NR 73

[Team J and B 2]

Hi everyone,

I mailed in my NR 73 to CCRA on April 11, 2008, six days after I had entered the USA on my K-1 visa. I received it in the mail today for I had failed to complete it. For those who have completed it, can you please help me out?

On page two, under STATEMENT OF RESIDENCY, I had failed to check all three boxes for:

"Are you, under a tax treaty with another country, considered resident in the other country and not resident in Canada?

Are you subject to income tax in that country on your world income? (total income from inside and outside Canada)

Are you considered resident of a country that does not have a tax treaty with Canada?"

So I checked NO in all three boxes just now. Is that right?

I'd like to mail this off tonight.

Anyone?

TIA!

[Cassie 8]

If I remember correctly, I only checked the first two. because the US has a tax treaty with Canada.

[zyggy 9]

Agreed, the first two statements are valid...

But why are you filing an NR73... did CRA request it... if CRA didn't request it, I would not file that form. It could open a whole can of worms that you don't want to open. All you need to file is a Leaving Canada return at the end of 2008. If CRA request an NR73 at that time, then I would do it then.

Edited June 27, 2008 by zyggy

[Flames9_RN 358]

listened to another unmentioned VJ member,lol

[Team J and B 2]

If I remember correctly, I only checked the first two. because the US has a tax treaty with Canada.

So you checked the first two as "Yes" and left the last question blank?

[Team J and B 2]

Agreed, the first two statements are valid...

But why are you filing an NR73... did CRA request it... if CRA didn't request it, I would not file that form. It could open a whole can of worms that you don't want to open. All you need to file is a Leaving Canada return at the end of 2008. If CRA request an NR73 at that time, then I would do it then.

Hi zyggy,

In my case, I am permanently leaving Canada and have no plans to return as a resident in the near future; the earliest would be our retirement. That is why I am filling out the NR 73.

By a whole can of worms, what do you mean?

[zyggy 9]

Agreed, the first two statements are valid...

But why are you filing an NR73... did CRA request it... if CRA didn't request it, I would not file that form. It could open a whole can of worms that you don't want to open. All you need to file is a Leaving Canada return at the end of 2008. If CRA request an NR73 at that time, then I would do it then.

Hi zyggy,

In my case, I am permanently leaving Canada and have no plans to return as a resident in the near future; the earliest would be our retirement. That is why I am filling out the NR 73.

By a whole can of worms, what do you mean?

My wife and pretty much everyone on here was in the same boat.. the NR-73 is an optional form.. it is not required. Cassie is one of the only people that I know of who have filed that form.. All you have to do is file a leaving Canada reurn at the end of the tax year. Your responses on the NR-73 may lead Canada Revenue to classify you as a deemed resident of Canada even through you may not and once that determination is made, it's very difficult to get them to unmake it... Deemed residents of Canada must pay Canadian taxes on their worldwide income... until CRA decides that you are no longer a deemed resident.

I will say it again in the most strongest of terms.. Do not file that form unless CRA formally asks you to... you wouldn't want to paint yourself into a corner that you could have avoided.. Most cross border tax experts recommend that the NR-73 not be filed unless CRA formally requests it..

Edited June 28, 2008 by zyggy

[Team J and B 2]

Thanks for that info, zyggy. I knew the form was optional and was sure I needed to be deemed non-resident so I filled it out. I have no ties to Canada other than my BCDL and a bank acct with minimal cash.

I called CCRA and left a vm for them at the International Tax Revenue department. I'll call them back next week and ask if I should not bother mailing the completed form back.

It's just I have no plan to return to Canada to live hence I wanted to fill out the NR 73.

[Cassie 8]

Agreed, the first two statements are valid...

But why are you filing an NR73... did CRA request it... if CRA didn't request it, I would not file that form. It could open a whole can of worms that you don't want to open. All you need to file is a Leaving Canada return at the end of 2008. If CRA request an NR73 at that time, then I would do it then.

Hi zyggy,

In my case, I am permanently leaving Canada and have no plans to return as a resident in the near future; the earliest would be our retirement. That is why I am filling out the NR 73.

By a whole can of worms, what do you mean?

My wife and pretty much everyone on here was in the same boat.. the NR-73 is an optional form.. it is not required. Cassie is one of the only people that I know of who have filed that form.. All you have to do is file a leaving Canada reurn at the end of the tax year. Your responses on the NR-73 may lead Canada Revenue to classify you as a deemed resident of Canada even through you may not and once that determination is made, it's very difficult to get them to unmake it... Deemed residents of Canada must pay Canadian taxes on their worldwide income... until CRA decides that you are no longer a deemed resident.

I will say it again in the most strongest of terms.. Do not file that form unless CRA formally asks you to... you wouldn't want to paint yourself into a corner that you could have avoided.. Most cross border tax experts recommend that the NR-73 not be filed unless CRA formally requests it..

Only because my tax accountant told me that they couldn't file my last tax return without it, and they got that information from the CRA.

[Krikit 1,164]

Interesting. My financial advisor.... who is licensed in both Canada and the US and has multiple Can/Am clients... has never asked me to fill out an NR 73..... just had me sign my tax returns and gave me investment documents to give to our US accountant to place on file with our US tax return.

[Flames9_RN 358]

just my 2 cents--but I phoned Revenue Canada and they said it was an option. Just your typical gov't organization, all depends who you talk to.

[MandE 0]

Ok, I'm opening this one back up with a new question...

I moved to the US Dec. 4th, 2007.

When my accountant filed my taxes for that year, he did not fill in the info that I was no longer living in Canada, and I did not know any better to ask him about it. When my return came back, he told me to fill out form NR 73.

It seems the majority of people on here are against filling out the form unless CRA asks for it, but these same people also seemed to fill out their last tax return properly

So now what do I do?

I don't want to NOT notify anybody, but I'm sure if filling out form NR 73 is the best route either.

Please help!!

[MandE 0]

Ok, I'm opening this one back up with a new question...

I moved to the US Dec. 4th, 2007.

When my accountant filed my taxes for that year, he did not fill in the info that I was no longer living in Canada, and I did not know any better to ask him about it. When my return came back, he told me to fill out form NR 73.

It seems the majority of people on here are against filling out the form unless CRA asks for it, but these same people also seemed to fill out their last tax return properly

So now what do I do?

I don't want to NOT notify anybody, but I'm sure if filling out form NR 73 is the best route either.

Please help!!

[MandE 0]

Also, Cassie (if you are reading this)... What was your experience after having filed your NR 73? Have you already put a post on this that you can link to?

[trailmix 77]

Ok, I'm opening this one back up with a new question...

I moved to the US Dec. 4th, 2007.

When my accountant filed my taxes for that year, he did not fill in the info that I was no longer living in Canada, and I did not know any better to ask him about it. When my return came back, he told me to fill out form NR 73.

It seems the majority of people on here are against filling out the form unless CRA asks for it, but these same people also seemed to fill out their last tax return properly

So now what do I do?

I don't want to NOT notify anybody, but I'm sure if filling out form NR 73 is the best route either.

Please help!!

Filling out the NR73 is not necessary.

What you actually need to do is correct the tax form that is wrong - that will fix it.

You will need to fill out a T1 Adjustment for the 2007 tax year (if you have a CRA account online you can do it online - otherwise just fill in, print and mail).

The form is simple to fill in and you will basically just need to explain under the 'Other details or explanations' area, what date you left and that it was missed on the original return.

If you received a refund in 2007 you will probably have to pay a small portion back - as your non-refundable tax credit will be pro-rated so that you do not receive it for the 27 days you were not resident in Canada in 2007.

Also, if you are still receiving GST cheques etc, you will be required to pay that back as well.

Edited January 7, 2009 by trailmix