Being a deemed non-resident for canadian Tax purposes

[dannykool]

Also you have to be careful about departure tax, there is a form you have to file declaring what your assets were when you departed. Most people don't get hit with it as it is essentially a capital gains tax that kicks in above $50,000. Most people only have that sort of gain when they sell their house, and real estate is exempt.

You do not need to file a non-resident T1 unless you have Canadian-source income from employment or certain other sources, however simple bank interest for example is exempt from filing, but you must declare to the bank that you are non-resident so they do Part XIII withholding and do not send a T5 to the CRA. If the CRA get a T5 with your SIN on it and no T1 that will cause problems as you owe them money.

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Steve,

If someone has no real assets to declare upon departure, does one has still have to fill out any special forms other than the T1 with the departure date on it ?

The accountant only asked me to do the departing tax return...no other forms were filled out. Concerned.

thanks

[Steven]

If you're just the average Joe Blow with a house, a car and an RRSP as your assets then there isn't any departure tax. Tax shelters are exempt from it and so is your principal residence.

Where people usually get into trouble with it (without your last name being "Stronach") is if they have a CCPC with some money in it, because usually CCPCs start from zero so the total worth of the CCPC at the point of departure is subject to departure tax.

http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... n-eng.html

What I wrote above in the thread isn't totally accurate, it's calculated the same way as CGT.

[dannykool]

If you're just the average Joe Blow with a house, a car and an RRSP as your assets then there isn't any departure tax. Tax shelters are exempt from it and so is your principal residence.

Where people usually get into trouble with it (without your last name being "Stronach") is if they have a CCPC with some money in it, because usually CCPCs start from zero so the total worth of the CCPC at the point of departure is subject to departure tax.

http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... n-eng.html

What I wrote above in the thread isn't totally accurate, it's calculated the same way as CGT.

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thanks. CCPC stands for ?

[Steven]

Canadian Controlled Private Corporation.

[aowdesign]

I became a non-resident for tax purposes too.
I had the help from a lawyer and an accountant, which I highly recommend. They knew exactly what to do and the process was relatively straightforward.

I had my Canadian investments transferred to a trust in my mother's name.

[PepperEvans]

Noble Tax & Accounting Practice is more than equipped to file your income tax return on your behalf whether you’re in Canada, or a non-resident Canadian who’s moved to international shores.

We can file your T3 trust return, personal tax, corporate tax, or if you’re a small nonprofit organization that wishes to apply for tax-exempt status, we can do that for you in a jiffy.

Take the time to browse through our site to learn more about the other services we can render you.

There is no better way to handle your tax and business accounting than the NOBLE way.

[agnelson]

In cross-border tax matters it is ALWAYS advisable to have the same person/firm prepare returns for BOTH jurisdictions. Since this firm's site admits only to preparing Cdn tax returns, it would not be the best choice for preparing and implementing an integrated cross-border tax/financial strategy.
Kinda like going to a tailor who only sells suit jackets, but can't do pants.

So, indeed, there are better ways.

But a valiant attempt at drumming up free business though. Kudos.