Do I HAVE TO declare myself as a non-resident(Cdn purposes)?

umm sorry to sound completely clueless but could someone please explain the above tax amendment in simple terms??

Am currently fretting about getting a T5 and not a NR-4 from the bank for 2007, 2008. I've been non-resident since 1999 and did an exit tax return that year but none since - what will happen when I repatriate later this year (2009). Any advice welcome!

Thanks in advance.

Did you tell the bank in 1999 when you left that you were a non-resident? Have you been receiving T5s since 1999?

I think this amendment means that Cdn banks (or any entities not related to you = arm's length) no longer have to withhold taxes when they give you interest even if you tell them that you are a non-resident (assuming you have a Cdn bank account of course). It became effective in 2008 so I'm not sure how it would apply to you if you notified your bank back in 1999.

Thanks for the reply! CRA knows we (husband and I) are non-resident and we have one chequing account (no interest) but I added a savings account in 2007 for kids in 2007 (in my name) and didn't realize I had to notify bank of non-resdiency status thus the T5s. The amounts are very small but I'm sure CRA will want their cut. I also realized going through our papers that husband has T5s from mutual funds going back to 1999. How do we handle those??

umm sorry to sound completely clueless but could someone please explain the above tax amendment in simple terms??

It means there is no Part XIII tax on bank interest anymore. So the NR4 and the T5 will have the same information on them.

-- Sun Mar 15, 2009 6:17 pm --

The amounts are very small but I'm sure CRA will want their cut. I also realized going through our papers that husband has T5s from mutual funds going back to 1999. How do we handle those??

You need to tell the bank you're non-resident. That won't make much difference now but call the CRA non-resident dept., they will probably want the Part XIII tax on whatever you were paid from 1999 to 2008 before the law was repealed.

Thanks for your replies! Will call bank today.

Steven,

Thanks so much for all of your detailed, helpful replies. I am in a similar situation with the T5 vs NR4 slips. Although I am a non-resident, my bank does not officially recognize non-resident accounts and has now issued a T5 and will not amend it!! I did tell the bank I was non-resident last year, but apparently they have no designation of such.

Could you please tell me what steps you took to correct the situation with CRA? ie, convince them it is a mistake?

Also, any information on what banks in Canada offer non-resident accounts and will issue NR4's?

Thanks!
Mike

I thought all of them did to be honest. BMO, RBC and Scotiabank all have overseas branches so they must do, would have thought HSBC probably do as well.

Once the T5 has been issued they can't withdraw it, only amend it. Now they're not withholding the tax anymore it's probably not such a big deal but the CRA may still think you're resident if they're receiving a T5 from the bank. So either call them every year and tell them to ignore the T5 or change banks, I guess. I'm not sure what the legalities of it are under the Banks Act. I was under the impression the bank had to record you as non-resident for tax purposes if you say you are, they can't just ignore the request.

Some US banks do have Canadian dollar accounts in the same way that most Canadian banks have US dollar accounts, but from what I recall when I looked into it, they've got all kinds of silly restrictions and crap interest rates (in much the same way as the USD accounts offered by Canadian banks).

A lot of people on here recommend using RBC or Harris Bank (BMO) in the US because it's easier to transfer over your credit history, but personally I came to the conclusion the other day that Scotiabank makes more sense as they have a more significant overseas commercial banking operation.

Thanks Steven,

Sorry if I didn't make it clear, I'm a Canadian overseas in Dubai, not the US. But for now I will probably try and open an account with HSBC in Canada, since that's who I bank with here in the UAE.

I can tell you it was a bit of a shock to receive a T5 when I know I made it clear that I was non-resident. And now they are saying "there's nothing we can do" so it's pretty infuriating. And I am a bit stuck, because to move the money OUT of the country again would entail a large foreign exchange loss and wouldn't reverse the T5 anyway.

Such are the joys of expat life.

Sorry to ask again, but how did you go about approaching CRA regarding your own situation with the T5? Just wondering if you had to go to the trouble of filing the NR73 to be deemed non-resident or what? Not to pry, feel free to pm if that works better.

Thanks,
Mike

You need to tell the bank you're non-resident.

Is it sufficient to write to the bank now and say I'm a non-resident, here's my new US address effective Jan 1, 2009. I didn't tell them in January. Is that going to cause problems for me with respect to the T5/NR4 situation for tax year 2009?

They have to issue T5s and NR4s by the end of February so it's too late now. Besides it covers last year, not this year, so if you were resident in 2008 then they should be issuing you a T5 anyway. If you tell them now it means they will issue an NR4 next year.

They have to issue T5s and NR4s by the end of February so it's too late now. Besides it covers last year, not this year, so if you were resident in 2008 then they should be issuing you a T5 anyway. If you tell them now it means they will issue an NR4 next year.

Right. But does it matter from the bank's point of view what time of the year I became a non-resident? They will still issue a NR4 if at ANY time during 2009 I became a non-resident? Thanks.