Do I still have to file Canadian taxes if I don't live in Canada?

[neiks 19]

You can complete a NR73 Detemination of Residency Status (Leaving Canada) to get the CRA ruling for your situation.

http://www.cra-arc.gc.ca/E/pbg/tf/nr73/nr73-08e.pdf

[HeatDeath 430]

Ack! NO!

Do NOT file an NR73 unless you are basically ordered to by CRA!

If you give CRA the opportunity to deny your non-resident status, they are, apparently, according to several sources I've read, much more likely to do so than if you simply leave, declare that you have left Canada on your last tax return, and file no further returns. You are not legally required to fill out the NR73, so don't unless they tell you to. And even at that, do not fill it out without professional help.

[neiks 19]

Ack! NO!

Do NOT file an NR73 unless you are basically ordered to by CRA!

If you give CRA the opportunity to deny your non-resident status, they are, apparently, according to several sources I've read, much more likely to do so than if you simply leave, declare that you have left Canada on your last tax return, and file no further returns. You are not legally required to fill out the NR73, so don't unless they tell you to. And even at that, do not fill it out without professional help.

Ok, sorry to suggest it. I have done one, but my circumstances are a bit more complicated than most.

[Krikit 1,164]

Ack! NO!

Do NOT file an NR73 unless you are basically ordered to by CRA!

If you give CRA the opportunity to deny your non-resident status, they are, apparently, according to several sources I've read, much more likely to do so than if you simply leave, declare that you have left Canada on your last tax return, and file no further returns. You are not legally required to fill out the NR73, so don't unless they tell you to. And even at that, do not fill it out without professional help.

Sorry, I don't understand the point you are trying to make. Could you please elaborate?

[HeatDeath 430]

Sorry, I don't understand the point you are trying to make. Could you please elaborate?

Apparently, it has been the experience of some people that CRA can, in some cases, be overly conservative when considering, based on remaining property and ties to Canada, whether or not a person is still a resident of Canada for tax purposes.

Some of these people feel, and write rather convincingly, that CRA, given the opportunity to choose, have and will tend to rule that people are residents of Canada, even if the remaining ties to Canada are fairly thin (a few remaining bank accounts, RRSPs, maybe a cottage somewhere), in order to [somewhat self-servingly] maximize their own tax revenue.

These authors make a case, in my opinion a not-unreasonable one, that it is better not to give CRA the opportunity to authoritatively rule on your Canadian residence, given any reasonable alternative. Clearly, if CRA request and require you to fill out an NR73, you have no option. But it is the considered opinion of these authors that this is not a course of action you should undertake willingly. They hold that the normal course of action - filling out a leaving-Canada tax return and then not filing any more - is perfectly in accordance with Canadian tax law and that voluntarily filing an unsolicited NR73 invites additional attention - almost certainly unwanted attention - from a government agency who's interests do not necessarily (or even likely) correspond with your own.

[Krikit 1,164]

Thanks for elaborating. They seemed to be quite reasonable with my NR-73. And I have continued ties and income from Canada. I also didn't use professional help.

Edited April 10, 2011 by Krikit

[Flames9_RN 358]

I still have 1 cdn bank acct open--and at the time I had RRSP's! I didnt fill out the NR-73. I left Canada in Dec 2004. So When it came time to fill out 2004 taxes---on the front of the tax form it asks when one became or ceased to be a Cdn Resident. In that box I jotted down Dec 17 2004. Was simple as that. And for fun I checked off the box for the Rebate thingy even though I knew I made too much $$$$. Canadian tax dudes sent me a letter stating I was denied, because I ceased to be a Cdn Resident in DEc 2004.

Some have filled out the NR73 and some have not. ON a few tax forums I visited they said do not, but again, its not their butt they are covering,lol Why give do any more paperwork then you have to do.

[zyggy 9]

Apparently, it has been the experience of some people that CRA can, in some cases, be overly conservative when considering, based on remaining property and ties to Canada, whether or not a person is still a resident of Canada for tax purposes.

Some of these people feel, and write rather convincingly, that CRA, given the opportunity to choose, have and will tend to rule that people are residents of Canada, even if the remaining ties to Canada are fairly thin (a few remaining bank accounts, RRSPs, maybe a cottage somewhere), in order to [somewhat self-servingly] maximize their own tax revenue.

These authors make a case, in my opinion a not-unreasonable one, that it is better not to give CRA the opportunity to authoritatively rule on your Canadian residence, given any reasonable alternative. Clearly, if CRA request and require you to fill out an NR73, you have no option. But it is the considered opinion of these authors that this is not a course of action you should undertake willingly. They hold that the normal course of action - filling out a leaving-Canada tax return and then not filing any more - is perfectly in accordance with Canadian tax law and that voluntarily filing an unsolicited NR73 invites additional attention - almost certainly unwanted attention - from a government agency who's interests do not necessarily (or even likely) correspond with your own.

I completely agree. Do NOT file an NR-73 unless CRA specifically requests it. Why subject yourself to undue scrutiny and the possiblility they rule against you when you don't have to. neiks does have a special situation. She lives in the US and still works in Canada as a Canadian Government employee.

Edited April 11, 2011 by zyggy

[suzukiwookie 1]

Ok thanks guys. I've decided to keep my CDN bank accounts and just mind my business. I will not be filing canadian taxes as I don't live there. Period. The end. I have tiger blood. I'm a warlock. lol

[StacyandPeter 2]

Here's our situation...my husband now lives and works in the US (since May 2011). He still owns a property in Canada and uses it as a rental property (however, with taxes owed/mortage rate, etc.) we do not make any money on the property.

We have an accountant we've been working with but he doesn't seem to be sure of what he is doing. What should exactly be doing as far as filing in Canada? Any help would be greatly appreciated!

[NinaD 6]

You don't have to file taxes in Canada if you are a resident of the USA and you have no qualifying Canadian Income. I let Revenue Canada know of my address change, so they know I am not a resident of Canada, but that if they need to contact me they have my info. ie. for a reassesment or something on a past return.

[NinaD 6]

Here's our situation...my husband now lives and works in the US (since May 2011). He still owns a property in Canada and uses it as a rental property (however, with taxes owed/mortage rate, etc.) we do not make any money on the property.

We have an accountant we've been working with but he doesn't seem to be sure of what he is doing. What should exactly be doing as far as filing in Canada? Any help would be greatly appreciated!

Hmmm, I also know that Canada and the USA have a reciprical agreement. If you pay the taxes in one country you can let the other country know that you have fulfilled your tax requirements. There is a form that you have to fill out and mail to Revenue Canada, but honestly, I am not sure what it is called. Maybe you should get an accountant that deals specifically with foreign earned income.