geedee

Is there an accountant in the house??

We still haven't got around to activating our PR status by "flagpoling". Planned to do it Monday.

Just had a thought.... let's say I get work abroad, or we decide to go back to a Tax free country like Dubai, I imagine having Temporary Residence makes it easier to leave.

If we are PR, do we suddenly become embroiled in Canadian Tax forever??

I only ask because I worked abroad with a Canadian, who'd been out of Canada for several years, but he still had to pay tax on his income earned abroad.

Does this only apply to Citizens?

The UK tax laws allow for working abroad, but I don't believe the Canadians do?

In other words, would it be better to delay PR until we are absolutely sure that we intend to stay here until we croak??

Aviator

Depends entirely on your tax status, which can be different to residency status. This will tell all http://www.cra-arc.gc.ca/tx/nnrsdnts...sdncy-eng.html

If you activate PR and then leave the country don't forget about the rules for maintaining PR, two years out of previous 5. Your PR status may run out before your PR card expiry if you reside elsewhere.

geedee

Thanks Aviator.... that's a really useful link! It is very interesting that there doesn't seem to be any differentiation between permanently resident or temporarily resident.

Flagpole, here we come!

JAJ

For tax purposes, there is only "resident" and "non-resident".
A PR/citizen can fall into either of these two categories. As can a foreign national.

However, if you are a PR/citizen and move to Canada to live, you will find it much harder to claim non-residence compared to a foreign national who is on a time limited assignment.

Also, once you become Canada tax resident it is not so easy to lose that status until you sever Canadian residential ties.

iaink

Its not that hard. My wife has done it on at least one occasion, she was living at home with her parents at the time, they continued to live there, so no clear cut cutting of ties. Its just paperwork really.

Steve_

No, it's not like the US where you become resident for tax purposes as soon as you become an LPR. LPR status certainly is a tie to Canada, but if you have closer ties somewhere else you don't become resident for tax purposes.

That's because he's from Canada and probably didn't sever ties to Canada sufficiently for the liking of the CRA, e.g. kept his OHIP card.

Two things you should know about the CRA - they are very keen on deeming people resident for tax purposes, usually what they nobble departing Canadians on is failure to pay departure tax, which is something as an intending immigrant you should be aware of because you can end up being a Canadian tax prisoner. Departure tax is a tax that is unique to Canada AFAIK, basically when you depart Canada all your assets are deemed to be disposed of and reacquired at that point and you owe capital gains tax on them (if any). Not a problem for the average person with a house (principal residence is exempt) and RRSP (exempt, but subject to non-resident tax on withdrawals), but if you have other investments it could be.

They also like doing it the other way around, i.e. treating you as a non-resident if they decide you owe some Part XIII tax for example. Basically whatever works out with the CRA getting the most money, they favour.