catpea33

Hi,

I'm guessing there isn't some super awesome tax person on here so mostly I'm writing to find out if someone has been in a similar situation to me and what they did and if they were audited as a result.

My situation is that I went to Canada in mid-January 2013 with IEC (for the second time, the first time was October 2012 to October 2013) and left again in mid-December 2013. I'm trying to find out if I would be considered a deemed resident or non-resident of Canada. I've read so many tax guidance forms online but nothing that gives a definitive answer.

I came across the tax form NR73 where you have to say what residency indicators you have and then the International Tax Office in Ottawa will tell you if you're considered a non-resident or deemed resident of Canada. I mailed this form ages ago (maybe early February?) and have stalled filing my tax return until I got a response from them, which hasn't yet arrived. I've phoned them countless times to see if they can tell me over the phone but every single time I've had a busy signal. Obviously I'm now running out of time and I don't know what to file as - deemed resident will get me a $1900 refund and non-resident gets me all my tax back it seems.

Residency indicators between Canada and the UK are fairly split: bank accounts in both, driver's license in both, phone plan in both, no residence in Canada but living with my parent's in UK, job (working for my Dad's company) in the UK, belongings in storage in both countries, car in Canada but no car in UK. However, I also did have the intention to return to Canada once I had PR but I had no idea when that would arrive (I have the COPR now).

Also, I guess I should mention that in 2012 I filed as a regular Canadian - I had no idea other tax statuses existed so potentially an answer for 2013's return may provoke a post-filing change to my 2012 return too.

Anyone else been in this situation? What did you file as?
Cat

TheAwesomeMatt

You were in Canada for more than 183 days of the financial year, so you would be deemed a resident for tax purposes.

You should have filed at non-resident in 2012 but I imagine you got most of your money back, right.

catpea33

I thought so too but then the UK and Canada has a tax treaty. Since I have secondary residence indicators in both countries, it suggests that I would be considered a tax resident in the UK and not Canada.

Sadly not. I filed as a resident because HR Block never gave me another option so I never realised there were other options. Of the $21,000 tax I paid, I got a refund of about $3,500.

Ok, pretty obvious to me that I have to keep trying to reach the Ottawa tax office to discuss not just 2013 but also 2012!

Thanks for your help,
Cat

orly

You paid $21,000 in tax? Must be a good job

catpea33

It is a good job but I'm also in Quebec. The tax man loves me there.