Income tax while abroad? GST, UCCB, etc.

Hi everyone,

I'm going to be living in the UK with my spouse for 2 years (or a little less, we're returning before my visa expires). I'm currently unemployed, a stay-at-home-mom, but receiving the universal child care benefit and the GST credit, etc.

Should I just give CRA a relative's address and continue on like I'm still living in Canada or do I need to inform them? Would I be considered a non-resident if it's less than two years away?

Thanks for your help!

You will not be resident in Canada, so will not be entitled to GST and CCTB, so no point faking address.

besides, being non-resident ends Cdn income tax, which is probably worth more than GST/CCTB to both of you.

Actually, if you still have ties in Canada (property, bank accounts, a Canadian driver's licence, family ties) you may still be considered a Canadian resident for tax purposes. The UK and Canada have a double-taxation treaty, which means under most circumstances you are only taxed in one country or the other, depending on the exact circumstances in your stay in the country where you are not ordinarily resident (ie, for you and me, that would be Canada as that's where we were born, and intend to return to after a "temporary" absence").

The tax laws when abroad for relatively short periods of time get really confusing - I'm trying to sort out my taxes as well since I have to file claims in Canada AND the UK for separate parts of the tax year. This leaflet from the Canadian Revenue Agency might help a bit. HM Revenue & Customs Service has a similar one here.

Actuall=y, the same tax treaty also has a residency determination clause, which the poster would clearly satisfy as being UK resident -- and thus Cdn non-resident -- so would NOT be Cdn resident.


So, inform CRA that you have moved, and stop the GST and CCTB payments. You will only have to repay them if you don't.

How does one contact the CRA from the UK?

I have tried several times and can't find a telephone number.

They are all toll-free numbers which, while they are great in Canada, cannot be accessed from the UK to my knowledge.

I tried the (613) number for international returns but they couldn't help me as I am Canadian and they said they only deal with foreign workers in Canada.

I'm still trying to pay my tax back from 2008-2009. I have to write cheques in pounds sterling to my Canadian bank, wait 30 days for it to clear, then pay the CRA electronically but I can't seem to communicate with them. I just made my own payment arrangement!!

I can't figure out if I'm a resident here or in Canada for tax purposes. According to the UK, I'm a resident if I've been here for 183 days or more of the tax year. Well I've been here since February 2009 so that means I've been here the entire 2009-2010 tax year. But the CRA website says I am a resident of Canada if I have a bank account and driver's license in Canada, which I do.

Can anyone give me some 'next steps'? I'm working out a Spousal Visa for my other half and trying to do my tax return to get all the numbers right.

***Confused***

Since UK has a tax treaty with Canada, minor ties such as the ones you mention do NOT keep you tax resident in Canada.

You should file a departure return based on the day you left Canada, following all aspects of the "Emigrants guide" for the year you left, with a departure date in February 2009

Other than 1-613-952-3741, there is no other number. The explanation you gave for not being able to talk to you sounds fishy. Tell then -- correctly -- that you are departing resident.

Better yet, don't both calling them at all and just file according to the emigrants guide.

Hi

I am a Uk chartered accountant / chartered tax adviser and a Canadian CGA. I practice in the UK specialising in helping Expat clients with their tax affairs.

Please feel free to contact me if you need help filing a UK or Canadian return or need tax advice.

Kieran Lynch
kieran@lynch.pro
www.lynch.pro
01782 444 256