm; edited 3 times in total |
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Scott in HK
Joined: 15 Jan 2003
Location: now in Incheon..haven't changed my name yet
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| Posted: Mon Jun 27, 2005 3:14 pm Post subject: |
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I never really understand how you can keep your medical insurance after you leave the country. Isn't one of the rules of provincial health care that you have to be a resident of the province to receive benefits. If you keep your medical insurance, you are basically saying that you still live in XXX province and therefore in Canada.
Every time I have left Canada, I have given up my health care. It is a bit of a pain when you get back but it seems to me that it is a definite tie to Canada.
Finally, I always chuckle when they say that a passport is a tie to Canada...how the heck can you become a non-resident if you don't have a passport unless they think every non-resident is simply going South. But even a border crossing is getting harder...I am not sure because I haven't crossed the American border for 5 years...but don't they want a passport now too.... |
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pegpig
Joined: 10 May 2005
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| Posted: Mon Jun 27, 2005 7:50 pm Post subject: Re: Canadians listen-up --- TAX warning/question |
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| humanuspneumos wrote: |
I'm from Alberta. Filled out the non-residency forms. A letter of rejection came back for my time overseas being 67% of 7 years. One of the questions they focussed on in this rejection is-- "Are you subject to income tax in that country on your world income?"
DOES ANYONE KNOW IF KOREANS ARE SUBJECT TO WORLD INCOME?
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67% of 7 years? I don't understand. Do you have to be abroad for 7 years. Maybe things have changed in the last 4 years. I applied during my 2nd year abroad and they sent me a nice little letter saying I was deemed non-resident.  Have to make sure I hang onto that. Could save me 10s of thousands of dollars.
If you paid tax in Korea or wherever when you were there than that part of the rejection could be appealed, if there are appeals for this sort of thing. Don't know if Thailand has a tax treaty with Canada. Probably easy to look up tho.
One other thing. Just because you THINK you paid taxes in Korea does not mean that you - or more specifically your boss - did. When my wife and I applied for her permanent residency we got a p/o from a Korean tax office (don't know which one - that was the wife) we were shocked to see that only 1 out of my 4 Korean employers had faithfully remitted the taxes that they were withholding. (Actually one was not withholding taxes, but I knew that.) That's half. One I wasn't surprised with, but the other had been a pretty good boss and seemed to be on the up and up. They had half a dozen or so foreigners. Surprise!
When I applied, I gifted my car to my dad. I had a driver's licence that I let lapse. The same with my medical insurance. In BC you actually have to pay for it. If you don't pay for it, you don't have it. In MB, you don't have to pay, so I don't know what happens with it. I moved from BC to MB a week before coming to Korea, so I don't know what my status on that would have been. Passport?! Give me a break. We're not giving up citizenship here.
If you're living in Canada now, and are applying after the fact, that may also have a bearing on their decision. |
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No L
Joined: 17 May 2004
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| Posted: Mon Jun 27, 2005 11:18 pm Post subject: |
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I think it's pretty unreasonble to expect to keep your provincial medical insurance, but not pay taxes. The medicare system is paid with taxes and if you're not chipping in, why should you benefit?
On the other hand, how the hell are you not supposed renew your passport with changing citizenships? That seems like a pretty reasonable tie and you probably wouldn't be filling out the form if you didn't have that one.
Can you drive in Canada with a Korean driver's license? I have one, but I keep letting my MB license lapse and then renew it when I go home on vacation. |
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paperbag princess
Joined: 07 Mar 2004
Location: veggie hell
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| Posted: Tue Jun 28, 2005 1:39 am Post subject: |
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does anyone know if student loans tie us to canada?
this is what the gov.gc.ca site says:
(a) personal property in Canada (such as furniture, clothing, automobiles and recreational vehicles),
(b) social ties with Canada (such as memberships in Canadian recreational and religious organizations),
(c) economic ties with Canada (such as employment with a Canadian employer and active involvement in a Canadian business, and Canadian bank accounts, retirement savings plans, credit cards, and securities accounts),
(d) landed immigrant status or appropriate work permits in Canada,
(e) hospitalization and medical insurance coverage from a province or territory of Canada,
(f) a driver's license from a province or territory of Canada,
(g) a vehicle registered in a province or territory of Canada,
(h) a seasonal dwelling place in Canada or a leased dwelling place referred to in �� 6,
(i) a Canadian passport, and
(j) memberships in Canadian unions or professional organizations. |
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Grotto
Joined: 21 Mar 2004
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| Posted: Tue Jun 28, 2005 2:07 am Post subject: |
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when dealing with Canada revenue it is always best to lie.
I have told them I have no ties to Canada. A lie.
I have my credit card and would never give it up. Visa is multinational if they want to argue that one...regardless of what country you get it in.
I have my drivers license but I dont tell them that. they dont need to know.
Of course I have my passport..duh
Everything else I have in Canada is in storage at a relatives place. But I would never tell them that. |
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Real Reality
Joined: 10 Jan 2003
Location: Seoul
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| Posted: Tue Jun 28, 2005 2:41 am Post subject: Re: Canadians listen-up --- TAX warning/question |
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| pegpig wrote: |
| One other thing. Just because you THINK you paid taxes in Korea does not mean that you - or more specifically your boss - did. When my wife and I applied for her permanent residency we got a p/o from a Korean tax office (don't know which one - that was the wife) we were shocked to see that only 1 out of my 4 Korean employers had faithfully remitted the taxes that they were withholding. (Actually one was not withholding taxes, but I knew that.) That's half. One I wasn't surprised with, but the other had been a pretty good boss and seemed to be on the up and up. They had half a dozen or so foreigners. Surprise! |
78 Percent of Koreans Consider Corruption Level Serious
Donga.com (June 17, 2005)
http://english.donga.com/srv/service.php3?biid=2005061709768
Income Tax to Be Levied on Bribes
by Jung Sung-ki, Korea Times (April 22, 2005)
http://times.hankooki.com/lpage/nation/200504/kt2005042217230511990.htm
Bribery Is Natural and Works, Teacher Claims
Chosun Ilbo (March 31, 2005)
http://english.chosun.com/w21data/html/news/200503/200503310021.html
Ex-pats Describe Korea's Culture of Corruption
by Kim Hong-jin, Chosun Ilbo (December 16, 2004)
http://english.chosun.com/w21data/html/news/200412/200412160027.html
Rotten to the Core?
Chosun Ilbo (October 9, 2003)
http://english.chosun.com/w21data/html/news/200310/200310080034.html |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Tue Jun 28, 2005 4:20 am Post subject: |
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| A passport is fine. That is nothing to consider. Another poster has posted what they are really looking for. |
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pegpig
Joined: 10 May 2005
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| Posted: Tue Jun 28, 2005 4:23 am Post subject: |
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| paperbag princess wrote: |
does anyone know if student loans tie us to canada?
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When I filled out the form 4 years ago i did say that had a bank account, but I also gave them the reason that I had to pay off my student loan. So, they knew about both, but I was still granted NR status.
| mindmetoo wrote: |
| I've been NR since 2000. The last Canadian tax return I filed was for the 1999 tax year. In 5 years I've had semi active bank accounts, an RRSP, and semi active Canadian credit cards. I've never actually filed an NR form but in 5 years Rev Can has never asked me to file, despite knowing I was living abroad. |
Saying you are NR and having RevCan say that are not the same thing. I also think that if people wait until they go back after a few years that they'll have a more difficult time convincing RC. That may be the OP's situation/problem. When I filed, I told them I didn't know if/when I was going to return, which was true.
Never lie.  Just stretch the truth to the furthest limit. If the op can appeal, I would say it might be a good idea to stretch it as much as possible. The tax savings could be substantial. |
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The Lemon
Joined: 11 Jan 2003
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| Posted: Tue Jun 28, 2005 4:56 am Post subject: Re: Canadians listen-up --- TAX warning/question |
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| humanuspneumos wrote: |
| had a driver's license, car, medical insurance, and passport (all considered ties to Canada). So-- beware when you go back home--- don't just assume you're a non-resident or will get that coveted status. |
If I still owned a car in Canada and was still carrying provincial health insurance, I wouldn't make that assumption.
That "66 percent of seven years" claim is odd. There is no magic amount of time abroad needed to turn yourself into a non-resident - not seven, or four, or two years (anymore). The "when you go back home" part indicates that the ties were never broken. They care about intent to return (to live, not quickie visits of relatives).
I've said it a bazillion times, so once more won't hurt - Canadians should read the actual CCRA rules and see if they're square with them. It's up to each individual to decide whether it's worth it to "file for NR status" (in reality, request their opinion on your personal situation). For me, I decided it was not worth it a long time ago. I'm secure that I'd cleared myself with them according to their rules.
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| Renewing your drivers license, plates, etc would be another red flag. Basically, anything that says you intend to come back to Canada Real Soon Now can affect things. |
Right.
The exception, however, is that they'll have some leeway on some of the secondary ties if you can demonstrate that they are necessary to your life as a resident abroad and in no way indicate a tie to living in Canada. For example, I live in a country where the local drivers license for foreigners piggybacks on my Canadian one. Thus, I need a valid Canadian license to drive here.
The secondaries are not automatic no-nos - they say they take the whole primaries+secondaries situation into consideration. |
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pegpig
Joined: 10 May 2005
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| Posted: Tue Jun 28, 2005 5:08 am Post subject: Re: Canadians listen-up --- TAX warning/question |
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| The Lemon wrote: |
It's up to each individual to decide whether it's worth it to "file for NR status" (in reality, request their opinion on your personal situation). For me, I decided it was not worth it a long time ago. I'm secure that I'd cleared myself with them according to their rules. |
I can't think of a situation why it would not be advantageous to have NR status. You apply and you're either given NR status or you're not.
Lemon, you're last 2 sentences don't quite make sense to me. If you've "cleared" yourself with them according to their rules why wouldn't you just file to be on the safe side. You never know. Plus the rules can always change, and perhaps not in your favour. |
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Captain Corea
Joined: 28 Feb 2005
Location: Seoul
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| Posted: Tue Jun 28, 2005 5:14 am Post subject: |
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Um... why not just say NOTHING???
Seriously, why say anything unless asked? |
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pegpig
Joined: 10 May 2005
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| Posted: Tue Jun 28, 2005 5:30 am Post subject: |
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I still don't get it. Who cares if you're rejected? Try. I would hate to arrive back in Canada after 3,5, 7, 10 or whatever years and be told that I owe RC $20,000 or some crazy-ass student-loan sounding number. I wouldn't want to go through that again.
Say nothing maybe works over a year or two, but I'd think that if you don't file for a number of years and then suddenly file that they might do an audit or partial audit. I've been partially audited or whatever they call it on two occasions. If numbers aren't neat and consistent the RC computers send up red flags and the the next thing you know you're being audited. I don't like being probed, unless she's darn cute. |
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Captain Corea
Joined: 28 Feb 2005
Location: Seoul
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| Posted: Tue Jun 28, 2005 6:10 am Post subject: |
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| Quote: |
| Who cares if you're rejected? |
Wel,, if you apply, tel lthem you are making money in korea, the nthey reject you. You wil then owe them taxes. Korea and Canada have a tax treay that states that if You pay (say) 5% in korea but should be paying 20% in Canada, the korean government will reimburse you your %5 and the Canadain Gov will charge you the 20% they feel you owe.
So, if you are rejected and are on their radar, you're sunk. |
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pegpig
Joined: 10 May 2005
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| Posted: Tue Jun 28, 2005 6:50 am Post subject: |
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If you don't file for a few years and then start filing again, don't you think that you would find yourself on their radar also? Chances are they'll start checkingand asking. Why didn't you file? You assumed you were tax exempt because you were abroad? They won't buy it.
I like being in the position that I am. I know when I go back to Canada I won't have to remit additional taxes in Canada, nor should I. I have received zero Canadian benefits since I left 5 years ago, other than what one might ordinarily get during a vacation. I had two 2-month Canadian vacations. Not knowing my tax situation would make me a little anxious.
I'd like to hear from someone who has been abroad for the last 5+ years after not filing for a few years and being abroad. Are you out there? |
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