Canadians in Australia: filing income tax in both countries?

Hi everyone. I really need help!! PLEASE! Ok the background info. I am a Canadian. My passport is Canadian. Last year I came to Australia on a working holiday visa and met the love of my life and was granted a partnership visa in December of 2010. So my status at the moment is temporary resident of Australia. I have worked in Australia for the past year and filed my income tax in Australia as well. My question is this. Do I still file an income tax return in Canada as well even though I haven't worked there in over 2 years? We are thinking of moving back to Canada maybe in a year or less and hoping to get my partner his Canadian residency. My mom still lives in Canada as does my family. I have a joint bank account with my mom and my Canadian health card has just been put on hold as I am allowed to be out of the Country one more year before it becomes invalid. I DON'T KNOW WHAT TO DO ABOUT MY CANADIAN INCOME TAX RETURN?? Do I file one? Do I not since I don't have any Canadian income. I filed one last year but I wasn't a resident of Australia yet, now I am. Can you be a resident of two countries??? HELP!!!

-- Sun Feb 20, 2011 8:32 am --

Never mind everyone I figured it out on my own! Thanks

I've been filing tax returns in both countries, as I intend to move back to Canada this year. I will have been in Australia for 4 years. However, the whole time I've been on temporary work visas, not a residence visa like you, so I'm not sure if that's different.

Residency for immigration/visa purposes has absolutely nothing to do with residency for tax purposes.

If you satisfy the ATO's definition of residency (which is unrelated to DIAC's definition), and you meet the "no house or spouse/dependent"* rule in Canada, as long as you tell the CRA that you are no longer a Canadian tax resident (by filing a departure tax return), you have no tax commitments to Canada.

(there are certain situations where the above may not be true, but that is the general principle that the CRA follows. In general, you can't be a tax resident of two countries (especially when the two countries have a tax treaty (as Canada and Australia do) at the same time).

(CharR, it is conceivable that you never had to file Canadian tax returns at all while you were here in Oz if you meet the "no house or spouse/dependent" rule)

*No House or spouse/dependent rule: You don't own a residential property in Canada, or if you do, you cannot easily move back into it (i.e. it's rented out at arms-length, and not to a relative or left vacant), and you don't have a spouse or any dependent children living in Canada.

My accountant has been filing my tax returns for me in Canada. I get credit for any taxes already paid in Australia due to the tax treaty.

It IS possible to be a resident for tax purposes of two countries (I cleared this with my accountant, and by the fact that my Canadian taxes are filed indicating the tax paid and tax return information from Australia)

The reason for me doing this, something to do with RRSP contributions and allowable deposits to RRSPs. If you're not worried about your RRSP contributions and you're living abroad then you obviously won't want to be filing taxes in Canada.

So basically, I don't HAVE to file taxes in Canada, I could have declared myself a non-resident, but due to my intentions of moving back there, that hasn't been the best option for me.

Hi Guys. I think I will need your help to. So I`m polish, who moved to Australia 5 years ago, Have Australia permanent residency, also 2 years ago I`ve received a Canadian residency, lived there for a year and now I`m back in Australia for my husband school. When I did my tax returned in Canada last year I`ve declared an income from Australia, I don`t know how to do this this year, I was there 1 tax year and only have income from Canada, can I still do my taxes online or I have to do this on paper.
I really need to talk to good accountant if somebody can recommend someone I would really appreciate it .