Lived in Canada for 10 years, Having citizenship and OCI card. I am planning to go back to India and at the same time , want to keep the option to come back anytime. Right now, thinking to leave for 10 -12 months. I wonder , I should go as a resident or non resident ? Also, Do I need to submit any departure tax, if i decide to leave permanently.
Location: God's own country
Posted on: 14-03-14 01:14:51
There is a detailed questionaire that you will have to fill for residency (tax) purposes before CRA grants / refuses non-resident status.
if you say that you are currently considering coming back after 1 year, you will not be granted non-resident status.
In my case, I said that since job oppertunities were not there as the govt. advertises and since immigrants are not liked by employers to be given jobs (unless you are in IT, Finance), I said that I will not come back again and they granted me non-resident status.
Having it just saves you from filing tax (the hassle) and gives you no other benefit.
however, there might be oppertunities coming for you in the Gulf, once you land in India and hence having a non-resident status will help you save money. So your call and discretion.
Peace by Murali
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I am a Gents and not a Ladies.
Quote:
Originally posted by bolona
Lived in Canada for 10 years, Having citizenship and OCI card. I am planning to go back to India and at the same time , want to keep the option to come back anytime. Right now, thinking to leave for 10 -12 months.
I wonder , I should go as a resident or non resident ?
-- Your resident status will depend on your ties to Canada. If you are leaving behind your house, family member, bank account (and interest or other income from the Canadian sources) then you are a resident.
Quote:
Also, Do I need to submit any departure tax, if i decide to leave permanently.
-- No departure tax is required. Make sure that you do not have any ties to Canada and file your tax return accordingly (mention your departure date).
Quote:
Originally posted by bolona
Lived in Canada for 10 years, Having citizenship and OCI card. I am planning to go back to India and at the same time , want to keep the option to come back anytime. Right now, thinking to leave for 10 -12 months. I wonder , I should go as a resident or non resident ? Also, Do I need to submit any departure tax, if i decide to leave permanently.
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SOME PEOPLE WILL GO THROUGH THE WHOLE GAMUT AND NOT KNOW WHAT IT IS THAT THEY ..ARE GETTING INTO ....TILL .....IT HITS THEM SO HARD...AND THEN THEY FIND "WOW, I SHOULD HAVE KNOWN THAT"
That is called the URKEL SYNDROME..."DID I DO THAT??"
I thought some one will pick all of the points that you raised. I wanted to respond last night, but let it go. (It is too long a response and just a waste of time and exercise)
Do you know what are all of the rigamarole you have to go through, to complete that exercise...just to start you off...
1) Close your Bank accounts,
2) Your lease for rental
3) Return your Health Card,
4) Surrender your Driver's License
5) Sell all of your possessions (Can't store it here)
6) Can't belong to any clubs, or social group
7) Close all your magazine subscriptions
8) No outstanding bills or debts owing to anyone
9) Etc., Etc.,
THEN, when you return back you will have to START ALL OVER AGAIN...
Here is my take on your query... SAY, you have NO ties to Canada and you also apply and the CRA gives you a clean bill of health and says, "that you are no longer a Canadian". Then you leave, and come back with in TEN Months, and start to work here again, the question that you must ask yourself is??? HOW CAN I BE A NON RESIDENT AND A RESIDENT IN THE SAME YEAR!!!.. So, you are just doing this exercise in futility and I thought you knew this even before you asked the question. !!!
Now to year or 12 month scenario, ONLY if you leave on the 31st of December and DON'T return back to Canada till after 367 days, which means SKIP A WHOLE YEAR, will you be away for that TAXATION YEAR. So, you will have to do all of the planning very diligently and meticulously to avoid getting taxed at the least for the Year or the 12 months that you want to be away as a NON RESIDENT, after the approval from the CRA.
Hope you now understand the system and how to plan your holidays. But then, you are back to grind once again. Have your jollies.
Bon Voyage.
FH.
Hi Everyone,
Thanks for yr feedback. I would like to add bit more about my situation here
I would be getting my CPP and no other benefits from govt, though some of my RRSP amount is still here for withdrawal. I think there are two best options here if I am staying in India for 1-2 years. Either apply as a " NON resident for income tax purposes " and file income tax each year from India as " NON resident for income tax purposes" under select 257 OR .. go on vacation in India and file Income tax the way I am filing as a Canadian citizen.
Not sure, If I stay out of Canada for more than six months, I have to become non resident for income tax purposes or I can come back after a year or two and live here for sometime without any hassle. As for as ties are concerned, I have no ties except my bank account, RRSP, CPP.
Not sure, is there is any other better option available under the circumstances ?
Quote:
Originally posted by bolona
Hi Everyone,
Thanks for yr feedback. I would like to add bit more about my situation here
I would be getting my CPP and no other benefits from govt, though some of my RRSP amount is still here for withdrawal. I think there are two best options here if I am staying in India for 1-2 years. Either apply as a " NON resident for income tax purposes " and file income tax each year from India as " NON resident for income tax purposes" under select 257 OR .. go on vacation in India and file Income tax the way I am filing as a Canadian citizen.
Not sure, If I stay out of Canada for more than six months, I have to become non resident for income tax purposes or I can come back after a year or two and live here for sometime without any hassle. As for as ties are concerned, I have no ties except my bank account, RRSP, CPP.
Not sure, is there is any other better option available under the circumstances ?
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First and foremost, see if the Canada Pension and OAS will send money to you out of Canada, every month, to a Bank account where you want the money. They normally do. But it is good to know to which countries and Which Banks. Also having an RRSP or an RRIF OR RECEIVING CPP or OAS will make you a Canadian. They are not considered or treated as TIES to Canada.
In India I have used BANK OF NOVASCOTIA in diffent towns. That is just to give you a hint/tip. There are others. The Canadian Government will with hold 25% as TAXES, for a Non Resident. So also the Investment house when they pay you the RRSP funds.
Depending on your total annual income, called Gross Income for tax purposes, you can always decide what is best suitable to your requirements. Resident or to be a Non resident. See if it is worth it.
If Non resident is your choice, obtain a Non resident Certification from CRA and after receipt of that clearance letter, Leave Canada the earliest. Your departure out of Canada will fortify your intentions that you have decided to be one.
That does not preclude you from returning back to Canada for a visit or a holiday. Any stay of less than 182 days in an year, which starts after the first of January of any year will treat you as a non resident subject to certain conditions, such as employment here, local investment income etc., the list goes on....
The witholding of 25% on your income is the penalty that you incur for being a Non resident. Some or most of it could be recovered by you when you file a return. You will have to go through the filing to decide upon it. If you know how to maximze, then, utilise your knowledge and derive the benefit.
The downside is You lose the MEDICAL BENEFITS, UPON Departure. So, cover yourself with a policy for a world traveller. There are a few on the market and most of them are based outside Canada. Also there is one here too.
If you ever want to become a RESIDENT Canadian AGAIN, you can always do it by declaring the same to CRA. The RED TAPE is the same to become a NON RESIDENT.
Hope this will help you a little bit in your decision making process.
FH.
Thanks FH. I am not getting any OAS but my early CPP may start in couple of months. I wonder, Can I go on vacation, out of Canada, for two years, maintain the same status in Canada as of now and file my regular income tax in Canada as I am filing now either on line or through my accountant in Canada ?
