Korean Job Discussion Forums

[McQwaid]

I'm hoping someone can finalize an ongoing debate my co-workers and I are having these days ...

Can Revenue Canada look inside people's bank accounts? I'm talking about simple savings accounts with Royal Bank or Toronto Dominion.

Can they see our account balances through some kind of special access or agreement they have with private banks?

Can they "freeze" your acct or remove money from this acct if they think you owe them tax money for some reason or another and they know your living abroad, so therefore, not paying them because your not worried about them? Can they touch your RRSP's in any way?

Do you have to declare your saving acct amounts when you return home and wish to file a return?

Sorry about all the questions. I did a search and spent quite awhile reading alot of useful info, but nothing that addressed these issues. I know alot of you guys out there know your sh*t when it comes to this stuff, so I just thought I'd ask.

Thanks for any help ....

[SpedEd]

I think I can help you with this question. Once upon a time (very recently, actually) I lived in Canada and was battling with creditors over what they can and can't do to recover debts owing. Along the way, I discovered that there are very few entities that have the right to access an individual's bank account info and funds in Canada. Unfortunately, Revenue Canada is *not* one of those entities. If they have reasonable motive to access (and possible freeze) your bank account, they can and will - but that's not to say that it is common practice.
To my knowledge, the CRA is unique in this way. The exeption would be, if say, you owed money on a credit card to TD Bank and also had a checking acccount with TD. TD could also access funds in your account to recoup the balance owing. If your problem is serious, I would recommend consulting with a tax attorney in Canada.

[Big Mac]

This is a very good question. I always suspected they did have this power.

That's why it's good to try to avoid them as much as possible by legitimate means. Apply for non-residency with the form at http://www.cra-arc.gc.ca/E/pbg/tf/nr73/README.html

If you're a non-resident you don't have to pay taxes in Canada on the money you make while you're in Korea. The catch is that you can only have three minor ties to Canada in order to qualify. One of them is your passport, another your driver's licence (which you probably don't want to give up). I had to close my bank accounts, cancel my credit card and a whole bunch of other stuff to qualify.

If you get that, who cares if Revenue Canada can see inside your bank account. And by the way, they're only going to look anyway if they have a good reason to. I highly doubt they've got minions at the tax office watching everything Canadians do with their bank accounts.

[pegpig]

[cruisemonkey]

Revenue Canada has the power under the Income Tax Act to inspect and sieze bank accounts - 231. In sections 231.1 to 231.7

Canada also has a tax treaty with ROK that allows investigation into anything you (as a Canadian citizen) do in K-land.

As a Canadian, I applied for, and was granted nonresidency status on the grounds I have only three ties to Canada: passport and two bank accounts.

Keep your nose clean... big brother is watching you.