Korean Job Discussion Forums

[sadiebear]

It's almost tax season again in Canada and hubby only worked a yr ago from Jan.1,2008 to Jan.23, 2008 and I myself is a stay at home mom (no income at all). Jan 28, 2008, we left for good and not planning to go back to Canada till hubby retires working from abroad. My question is, should we even bother to file our final tax return for 2008 income in Canada and declare on the tax form that we left Canada in Jan.28' 08? If we don't bother then how would the cra know that we became non residents in Canada a yr ago? We don't have any 'Canadian ties' so we're class as a 'non residents in Canada' based on my understanding.
-Thank you.

[teachergirltoo]

Apparently there are two choices: you can either fill out the government form that you can get from a website and send it in and let them determine your status, or you can just disappear so to speak. It is pretty much split as to how Canadians handle the situation.

[D.D.]

I split 17 years ago and nothing has ever been said to me. No letters come to my parents about taxes. The bank never mentions anything about them either.

[marlow]

http://forums.eslcafe.com/korea/viewtopic.php?t=1698&postdays=0&postorder=asc&start=0

[Janny]

I've been in Korea 6 years now. I did work in Canada for a few months back in 2006, and that year I DID file a tax return, since I received T4s. But other than that, I have done no tax returns for my years working in Korea. I did ask a tax attorney about it a while back, they said that the government is unlikely to bother you about it, as long as you
a) have no property ties in Canada;
b) don't garner loans from the govt in any way;
c) cancel your health insurance

He also recommended that I cancel my bank accounts, but I haven't done that. The biggest issue is whether you are a financial drain, in any way, to Canadian social safety net (insurance, health care, social services, taxable income, RRSPs, pension payments). If not, you're OK.

Declaring non-residency makes it a bit of a pain to return to Canada and start working right away. Plus, Canada and Korea have a reciprocity agreement regarding income tax, so that's good too.

I'm no expert, this is my shaky understanding on the subject. However, I am a bit scared that in a couple years, after having returned to Canada and filed another return, I'll be hit with a HUGE tax bill. Scary. But if that happens to people, I'm sure we woulda heard about it by now. I've never heard of it happening.

[egrog1717]

Someone has a post about 2 weeks ago saying that the CRA was looking for a wack of cash after they got home... Don't remember the specifics but it has happened... Maybe someone remembers better than I do?

[khyber]

When I returned, my accountant did my tax. He said we'd have to claim the income from our bank accounts as income.

It's all about severing your ties. Property is the BIG one. The fewer govt. issued docs the better (let your driver's license expire if possible; health care; etc...). A bank account is usually okay.

As for your sitch: I would just keep any proof for in country income (if you had none, no problem). DEFINITELY keep your ticket stubs.

[some waygug-in]

When I first did it, back in 2000, I just filled out my tax form as a non- resident. Then I had returned to Canada to work for 6 months. They wrote me back saying that I would be considered a resident for the 6 months I was in Canada and a non-resident after that. So I paid my taxes on my Canadian income. That was my last income tax form I ever filled out, and I've never gotten any letters or anything from the gov.

I do worry what will happen when I go back to Canada though. I have read some pretty scary stories about people who've gotten dinged heavily when they return and the rules set out by the tax office are in no wise clear!

I don't have a driver's permit or property, but I do have a bank account and a credit card.

Good Luck.

[okokok]

From gaijinpot.com