I have two "special case" questions regarding taxes. Any links and tips will be appreciated.

1. I am a PR and worked shortly (as a PR) in Canada in 2005. Therefore I filed taxes in 2006 for the previous year. However, I left Canada at the end of 2005 and so i haven't worked there in 2006. My questions is - do i still need to file taxes now for the 2006 year? Or does the fact that i did not work and live there mean that i shouldn't file taxes?
(i intend on moving back to Canada this year)

2. I am going to Canada because of the residency requirement ticking. When i move back I will still be employed by the company i work for in Europe - i will work remotely. Thus i will pay taxes in Europe, get my salary in Europe, and just transfer the money to my canadian account. I will have an office in canada as a "guest researcher" at a canadian insittution. Does anyone have any idea how the Canadian taxation would work out in this case? Would i file taxes in Canada? Would i pay taxes? How would i claim my income?

Thanks a lot for any advice.

I'm no expert on Canadian taxes but according to:

http://www.cra-arc.gc.ca/tax/nonresi.../nonres-e.html

if you're resident 183 days per year in Canada you're tax resident. Hence the Canadian government has a right to tax you on your worldwide income. The fact that you earn your money in Europe does not make any difference. Canada has double taxation agreements with a lot of countries so you would not pay income tax in both countries but don't expect to be able to pay tax in Europe and live in Canada for free

Thanks, stoobee1! Unfortunately i see that the information you are referring to is relevant to non-residents of Canada. I am a permanent resident and would look for similar information relating to residents... but haven't been able to find it yet...

I was in a similar position for the first 2 years here, basicly you need to file a tax return to both countries, both consider you to be a resident untill you have lived abroad (and don't have any financial ties back in the UK) for at least 12 months. By the sounds of it you hav'nt.

Now here is your good advice, you are going to need an international tax accountant, one who is familiar with both UK and Canada tax, you generally only find them at the big firms, you are going to pay through the nose for the advice. You will pay which ever tax is the highest.

But if the advise is right, you won't have to pay it twice

Good Luck, cause your going to need it.

1. If you established tax residency in Canada then you remain liable for Canadian taxes on your worldwide income until you can show the CRA that you have severed residential ties with Canada.

2. As a Canadian tax resident you are liable to Canadian tax on worldwide income.

Any UK tax payable should normally be allowed as an offset on Canadian tax. In particular, on the Canadian side you should check if there are any provincial tax obligations - or just federal.

Not a simple situation.

Thank you all for your advise. I was finally able to get through and speak with someone at revenue canada. for those who might have similar concerns, here's the answers the agent gave me:

1. if i have received some income from Canada in 2006, then i need to file taxes. if no income from Canada, then no filing is necessary.

2. when i file my 2007 taxes, i would report the worldwide income and the taxes i paid abroad, and i would receive a foreign tax credit - an offset for the tax paid abroad.

1. If you had income, from anywhere, during the part of 2006 that you were in Canada, and it was enough for you to be owing tax here, you file.

2. Keep all the paperwork relating to the tax credit. I was audited last year on precisely that matter. BTW, keep all tax-related papers for 7 years.

Thanks gents found that very helpful...i will be working remotely aswell for the same companies as i do here. So at least i know where to start.

hi Souvenir,

i have not spent more than 2 weeks in Canada in 2006. the rest of the year i lived and worked abroad. i'd think that what they told me is reasonable. do you think otherwise?

this is a really good tip - thanks - will definitely keep this in mind.

It's where you are resident for tax purposes that really matters.