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OHIP and non-residenct status

 
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BRawk



Joined: 14 Oct 2007

PostPosted: Thu Sep 25, 2008 5:19 am    Post subject: OHIP and non-residenct status Reply with quote

I have recently heard it is necessary to cancel OHIP before you leave to be deemed a non-resident. I have been gone 4 years and will return eventually. I would like to be a non-resident. I din't cancel OHIP.

Am I screwed???

P>S> Knowledgable responses are most appreciated.
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polonius



Joined: 05 Jun 2004

PostPosted: Thu Sep 25, 2008 5:25 am    Post subject: Reply with quote

You can cancel OHIP anytime. I canceled it after 2 years in. The biggest pain in the arse for me was the fact that I kept getting GST checks for a year or 2, I had to pay that money back.

The only thing with OHIP is that it takes three months for it to kick back in once you get home.
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TheChickenLover



Joined: 17 Dec 2007
Location: The Chicken Coop

PostPosted: Thu Sep 25, 2008 5:30 am    Post subject: Reply with quote

If you were able to use OHIP, then you are liable for taxes regardless if you were using it or not. I had to cancel my OHIP before I came to Korea where they punched a hole through the card.

You will be dinged for 2 years taxes. Some may say that they'll never know, but your SIN # is in the system as having the OHIP card active and you'll need to explain how you survived for 2 years in Korea on a work visa.

If you get audited by Revenue Canada, you WILL be billed.

Chicken
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BRawk



Joined: 14 Oct 2007

PostPosted: Thu Sep 25, 2008 5:31 am    Post subject: Reply with quote

Thanks for the info.

If I cancel it now, will it still be difficult yo declare non-residency status for the 4 years I have been getting it?
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TheBulimicFatGuy



Joined: 03 Jan 2008

PostPosted: Thu Sep 25, 2008 6:20 am    Post subject: Reply with quote

What's an OHIP card? I'm in a panic now because all the documentation I've read on getting non-residency status didn't mention it; just "severing ties". Some ties are considered primary like owning property and some are considered secondary like having a bank account. Having a primary "tie" or more than one secondary "ties" can make one ineligible for non-residency status. What more needs to be done? I sure don't want to pay back-taxes on 2 years of pay in Korea.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Thu Sep 25, 2008 6:23 am    Post subject: Reply with quote

TheBulimicFatGuy wrote:
What's an OHIP card? I'm in a panic now because all the documentation I've read on getting non-residency status didn't mention it; just "severing ties". Some ties are considered primary like owning property and some are considered secondary like having a bank account. Having a primary "tie" or more than one secondary "ties" can make one ineligible for non-residency status. What more needs to be done? I sure don't want to pay back-taxes on 2 years of pay in Korea.


It is just one secondary tie. There is no worry if that was your only tie to Canada.
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peppermint



Joined: 13 May 2003
Location: traversing the minefields of caddishness.

PostPosted: Thu Sep 25, 2008 6:43 am    Post subject: Reply with quote

I dealt with MCP (the Newfoundland version of OHIP) and forgot to cancel my card. Was accepted as a non resident by CRA, and had to get a new card issued when I returned. Easy peasy.
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Tommy



Joined: 24 Aug 2005

PostPosted: Thu Sep 25, 2008 10:57 am    Post subject: Reply with quote

There so much that is unclear about declaring non-residency in Canada, and there is no easy way of finding out.

As far as I know from when I did my taxes last year, it's based on a two-tier system as ttpz mentioned. Basically, on the ties you have to back home:

- Primary: Major things like owning property
- Secondary: Smaller things like having a driver's licence, credit card, and OHIP card

When filing your taxes, there's a checkbox which pretty much leaves it up to you to decide.. or, if you're having trouble deciding, you can fill out a separate form and let the government help you decide.

I personally don't believe you need to cancel your OHIP, driver's licence, etc.. so long as they stay inactive, that's the important thing.
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stevie rotten



Joined: 31 Jan 2003

PostPosted: Thu Sep 25, 2008 3:10 pm    Post subject: Reply with quote

i'd advise to not declare non-residency. the declaration form is not mandatory and only flags you to get checked.
you should probably look to cut all primary ties and as many secondary ties (including OHIP. you can do that through the mail) as you can.
you probably won't get checked but even if you do you probably will be deemed a non-resident as long as you don't have any primary ties. there's no way to know for sure but i wouldn't lose too much sleep over it.
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Mr. BlackCat



Joined: 30 Nov 2005
Location: Insert witty remark HERE

PostPosted: Thu Sep 25, 2008 3:54 pm    Post subject: Reply with quote

I never cancelled my OHIP card (forgot). I hadn't been filing CDN income tax while I was over here but a year ago the government told me to file. I responded that I hadn't been living in Canada for several years. They said that was fine, but then took the opportunity to audit my previous 5 years and decided that I owed them money. Anyway, the point is that they accepted my non-residency pretty easily even though I still have an OHIP card. I guess they could go back on that if they felt so inclined, though. Considering this was the second time I had been audited in the last 5 years I wouldn't put it past them.

I'm all for paying taxes for the country you live in, but I can't help but wonder why they'd go after a guy barely out of University hovering around the poverty line twice in his 20s. I'm sure all those benevolent corportations are paying all that they owe, though. That's all I've got to say about that.
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enns



Joined: 02 May 2006

PostPosted: Thu Sep 25, 2008 7:36 pm    Post subject: Reply with quote

TheChickenLover wrote:
If you were able to use OHIP, then you are liable for taxes regardless if you were using it or not. I had to cancel my OHIP before I came to Korea where they punched a hole through the card.

You will be dinged for 2 years taxes. Some may say that they'll never know, but your SIN # is in the system as having the OHIP card active and you'll need to explain how you survived for 2 years in Korea on a work visa.

If you get audited by Revenue Canada, you WILL be billed.

Chicken


It is not as black and white as you say. Many, many people keep their OHIP and don't pay tax on their Korean income. It counts as a strike against you as a secondary tie, it alone will not sink you.

My question is, has anyone here canceled their OHIP while in Korea? Is that possible and/or recommended?
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fakeplastiktree



Joined: 15 Oct 2007
Location: Northeast Seoul

PostPosted: Sun Oct 19, 2008 7:31 pm    Post subject: Reply with quote

I haven't applied for non-residency yet but I'm planning on doing so soon. I didn't know OHIP needed to be separately cancelled. I thought once I'm successfully deemed a non-resident, they'd automatically cancel/suspend OHIP. Should I be cancelling OHIP first?

The problem I have with cancelling it is that I'm going to be going back to Canada for about six months next year and I want to keep my OHIP. If I don't cancel OHIP but apply for non-residency up to the date I return, will my OHIP still be valid when I get back?
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wings



Joined: 09 Nov 2006

PostPosted: Sun Oct 19, 2008 7:40 pm    Post subject: Reply with quote

Quote:
The problem I have with cancelling it is that I'm going to be going back to Canada for about six months next year and I want to keep my OHIP. If I don't cancel OHIP but apply for non-residency up to the date I return, will my OHIP still be valid when I get back?


Once you cancel your OHIP you have to be a tax paying resident in Ontario for 6 months before you are covered again, so you need to get private health coverage to cover you during that time.

If you declare non-residency (which I personally wouldn't) then I would assume your OHIP would be cancelled (you can't get health care if you aren't a resident.....). So you would not be covered for the 6 months that you were back in Canada. If it weren't automatically cancelled and you tried to use it in the 6 months that you were back you would be in for a nasty surprise, either with being denied free service, or with having to pay taxes for the time that you were out of the country.
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