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Barqs
Joined: 31 Jan 2006
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 Posted: Thu Apr 20, 2006 7:17 am Post subject: Canadain Taxes |
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What are the chances I can get away with not paying tax back in Canadaon the money I earn here is there things I should be avoiding doing? I guess what I am asking is how will the taxman know how much I am earning here. Also the tax I am paying to the Korean government do I have to pay to Canada too I herd the governments had some sort of deal.
Thanks |
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Canucksaram
Joined: 29 Apr 2003
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| Posted: Thu Apr 20, 2006 9:39 am Post subject: Internet Babylon. |
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You "herd" something about the government, eh?
I'm glad I'm not the one required to pay your salary.
Tick, tock, tick . . . the clock counts down. Moment by moment, day by day, and slowly, year by year, literacy grows further doomed by the Internet.
Alas, Babylon! |
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bellum99
Joined: 23 Jan 2003
Location: don't need to know
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| Posted: Thu Apr 20, 2006 2:58 pm Post subject: |
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| You even spelled Canadian wrong in the title. |
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bourquetheman
Joined: 18 Aug 2003
Location: Suwon
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| Posted: Thu Apr 20, 2006 3:03 pm Post subject: |
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Yeah I'm not one to pick on the occasional typo but when you screw up something like Canadian in the title thread then I'm guessing that even Ricky might beat you in a spelling contest.  |
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fancypants
Joined: 22 May 2005
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| Posted: Fri Apr 21, 2006 3:14 pm Post subject: Re: Canadain Taxes |
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| Barqs wrote: |
What are the chances I can get away with not paying tax back in Canadaon the money I earn here is there things I should be avoiding doing? I guess what I am asking is how will the taxman know how much I am earning here. Also the tax I am paying to the Korean government do I have to pay to Canada too I herd the governments had some sort of deal.
Thanks |
clearly, this person has been drinking. i hope.
if you file for non-residency you should be safe:
http://www.cra-arc.gc.ca/tax/nonresidents/individuals/nonres-e.html
i did back in 2001 and a couple of days ago i filed the first return in 6 years...i'll keep you posted. |
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mindmetoo
Joined: 02 Feb 2004
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| Posted: Fri Apr 21, 2006 3:39 pm Post subject: Re: Canadain Taxes |
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| fancypants wrote: |
| Barqs wrote: |
What are the chances I can get away with not paying tax back in Canadaon the money I earn here is there things I should be avoiding doing? I guess what I am asking is how will the taxman know how much I am earning here. Also the tax I am paying to the Korean government do I have to pay to Canada too I herd the governments had some sort of deal.
Thanks |
clearly, this person has been drinking. i hope.
if you file for non-residency you should be safe:
http://www.cra-arc.gc.ca/tax/nonresidents/individuals/nonres-e.html
i did back in 2001 and a couple of days ago i filed the first return in 6 years...i'll keep you posted. |
Given he can't even spell his own nationality correctly and feels using a period every other sentence is good enough, I have a sneaking suspicion he's not going to be able to figure that form out.
Ah more quality teachers here to make us all proud... |
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prairieboy
Joined: 14 Sep 2003
Location: The batcave.
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| Posted: Fri Apr 21, 2006 5:44 pm Post subject: |
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I file my taxes each year. Claim that the money I earned was outside Canada. Don't have to pay taxes.
However, back in December '05, CCRA sent me a letter questioning my deductions. They sent it to me here in Korea (not necessarily the sharpest knives in the drawer work at CCRA). They wanted proof that I could claim my deduction or face penalties and a re-assessment.
I gathered together my pay slips and the letter I received from CCRA about my non-residency status. I also explained that my situation had not changed, I was still in Korea and had no immediate plans to return to Canada.
They sent me back a letter a month later which stated that they had accepted my deductions because of the non-residency status. They re-assessed my taxes at "nil".
As long as you are living and working outside of Canada and have no significant ties you should fill out a residency status form (NR-73) and send it to CCRA.
Cheers |
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coolsage
Joined: 28 Jan 2003
Location: The overcast afternoon of the soul
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| Posted: Fri Apr 21, 2006 9:48 pm Post subject: |
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| What this forum needs is a spell-check similar to the one on www.ajarn.com. That way even people like the OP would appear to more like the teacher he claims to be. The above info is sound. As I've heard it, more than two years away from the Great White North qualifies as non-resident status. We don't need no stinking forms! |
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bourquetheman
Joined: 18 Aug 2003
Location: Suwon
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| Posted: Sat Apr 22, 2006 2:08 am Post subject: |
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For those of you who have filed and gotten non-residency status can you explain what you had in your name back home? I have a bank account back home, 2 credit cards from the same bank, and a driver's licence. My accountant said that I should qualify but I'm not so sure. He said the big thing is if you have property, a car, things like that. I hear it's on a case by case basis though so I'm curious what you had back home that they granted you non-residency. I've been out of the country since 97 and haven't filed since 98 so each year I keep dreading getting something mailed to me.
I've had 2 friends over here for 5 years who DIDN'T file and they just went back home and started filing when they had their new jobs in Canada. They had no problems. However I had one friend who just had a driver's licence and a bank account and she went to file for non-residency and they said she had residential ties and therefore didn't qualify. She had to pay BACKTAXES for the last 2.5 years! Since then I've been weary!!! |
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chronicpride
Joined: 16 Jan 2003
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| Posted: Sat Apr 22, 2006 2:37 am Post subject: |
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| bourquetheman wrote: |
For those of you who have filed and gotten non-residency status can you explain what you had in your name back home? I have a bank account back home, 2 credit cards from the same bank, and a driver's licence. My accountant said that I should qualify but I'm not so sure. He said the big thing is if you have property, a car, things like that. I hear it's on a case by case basis though so I'm curious what you had back home that they granted you non-residency. I've been out of the country since 97 and haven't filed since 98 so each year I keep dreading getting something mailed to me.
I've had 2 friends over here for 5 years who DIDN'T file and they just went back home and started filing when they had their new jobs in Canada. They had no problems. However I had one friend who just had a driver's licence and a bank account and she went to file for non-residency and they said she had residential ties and therefore didn't qualify. She had to pay BACKTAXES for the last 2.5 years! Since then I've been weary!!! |
Tax and non-residency issues for Canadian expats |
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bourquetheman
Joined: 18 Aug 2003
Location: Suwon
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| Posted: Sat Apr 22, 2006 5:50 am Post subject: |
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| Ok, interesting read. Still for the couple of people who got non-residency, what "ties" did you have? I'm really curious............ |
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chronicpride
Joined: 16 Jan 2003
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| Posted: Sat Apr 22, 2006 6:46 am Post subject: |
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| bourquetheman wrote: |
| Ok, interesting read. Still for the couple of people who got non-residency, what "ties" did you have? I'm really curious............ |
For the record, no one files and 'gets' non-residency. Its just a guideline. You don't even need to file the NR-73 and many accountants will encourage you not to bother. To be a non-resident is subjective based on the determination of Revenue Canada at any given time. Just because you've met the guidelines of non-residency over the past xyz years, doesn't mean that you are free from a future audit and potential tax liability for those years, even if you have no primary ties and just a few secondary ties. However, following the guidelines of having no primary ties and little or no secondary ties, will reduce the likelihood of that ever happening. |
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fancypants
Joined: 22 May 2005
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| Posted: Sat Apr 22, 2006 12:45 pm Post subject: |
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| bourquetheman wrote: |
For those of you who have filed and gotten non-residency status can you explain what you had in your name back home? I have a bank account back home, 2 credit cards from the same bank, and a driver's licence. My accountant said that I should qualify but I'm not so sure. He said the big thing is if you have property, a car, things like that. I hear it's on a case by case basis though so I'm curious what you had back home that they granted you non-residency. I've been out of the country since 97 and haven't filed since 98 so each year I keep dreading getting something mailed to me.
I've had 2 friends over here for 5 years who DIDN'T file and they just went back home and started filing when they had their new jobs in Canada. They had no problems. However I had one friend who just had a driver's licence and a bank account and she went to file for non-residency and they said she had residential ties and therefore didn't qualify. She had to pay BACKTAXES for the last 2.5 years! Since then I've been weary!!! |
before i left canada in 2000, i sold my car and closed all my bank accounts. the only "tie" to canada was one credit card. i don't think a driver's license should be a problem (can you cancel a drivers license???).
like i said before, i submitted an NR-73 in 2001 and received a letter stating that in revenue canada's opinion, i was a non-resident for tax purposes. the word "opinion" is key here.
even though i have that letter and was absent from canada for more than 5 years, i am still a little worried about what they are going to think when they get that return from me, the first one in 6 years.
if i were you, i would consolidate my credit cards... |
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mindmetoo
Joined: 02 Feb 2004
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| Posted: Sat Apr 22, 2006 4:45 pm Post subject: |
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No house, no wife, no kids. Don't renew your driver's license/plates. Don't use your health card if you go home. Some say chop up your health card and mail it back. You don't have to close your bank accounts or cancel your credit cards. How will rev can know you're using your Canadian credit card? Can they really get this info suspecting a 25 year old Canadian who earned $10,000 last year is making money abroad? Is it worth their time?
Putting money in your bank account or rrsp might raise a red flag as this information is sent to rev can. |
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UncleAlex
Joined: 04 Apr 2003
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| Posted: Sat Apr 22, 2006 6:46 pm Post subject: Canadian Income Tax |
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The last time I filled out the Non-Residence Satus form at the Canadian
Consulate, I had already been here for eight years. That was in April, of
2002. I reported my earnings here for that stretch of time and haven't
heard from the taxman ever since. So I guess I'm in the clear. Looks like
I've got to hit the consulate this week to file my claim for the past four
years.  |
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