Korean Job Discussion Forums

CanadianBanana · Joined: 22 Jun 2006

Okay here is the deal. I was working in korea for nearly 4 years. I haven't filed my T4 income taxes in the past 2/3 years.

I should file my income made in Korea for record but i shouldn't be taxed on it since I should be deemed resident in Korea. Correct??

The thing is I own property in Canada therefore can I be deemed non-resident in Canada while I was in Korea?

I paid my taxes in korea therefore i shouldnt have to pay them in Canada, but does my property in Canada override this status?

Another thing is. Because i didnt file my income taxes, I am being charged MSP (medical service plan) at about 50 some dollars a month. Which is now at around $600 dollars owing.

MSP is now threatening sending a collections after me.

Any have any experience or advice they can give?

so far these are the options I thought of:

1) File income tax for the previous years
(good result) Not taxed on korean income and have full MSP coverage
(Bad result) Get taxed on Korean Income because of my property

2) Just pay the $600 in MSP until i find a job

3) File income tax but state money eared as zero. (think the korean/can goverment have some ties here so they may be able to check up)

Other notes:
Property owned is considered my principal residence, but is being rented and I am living with my parents.

Any advice would be helpful

Thanks.

SpiralStaircase · Joined: 14 Feb 2008

What makes you think you should be deemed a non-resident of Canada?

The government will look for both primary and secondary ties. This includes property, passports, licenses, bank accounts, registered vehicles, and loose ends that tie you to Canada. There is no sure formula for being granted non-resident status which is why you should have taken care of this before leaving the country.

What taxes did you pay in Korea?

Dude. Get over to the nearest H'n'R Block pronto.

crossmr · Joined: 22 Nov 2008 Location: Hwayangdong, Seoul

CanadianBanana · Joined: 22 Jun 2006

Yes, I was paying taxes while I was in Korea.
And Yes, now i know that you can halt your MSP payments if you are going to leave Canada for an extended period of time. But I am pretty sure most Canadians in Korea did not know/do it.

MSP wants me to pay the $600 dollars owing and for me to file my taxes for 2008 and 2007. Once that is done then they said they will reimburse me that $600, But as many of us know. that money wont be seen for a very very long time.

My biggest concern is my property and if that ties me to Canada even though i did spend a full year in Korea. Thus voiding my non-residency in Canada and declaring that I am of resident regardless of my absence.
If that is so, then i may have to pay taxes in Canada for the income made in Korea.

crossmr · Joined: 22 Nov 2008 Location: Hwayangdong, Seoul

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

aimeecate · Joined: 03 Sep 2006

It depends on when you left Canada and if you went home at all. I had to pay taxes on my income for my first year here because I came home for a while and then went back. The H&R Block guys told me that they assume you will only go for a year, so when you file for the first year if you can't prove you paid taxes in Korea to their satisfaction they'll estimate what you made and charge you Canadian taxes. That's what happened to me.

I came back to Korea and haven't been home since. Revenue Canada did send me a letter looking for the taxes for the years after my first year here, but when I called them they told me to just send them a letter saying I did not live in Canada for those years and I am not required to file at all.

It all depends on your situation.
I don't really have any property at home except for a bank account and I didn't renew my health card or have my Mom cash any HST checks I was getting.
If you are actually still renting property then you might have some issues though. It is my understanding that the is a major tie to Canada.

I agree with the others, contact H&R Block and let the professionals help you!

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

AS far as the MSP goes... write them (not the bill collector) and tell them IN WRITING that you were out of the country. Be specific about dates. You may be required to prove it (copies of your ARC, passport stamps, visa, etc).

You cannot be billed if you are disqualified (out of the country for more than 6 consecutive calendar months).

.

Girlygirl · Joined: 31 Oct 2008

I too own a property in Canada. The first year I was charged a hefty fine by CRA for not filing my income earned in Korea, even though I did pay taxes in Korea. BTW, I was 1-year late, so you can imagine the accumulated daily interest. So for this year, I filed my return and ended up paying around 300 CAD. I don't know too much about Korea-Canada tax treaty, I think that if you own a property in Canada, you MUST file your income every year.