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Canadian Taxes for expats
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Bbang!



Joined: 31 Oct 2004
Location: Seoul

PostPosted: Sun Jan 07, 2007 3:30 pm    Post subject: Reply with quote

The Canadian government can suck my left nut.
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Vissan



Joined: 18 Jan 2007

PostPosted: Sat Jan 20, 2007 5:02 am    Post subject: Reply with quote

The frustrating thing is that we all come to this thread expecting some sort of easy reasonable answer. "Will I have to pay income tax in canada on the money I make here?"
Answer "Of course not. That's absurd. You pay 3.3% here. That's it"
Or "Canada sucks and they'll come after you for taxes."

That's all any of use want. Some sort of actual answer. Unfortunately, there is no easy answer. Instead we get dozens of links to frustratingly long, complicated articles that make no sense to me whatsoever.
I have absolutely no idea if I will have to pay taxes when I go home. No idea.

But can someone whose been through it give me some advice?
I have no primary ties back home and my secondary ties are as follows:
a bank account (for student loan payments)
drivers lisence (i can say i kept it just incase i bought a car in korea)
ontario health insurance (didn't know i should have cancelled)
canada passport

In korea i have:
arc card
bank account
health insurance
working visa and employment (that counts as a 'secondary tie', right?)

I will have been here just over a year when i return home, but I'll make up some crazy story about how I intended to stay here for ever.

For anybody that's been through this before, do you think Canada would see me as a 'non resident'? Anybody ever go home with similar secondary ties in both countries? Did you have to pay taxes?

Also, I've been here 5 months at this point. Would canceling my Ontario health care now even help? Or is it to late so I may as well not even bother?
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The Lemon



Joined: 11 Jan 2003

PostPosted: Tue Jan 23, 2007 4:16 am    Post subject: Reply with quote

Though they no longer use set lengths of time abroad to determine non residency (it was once two years), they may look negatively on your short "just over a year" absence, I doubt anyone here could give a definitive, authoritative answer for your particular situation, as you're not a long-term expat (more like on a working holiday). It's asking a lot from this thread to expect such a determination. My personal case is clear-cut, as is many others. Yours is not. You might be a good case for "send in the form" to get the CCRA's opinion, or give them a call.

Or you could try flying under their radar, which while risky, isn't especially more risky than not reporting tips as a waiter in Perth or Ajax. It's not like your hogwan sends in T4 slips to the CCRA.
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Vissan



Joined: 18 Jan 2007

PostPosted: Tue Jan 23, 2007 5:36 pm    Post subject: Reply with quote

Lemon, thanks for the reply.

As you can probably tell, I'm just a bit frustrated. I'm the only canadian at the school I work at right now. When I ask about taxes to the other tachers, they look at me like I'm crazy. They don't believe that I will really have to pay taxes when I return to Canada. When I showed them this thread, they claimed that every person on this thread is mistaken. You get that? They find it that utterly absurd that I would have to pay Canadian taxes on the money I make in Korea. It really really furstrates me.

Anyways, I'm so vehemently opposed to paying Canada 25% of my income that I think I really will attempt to "fly under the radar". Anybody know what the possible repurcussions of this would be if I got caught? How much do they investigate it? If I just say I backpacked through Asia for a year, will they thoroughly inestigate it? How would they know any different?
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dieselcanuck



Joined: 19 Sep 2006

PostPosted: Wed Jan 24, 2007 1:33 am    Post subject: Reply with quote

Hey there,

My experience with revenue canada is that they are meticulous, relentless, and downright harassing when they figure-out that you owe them money.

Government is the most corrupt institution on the face of the planet. They are nothing more than organized crime run by the illuminati. Don't believe me? Check out videos by Jordan Maxwell on google videos.

D

Vissan wrote:
Lemon, thanks for the reply.

As you can probably tell, I'm just a bit frustrated. I'm the only canadian at the school I work at right now. When I ask about taxes to the other tachers, they look at me like I'm crazy. They don't believe that I will really have to pay taxes when I return to Canada. When I showed them this thread, they claimed that every person on this thread is mistaken. You get that? They find it that utterly absurd that I would have to pay Canadian taxes on the money I make in Korea. It really really furstrates me.

Anyways, I'm so vehemently opposed to paying Canada 25% of my income that I think I really will attempt to "fly under the radar". Anybody know what the possible repurcussions of this would be if I got caught? How much do they investigate it? If I just say I backpacked through Asia for a year, will they thoroughly inestigate it? How would they know any different?
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enns



Joined: 02 May 2006

PostPosted: Fri Apr 25, 2008 8:31 pm    Post subject: Reply with quote

Any advice on canceling OHIP(Ontario Heath) if you've already been in Korea for a while(one year out of a 2-3 year plan)?

Also, can residency be broken up time wise? For example, I worked here a year on a low-paying hagwon job, went home used my OHIP card for a small service, then came back to Korea for 2 years on a higher paying job. Is it possible only to pay tax on the income of that first year?
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Jessiegirl



Joined: 30 May 2010

PostPosted: Mon Jun 07, 2010 5:26 pm    Post subject: Exchange rate and taxes? Reply with quote

Hey everyone! I know I'm crazy, but I do want to pay taxes. My question is, how do we write down the amount we make? Since we are paid in Korean Won, do we just pick the exchange rate for the Canadian dollar on the day we file?
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shiner



Joined: 23 Oct 2010
Location: KR

PostPosted: Thu Mar 21, 2013 10:46 am    Post subject: paying taxes Reply with quote

Hello....
I was working in South Korea for about 4 years and came back to Canada in 2010....I didn't file any taxes while away because as I saw it, I was not in Canada and not working in Canada so why fork over money when I wasn't using any Canadian resources or even breathing their air....

so, when I came back and got a job here, naturally I submitted a tax form for work in Canada.

Well....a couple of days ago I received two letters from the CRA stating that their records indicate income tax returns were not filed for 2009, 2010....and they've requested me to complete a return and mail it to them.

So, I've been scouring this website to get some advice about this. I've also talked to other teachers who've just told me they haven't returned anything and they haven't received anything in the mail.

Then I came across the non-resident status and the tax-treaty information, which makes sense.

I'm not sure what other people have done. I know there is a non-resident box you can tick on the top of the return, but do I have to fill in some numbers about how much money I made while in Korea? Or is just ticking in the "I wasn't a resident" box and leaving the rest blank enough?

I truly don't feel like I owe the government any money as I was living and working happily in another country and paying taxes there. I also don't feel like I should have to fill out how much money I made while there.

Has anyone encountered this? Or know anyone that has?

I feel like a modern day slave in this country.....
I have absolutely no money as it is and all my money is going towards paying off my student loan.....
Then I see people all the time who suck the system and collect welfare and pop out babies....WTF!!!!

Anyways...that was a rant...

Any advice anyone?

Cheers
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Thu Mar 21, 2013 4:28 pm    Post subject: Reply with quote

Tick the box as a non resident (or you could end up being sent GST rebates, etc and that CAN get you into big trouble).

For the tax return for the year when you left Canada, indicate your date of departure with no intended date of return.

You do not need to file for the missing years.
You do not need to file the NR-73 form. It simply allows for a NON-binding determination of your status. (you may want to take a good look at it though). If you were in fact what, by looking at your ties to Canada, would have been classed as a "deemed resident" then you will need to file for those missing years.

You have no income to report (nothing that they can trace unless you regularly sent money home).

There are no T4s issued from Korea and there is no tax reporting between Korea and Canada.

.
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shiner



Joined: 23 Oct 2010
Location: KR

PostPosted: Fri Mar 22, 2013 7:35 am    Post subject: Tax Reply with quote

Thanks for responding....
Well, I printed and sent off the T1 forms this morning.
I put my Korean mailing address at the top of the form and stated that I was a non resident for the entire time.
I signed the bottom and sent it too them, blank.

I'll see what happens.

I found some information on their official website it anyone is interested:

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/README.html
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last goodbye



Joined: 13 Aug 2006

PostPosted: Wed May 22, 2013 5:39 am    Post subject: Reply with quote

Hey Shiner,

... Any word back yet on your tax situation. i am in the same boat, but still in Korea and have been asked to file for 2 years.... Am looking at filing for non-residency, but the way you did it sounds way easier.... have you heard of anyone getting away with that?

...Can anyone else address this?
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Wed May 22, 2013 2:29 pm    Post subject: Reply with quote

last goodbye wrote:
Hey Shiner,

... Any word back yet on your tax situation. i am in the same boat, but still in Korea and have been asked to file for 2 years.... Am looking at filing for non-residency, but the way you did it sounds way easier.... have you heard of anyone getting away with that?

...Can anyone else address this?


Same answer....

File for your last year in Canada.

Tick the box that says you are departing and indicate the date of departure.
As long as you have not taken any payments from since that date and have no other significant ties to Canada you are worry free.

If you HAVE accepted payments (rebates, credit checks, etc) then you will get stuck filing for those years and either paying tax or repaying the money they sent you.

.
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linkthe2nd



Joined: 04 Apr 2011
Location: Canada

PostPosted: Sat Jun 08, 2013 1:34 am    Post subject: Reply with quote

I just have a question about the difference between "non-resident" and "deemed non-resident." I'm about to leave for Korea hopefully in August, and I want to make sure I'm doing things right.

According to this document:

http://www.cra-arc.gc.ca/E/pub/tg/t4131/t4131-12e.pdf

"If you are a factual resident (read the definition on page 6) or a
deemed resident (read the definition on page 9) of Canada and
you are considered a resident of another country with which
Canada has a tax treaty, you may be considered a deemed
non-resident of Canada for tax purposes.
You become a deemed non-resident of Canada when your ties
with the other country become such that, under the tax treaty, you
are considered a resident of that other country.
See page 19 for the list of countries with which Canada has tax
treaties. "

From what I see, Republic of Korea is on the list. Doesn't this mean we can follow the rules of non-residents while still maintaining some secondary ties with an intention of eventually returning to Canada?

How would we go about getting proof of residency in Korea to avoid paying Canadian taxes?
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Wildbore



Joined: 17 Jun 2009

PostPosted: Fri Aug 09, 2013 6:39 pm    Post subject: Reply with quote

This "cut ties" to Canada stuff is nonsense, since you can legally file a Canadian resident return and exclude your Korean income, thus pay no tax in Canada on that income, as the tax treaty allows.

Section 14 and 15 of the tax treaty clearly states employment income and self-employed income are ONLY TAXED in the country its earned in (Korea).

It is PERFECTLY LEGAL under the tax treaty to file a Canadian resident tax return and exclude your Korean income. If you consider yourself a resident of Canada, write 0 under income (unless u had Canadian sourced income or had T4 slips), apply for the GST credits, maintain your ties (healthcare, house, bank accounts, etc), and go on your way making money in Korea that is only taxed in Korea (according to the tax treaty).
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MrMal



Joined: 22 Jan 2017

PostPosted: Mon Jan 23, 2017 1:19 pm    Post subject: Reply with quote

I am looking at moving to Korea with my spouse to teach but I saw a lot of problematic stuff in this thread, some of which is likely criminal. While I haven't practiced law yet I have a Juris Doctor (JD) and Master of laws (LLM) specializing in Taxation.

The general information is that Canadian residents are subject to worldwide taxation. That means if you remain a Canadian resident then you need to pay Canadian tax.

The tax treaties goal is to alleviate double taxation (requiring to pay both Canadian and Korean tax). They are not, in general, meant for you to be able to choose the lower tax rate. The end result is that you probably can't rely on a tax treaty with South Korea if you are still a Canadian resident. You will be required to pay Canadian tax but will be able to deduct Korean tax.

The question of whether you are a resident is not about whether you "declare" it, it is a factual matter based on your particular circumstances. It is difficult to cut residency with Canada, generally you need to prove that you left and had no intention of coming back. Courts (along with the CRA) are going to be pretty skeptical if you are only going for a year.

Wildbore wrote:
This "cut ties" to Canada stuff is nonsense, since you can legally file a Canadian resident return and exclude your Korean income, thus pay no tax in Canada on that income, as the tax treaty allows.

Section 14 and 15 of the tax treaty clearly states employment income and self-employed income are ONLY TAXED in the country its earned in (Korea).

It is PERFECTLY LEGAL under the tax treaty to file a Canadian resident tax return and exclude your Korean income. If you consider yourself a resident of Canada, write 0 under income (unless u had Canadian sourced income or had T4 slips), apply for the GST credits, maintain your ties (healthcare, house, bank accounts, etc), and go on your way making money in Korea that is only taxed in Korea (according to the tax treaty).


This is straight up tax fraud. If you are a resident of Canada then you are required to pay taxes in Canada on your worldwide income. If you did this I would highly advise you to speak to a tax lawyer as soon as possible.

Don't lie to the government, don't make up stories. If you are attempting to change your Canadian residency status do everything possible to cut residential ties. No possessions in Canada (even in your parents attic), no bank accounts, no credit cards, no drivers license, no library cards, no health cards.

This is a pretty complicated area of law and I would advise you speak to a tax professional.
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