debbiem

thanks!
a leetle light bed-time reading...

petesdragon

Here is the reply I got from the Canadian tax man about Residence and Tax, am copying it word for word so if it makes no sense, then its not just me.

Dear Sir,
Canada's tax system is based on residency. Residency status is determined by relevant factors in each particular case. When an individual leaves Canada, residency status is based on purpose and permanence of that individuals stay outside Canada, residential ties within canada, residential ties elsewhere and the length and regularity of visits to Canada. Some guidance can be found in two of Canada Revenue Agency's (CRA's) documents, specifically form NR73 "Determination of Residency Status (Leaving Canada) an the Interpretation Bulletin IT-221R3 "Determination of an Individual's Residence". The forms can be used to request a determination of residency, however the determination of one's status is predominately a self-assessing process. While it is not mandatory to submit this form (unless the individual is requested to do so by the CRA) it contains a useful listing of information that our department considers relevant to non-residency. These documents are available from our website address mentioned in the last paragraph of this letter.

Generally, an individual's ties outside canada are comparable to ties retained in Canada. These include a permanent residence, household effects, social, economic and religious ties, bank accounts, canadian credit cards, Canadian passports, etc. Other than a spouse, common-law partner and /or dependents, family members are not considered ties to a country.

Your inquiry regarding your residency status is speculative in nature and as a result, even if you did complete form NR73 before leaving Canada, we would not be able to provide you with our opinion as to what your status would be, as we base our opinions on actual facts that have occurred.

If you have any questions concerning this letter, you may contact the Client Services Division of the International Tax Services Office by telephone at 1-800-267-5177 or from abroad at 613-952-3741, collect calls accepted. You may also contact us by fax at (613) 941-9776.You can also write to us at the following address:

International Tax services office
Client services Division
2204 Walkley Road
Ottawa, ON K1A 1A8
Canada

Web site www.cra.gc.ca

Hope this does'nt muddy the waters too much

dinger24

Well now I know, well I think I do, em can you explain

marcustandy

I'd say that that just backs up what a previous poster said; where are your family ties, where is your 'home', etc etc.

Bailing out for a couple of weeks while gratuity is paid and then rejoining the 'family home' in Canada would be a tad too risky for me!

debbiem

I [I]think[I] that article 18 gives you the loophole you are looking for, as you aren't a 'national' of Canada even if you are resident... (ie have landed and own property etc)

I'm assuming even if you have landed/ have property/bank account etc you are not a 'national' until you have been granted citizenship?

Soooooo, payment for government services by the UK govt would not be taxable in Canada...

That's my theory and I'm sticking to it.

debbiem

think

but most of my thoughts are fairly irrelevant to what the tax authorities think, obviously...

JonboyE

This is how I read Article 18:

Article 18
Government Services

1.

(a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to any individual in respect of services rendered to that State or subdivision or local authority thereof shall be taxable only in that State.


Remuneration, other than a pension, paid by the UK government to any individual in respect of services rendered to the UK shall be taxable only in the UK.

In other words, so as long as you are a serving member of the British armed forces you only pay tax to HMRC, regardless of where you are stationed.

Unfortunately, this does not apply to pensions as Article 17 says that pensions are taxed in the country where the person is resident.


(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of performing the services.

(b) However, such remuneration shall be taxable only in Canada if the services are rendered in Canada and the recipient is a resident of Canada who:

(i) is Canadian or

(ii) was already a Canadian resident.

In other words, if a Canadian resident is hired by the UK government in Canada they have to pay Canadian taxes.

JonboyE

That won't work I am afraid. Once you are resident in Canada for tax purposes it is hard work to lose that status.

kazbob

Hows about this one for a fast ball, my wife and kids live in Canada but still being in the Forces, I am tax resident in UK. I leave the Forces, but instead of settling in Canada straight away I get a job in the UK, So I am employed in the UK, paying UK taxes still, I then recieve my Gratuity and the day after I pack in my UK life and ship over to Canada.

Would that work or am I clutching at straws???

Cheers now

Bob

debbiem

OK, so now it appears that my 'police checks from around the world' weren't quite good enough and they want 'military police certificates' for both of us as well...
How do we do that then? Just contact the nearest RMP? Is it different for different services? (both blue and green here...)
...and more importantly - how long does it take?! Med requests are here, too....

joepublic

As the old saying goes.........'if in doubt, ask!'

I'm going down the same road as ex_REME and I'd like to canvass the BE member's opinions on which of the following 3 areas they would choose from the choices below. We are a family with 4 children aged 18, 16, 13 and 10 and I would be working in a military base at one of these places.

A preferred order, i.e 3-1-2 with some form of explanation (the good/bad etc) would be really appreciated.

The choices are:

1. Cold Lake
2. Wainwright
3. Barrie

Many thanks

normanstrongbow

With your kids in mind. I would suggest Barrie.
It is a reasonably large community with a commuter rail service to Toronto.

The other 2 locations are remote small communities.

My Canadian son-in-law is a construction engineer at CFB Edmonton.

Simon Legree

Barrie, Wainwright, Cold Lake.

kazbob

Hi Debbie,

Can't remember, are you Army, RAF or Navy?

We are Navy and got our military police checks done and have a contact name and address. Maybe she would also know who the contact point would be for the other services.

Kaz

debbiem

Army and RAF, just to be different

I've just found the tri-service desk that deals with it at the Service Police Crime Bureau in Portsmouth though, through a convoluted route... so probably the same place!

Thanks!

D x