Tax And Residency
#1
After speaking to numerous people I'm totally and utterly confused about when I should start paying Canadian rather than UK tax. For obvious reasons I want to pay UK tax rather than Candian tax for as long as possible. Any further input would be much appreciated.
I should if all goes to plan, I should be starting work in Calgary (Permant staff position) on a temporary work permit on 1st June. I will being applying for permanent residence immedately upon arrival.
I will be living in rented accomodation until the family house is sold in the UK, at which point the rest of the family will wend their way to Calgary. Since my permanent residence will be in the UK until then should I pay UK or Canadian tax for this period. If I have to pay Canadian tax until then, what about my wife since she will be living in the UK I assume that she should pay UK tax until she arrives in Calgary.
I've also heard one argument that I should pay UK tax until permanent residency is granted.
I should if all goes to plan, I should be starting work in Calgary (Permant staff position) on a temporary work permit on 1st June. I will being applying for permanent residence immedately upon arrival.
I will be living in rented accomodation until the family house is sold in the UK, at which point the rest of the family will wend their way to Calgary. Since my permanent residence will be in the UK until then should I pay UK or Canadian tax for this period. If I have to pay Canadian tax until then, what about my wife since she will be living in the UK I assume that she should pay UK tax until she arrives in Calgary.
I've also heard one argument that I should pay UK tax until permanent residency is granted.
#2
My husband went to work in Canada on a temp work permit in June 2001 for 3 years. He started to pay canadian tax from the minute he arrived. I remained in the UK for a few months, selling houses and the like and paid Uk tax. When we left the UK we filled in form P85 and sent to our tax office to say that we were non resident for tax purposes. We had no ties to the UK, sold house etc etc. If you intend to apply for PR and settle in Canada long term my own personal view is that you are better off being in the Canadian tax system. Alberta is certainly one of the cheaper provinces for income tax. beware if you move part way through the year because you are taxed in the province where you are resident on 31st December. Got stung quite badly one year after a move from AB to NS. Revenue Canada were not our favourite folk!!







