ottawacisco

I'm a Canadian citizen now. I sponsored my parents to immigrate here two years ago. Now a
US company is going to give me an attractive offer but I'm not sure if I can accept it and
move my family there (my wife and kids). My questions are:

1) Can I move my family to the states and my parents will continue to live in Canada? I
will continue to support them until they got Canadian citizenship and reunion with me
in the states.

2) Can I declare my family to be non-resident so as I may be exempted from the dual-tax
duty? Does it violate the sponsorship agreement? Or do I have to pay Canada tax because
of my parents living here?

Any advice will be greatly appreciated!

gsorosjr

Speaking from personal experience. I have done just that, only difference is my wife who I
sponsored continued to live in Canada, while I worked in US.

> 1) Can I move my family to the states and my parents will continue to live in Canada? I
> will continue to support them until they got
Canadian
> citizenship and reunion with me in the states.

1) If your parents are already landed in Canada, sure, you can go wherever you want.
However, when it comes to them getting a citizenship it would work against them if it
looks like they intend to immidiately leave Canada. The indication of which would be if
their only income is support from you, who's in States. The case could be made agianst
them that they have no sufficient residential ties to Canada (no income, no family in
Canada). This level of scrutiny will be more likely if they start going to States to
visit you. Remember, the whole issue of using Canada as springboard to US looks
extremely negative to Canadian authorities. Apart from Canadian side of things, you
have to worry about US immigration. How exactly are you going to bring your parents to
US, under what status? It won't be much simpler after they are Canadian citizens.

> 2) Can I declare my family to be non-resident so as I may be exempted from the dual-tax
> duty? Does it violate the sponsorship agreement? Or do I have to pay Canada tax
> because of my parents living here?

I don't think it violates the sponsorship agreement. But for you tax liability, this is
complicated matter where using a crossboard tax accountant would be the smartest move.
Proving a Canadian non-residency for taxation purposes is exactly the opposite to proving
residency for Citizenship purpose. If for the latter you have to show as many ties to
Canada as possilbe, for the former you need to exhibit as little as possible. In both
cases there is lots of discretion on part of authorities. Just visiting Canada frequently
enough (no official definition) may make you Canadian resident in Canada Revenue's
opinion. Certanly having close relatives and even worse any property/rental in your name
will work against you. In worst case you would have to pay Canadian taxes on your US
income but you'll get credit for tax you paid to US, so it won't be double taxation. Given
way higher compensation in US it still makes sense in many cases. Once again consult with
an accountant who specializes in US/Canada.

ottawacisco

Thank you very much for your info!

In article <[email protected]>, [email protected] wrote:
> Speaking from personal experience. I have done just that, only difference is my wife who
> I sponsored continued to live in Canada, while I worked in US.
>
> > 1) Can I move my family to the states and my parents will continue
to
> > live in Canada? I will continue to support them until they got
> Canadian
> > citizenship and reunion with me in the states.
>
> 1) If your parents are already landed in Canada, sure, you can go wherever you want.
> However, when it comes to them getting a
citizenship
> it would work against them if it looks like they intend to immidiately leave Canada. The
> indication of which would be if their only income is support from you, who's in States.
> The case could be made agianst them that they have no sufficient residential ties to
> Canada (no income, no family in Canada). This level of scrutiny will be more likely if
> they start going to States to visit you. Remember, the whole issue of using Canada as
> springboard to US looks extremely negative to Canadian authorities. Apart from Canadian
> side of things, you have to worry about US immigration. How exactly are you going to
> bring your parents to US, under what status? It won't be much simpler after they are
> Canadian citizens.
>
> > 2) Can I declare my family to be non-resident so as I may be
exempted
> > from the dual-tax duty? Does it violate the sponsorship agreement? Or do I have to pay
> > Canada tax because of my parents living here?
>
> I don't think it violates the sponsorship agreement. But for you tax liability, this is
> complicated matter where using a crossboard tax accountant would be the smartest move.
> Proving a Canadian non-
residency
> for taxation purposes is exactly the opposite to proving residency for Citizenship
> purpose. If for the latter you have to show as many ties
to
> Canada as possilbe, for the former you need to exhibit as little as possible. In both
> cases there is lots of discretion on part of authorities. Just visiting Canada
> frequently enough (no official definition) may make you Canadian resident in Canada
> Revenue's
opinion.
> Certanly having close relatives and even worse any property/rental in your name will
> work against you. In worst case you would have to pay Canadian taxes on your US income
> but you'll get credit for tax you
paid
> to US, so it won't be double taxation. Given way higher compensation
in
> US it still makes sense in many cases. Once again consult with an accountant who
> specializes in US/Canada.