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Skyblue
Joined: 02 Mar 2007
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Posted: Wed Oct 20, 2010 4:04 pm Post subject: |
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| youtuber wrote: |
| I would guess that as long as you have no significant ties, and not many loose ties, a Canadian bank account shouldn't be a problem. Ie no taxes. |
But do you actually report your income on the annual tax form? I didn't file taxes for about 5 years once. Nothing happened.
I'm worried about transferring large sums of cash to Canada, getting flagged by the bank, and then getting audited.
I'd rather park money offshore, but it seems like a pain, and just file no tax forms indefinitely rather than officially declaring non-residency (through filling out those forms).
I maintain a bank account and credit card there. That's all. But as you said, those are "loose ties." |
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youtuber
Joined: 13 Sep 2009
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Posted: Wed Oct 20, 2010 5:34 pm Post subject: |
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As I understand it, you are not required to hand in a tax return if you are a non-resident, which it sounds like you are. And getting an official declaration is not required. You are making a self-declaration of non-residency, which is allowed.
I am guessing that you still have health coverage in Canada as well. Another loose tie. Another strike against you. But still maintain that coverage.
Rather than transferring huge sums of money at once, just transfer a bit at a time. I believe that if you transfer over $10,000 USD in one year you will be flagged by the Koreans. Sorry, but I can't remember what the consequences are. Ask your Korean bank about this. Do a transfer every month or two. The Korean banks record how much money you transfer in your passport for a reason.
Now you should concentrate on developing as many ties as you can in Korea. Get Korean credit cards, gym memberships, bank accounts, ect ect. Photocopy your ARC. Get a Korean driver's license. Keep proof of all the ties you have established in Korea in case you ever need to defend yourself.
If you do all that, you should be ok. |
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PatrickGHBusan
Joined: 24 Jun 2008 Location: Busan (1997-2008) Canada 2008 -
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Posted: Thu Oct 21, 2010 1:25 pm Post subject: |
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Just to be clear, you cannot declare yourself a non-resident of Canada.
You can only request an evaluation of your situation from the government who will then determine your status based on the aforementioned ties.
By the way, just because you hear nothing from Revenue Canada, it does not mean nothing happens. They have 5 years to notify someone about being in default on their taxes.
If you want to be absolutely sure, you can fill out the proper forms for residency evaluation on the canadian government site. |
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youtuber
Joined: 13 Sep 2009
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Posted: Thu Oct 21, 2010 3:21 pm Post subject: |
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Well, I was told by CRA that you can make a self declaration.
And I think that filling out the forms costs money. And, they may say you are resident in Canada.
I think it is better to make a self declaration and keep quiet about it. No use making them aware of your situation. If they audit you later, then show them the proof. |
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Skyblue
Joined: 02 Mar 2007
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Posted: Thu Oct 21, 2010 6:29 pm Post subject: |
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| youtuber wrote: |
| And getting an official declaration is not required. You are making a self-declaration of non-residency, which is allowed.. |
To whom? Airport officials? The problem is that I haven't been back to Canada in 3 years. And I've only spent 10 days there in the past 8 years. So I don't know if they've been paying attention, but I'm certainly not "resident," except for the bank account, credit card, and never used health coverage.
I did file taxes three years ago, reporting zero income, and claiming a GST rebate, which I now think was a misstep. |
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giraffe
Joined: 07 Apr 2009
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Posted: Thu Oct 21, 2010 6:48 pm Post subject: |
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skyblue ,
chances are your health coverage has probably expired by now anyways. I used to have one of those old healthcards. Never went to doctors. One day i go to a walkin clinic and found out it expired some years ago. Unless your parents someone kept it going by applying for you. But the new cards expire every 5 years and you would need a new picture. SO im pretty sure your not covered right now..
And yeah applying for GST credit might have been a mistake...... |
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youtuber
Joined: 13 Sep 2009
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Posted: Thu Oct 21, 2010 10:06 pm Post subject: |
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Making a self declaration means you don't have to tell anybody. If CRA asks in an audit, then you tell.
Make sure you keep your Canadian health care coverage going. Despite it being a loose tie, you want to have it as a backup when the useless Korean healthcare system fails you.
And don't receive GST rebates. |
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PatrickGHBusan
Joined: 24 Jun 2008 Location: Busan (1997-2008) Canada 2008 -
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Posted: Fri Oct 22, 2010 2:50 am Post subject: |
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| youtuber wrote: |
^
Well, I was told by CRA that you can make a self declaration.
And I think that filling out the forms costs money. And, they may say you are resident in Canada.
I think it is better to make a self declaration and keep quiet about it. No use making them aware of your situation. If they audit you later, then show them the proof. |
Yes the self declaration is something you fill out and send to the government in order for them to determine your residency status.
You can also wait like youtube advised and odds are nothing will happen because this is not an important sum of money in the grander scheme of things.
Skyblue, the GST rebate was a mistake but its not critical. It can however lead to an audit if Rev Can determines that 0 revenue and a GST rebate request is odd.
What will happen if they declare you a resident at some point is that they can then claim income taxes on your Korean income commensurate to the taxation level that income would be in were you working in Canada. They then determine the difference between the taxes you already paid in Korea and deduct the split. Say in Korea your income tax is 4% but in Canada your income would put you in the 28% income tax bracket. They can then claim that 24% (approximation) difference as owed income taxes.
Again, you want to be ironclad sure: file the forms and have yourself declared a non-resident based on the few ties you do have. Once thats done, unless you create more ties to Canada, you are in the clear. |
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daeguowl
Joined: 06 Aug 2009 Location: Seoul
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Posted: Mon Oct 25, 2010 8:32 pm Post subject: |
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| Skyblue wrote: |
(And what is the difference between avoidance and evasion?) |
Tax avoidance is avoiding paying tax by using legal means such as claiming legitimate deductions.
Tax evasion is avoiding paying tax by using illegal means such as understating your income or claiming deductions to which you are not legally entitled. |
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