crazy72

Yes, every person who is or was a Canadian tax resident but have moved abroad and severed all ties to Canada (no bank account, credit cards, driver license, health card, property in the storage, real estate, etc. - it is quite hard to meet requirements) can apply for a non-resident status for tax purposes after about a year from moving out.

Jo&Alex

I'd suggest you file a final return for the year you left, clearly stating the date you left Ontario, and also submit the form called "application for determination of status". It's available on the CRA website:

http://www.cra-arc.gc.ca/E/pbg/tf/nr73/README.html

Make sure you keep a copy and some sort of delivery confirmation. This will ensure your status with CRA is OK and they can't say you didn't inform them properly you were leaving. I know you are not planing on coming back, but you just never know, and without this form you can expect a very long and complicated clarifying process if you ever do come back. Unless you are planing to keep filing Canadian taxes

The other thing is that their natural disposition will be not to grant you non-resident status. You pretty much have to cut ALL ties with Canada to be able to convince them...

Anyway, hope this helps. Sorry to hear you are moving away from PEC, Kingston is one of our favourite places on Earth. Aside from Lewes that is.

JAJ

I've seen it done immediately if the requirements are met, giving up accommodation, in some cases surrendering D/L (once foreign one is obtained) etc. And all ties to Canada don't have to be severed - just most of them. Driver license, health card, real estate all important, bank account less so.

Jo&Alex

That is the way it should be, however we had the fact that we kept a bank account at BMO counted as a tie to Canada, and we were determined to be "deemed residents" and asked to pay taxes. Our accountant thinks this was a mistake and should be appealed, but in any case it's another problem to take care of.

The funny thing is that during those years we had no status in Canada, not even a visitor visa for OH, our family could not have VISITED Canada, but we were still residents for tax purposes

JonboyE

Just to clarify this.

There are four tax statuses (word?) for tax purposes:

Resident (factual or deemed) and Non Resident (factual or deemed). They are necessarily the same as your immigration status. A visitor that stays in Canada for more than six months can be a deemed tax resident here.

A factual resident only ceases to be tax resident in Canada if they sever their residential ties. This is determined by the facts of each case. Having a bank account in Canada may, or may not, be an indication of residential ties depending on other circumstances.

You normally indicate your non-resident status by giving the date you left Canada on your tax return for that year. You cannot apply for non-resident status, though as JAJ says above you can apply for a determination of your residential status at any time.

A non-resident may be required to file a Canadian tax return if they have Canadian source income. However, if Part XIII (non resident) tax has been deducted from the income then filing is entirely optional.

jimbloby7

So what happens if i ignore it and do nothing?

Jo&Alex

From our experience: you'll regret no doing it if you ever decide to come back. Our process took too long (sent the form in late and then had to send letters trying to clarify), and once we came back as PRs it became really hard to claim we had left Canada for good (because that's what you need to claim). Now is your chance to have a clean record and not have to worry about it...

jimbloby7

ok, so can we do a tax return online?

iaink

There are a number of restrictions, and you cant use netfile if your are non resident unfortunatley, but I suppose that is yet to be decided. If you ARE non resident and intend to stay that way then I dont see the point in filling anyway.

http://www.netfile.gc.ca/

Here is a list of online apps that will prepare the necessary return form
http://www.netfile.gc.ca/sftwr-eng.html

You will need to get the necessary access code, if you dont already have one.

Penguin_

You cannot do netfile from abroad; you must be a resident of canada to use netfile.

You can of course use tax software (online) to prepare the return then mail it in.

You lose your PR status by not being resident in Canada for at least 2 years in every 5 (or by committing a serious crime)

So you can just do nothing; and you have the option to come back within about 3 years without losing it.