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Politics : Canadian Political Free-for-All -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (15546)	3/2/2012 3:34:20 PM
From: 7 Years	Respond to of 37438

Have a letter into CRA regarding this issue. Talked to a rep back in January, and had a good discussion regarding assets, TFSA, RRSP, other assets, maintaining a Canadian address and bank account (Canadian pensions/annuities/CPP will not be deposited outside Canada unless there is a tax treaty with the respective country), and submitting its NR-73 - determination of residency status (leaving Canada). Good discussion, but as we know, if not on letterhead, can be hearsay. You do maintain your citizenship. There are primary and secondary residential ties to consider - its well detailed on the CRA website - bulletin IT221R3. The biggest issue is the non-resident status for taxes, and the fact that there is not a tax treaty with Panama (Feds seem to think it is a tax haven - Panama is adamant it is not a tax haven). Lots of discussion on living abroad forums where people have not done this properly (through no mistake of their own - dealing with the feds is a black art), and on returning ave been hit with a nice tax bill. You can see this in the way the US is going after its citizens. From IT221R3 bulletin from the income tax act - The residential ties of an individual that will almost always be significant residential ties for the purpose of determining residence status are the individual’s (a) dwelling place (or places), (b) spouse or common-law partner, and (c) dependants. Generally, secondary residential ties must be looked at collectively in order to evaluate the significance of any one such tie, therefore, it would be unusual for a single secondary residential tie with Canada to be sufficient in and by itself to lead to a determination that an individual is actually resident in Canada while abroad. Secondary residential ties that will be taken into account in determining the residence status of an individual while outside Canada are (a) personal property in Canada (such as furniture, clothing, automobiles and recreational vehicles), (b) social ties with Canada (such as memberships in Canadian recreational and religious organizations), (c) economic ties with Canada (such as employment with a Canadian employer and active involvement in a Canadian business, and Canadian bank accounts, retirement savings plans, credit cards, and securities accounts), (d) landed immigrant status or appropriate work permits in Canada, (e) hospitalization and medical insurance coverage from a province or territory of Canada, (f) a driver’s license from a province or territory of Canada, (g) a vehicle registered in a province or territory of Canada, (h) a seasonal dwelling place in Canada or a leased dwelling place referred to in ¶ 6, (i) a Canadian passport, and (j) memberships in Canadian unions or professional organizations. ¶ 9. Other residential ties that the Courts have considered in determining the residence status of an individual while outside Canada, and which may be taken into account by the CCRA, include the retention of a Canadian mailing address, post office box, or safety deposit box, personal stationery (including business cards) showing a Canadian address, telephone listings in Canada, and local (Canadian) newspaper and magazine subscriptions. These residential ties are generally of limited importance except when taken together with other residential ties, or with other factors such as those described in ¶ Just a couple of parts of the bulletin. Check it out. Cheers Ernest