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To land.. or not to land... that is the question

To land.. or not to land... that is the question

Old Nov 18th 2017, 10:34 am
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Default To land.. or not to land... that is the question

Ok, so here we are in the final furlong of our move. I have tried to look through Wiki for some of this, so if I have missed something, a pointer is all I need...

Well, to set the scene, aI got my COPR in the mail this week, however I am wondering what advice folks on here would give in relation to landing, and if I shoudl do it the next trip. I am booked to fly out Mid Dec to be with family who already have moved earlier in the year. I was planning on Landing this trip, however I am now wondering should I do it now or later as I have until 28Feb to land. From what I have read, the day I land is the day I become liable for tax etc in Canada. Have I got that right?

If the above is correct, does that mean I would need to submit a tax return for 2017 then?

So, onto some other considerations

1. As stated before, COPR arrived in mail this week and I have until 28Feb to activate/land.
2. I fly out in mid Dec to be with family and home again 02Jan
3. Work has purchased a machine and I have been asked to fly out to Canada to discuss the design. If I land in Dec, then I believe I am in PR Limbo Land.
4. Our plans are for family to come home for a 100 b'day party at the start of Feb and I return back with them around the 12Feb.
5. The house here is currently going through the selling process, but I can't see it being complete by mid Dec

Given the above facts, would I, should I, or is it possible to not land this trip, and do the business trip and then land before the end of Feb?

From what I can read, the tax implications or fairly major when it comes to CGT and selling the house here after I land in Canada. From what I can see I will need an accountant for my first tax return in Canada

Hopefully I have made sense above
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Old Nov 18th 2017, 10:51 am
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Default Re: To land.. or not to land... that is the question

I have no idea about the tax implications, and won't comment on them.

Once you land, your eTA should be cancelled. It will take about 2 months for your first PR card to be issued. While in that period, you would be unable to fly back to Canada without either a PR Travel Document (obtained at an Embassy/High Commission while outside Canada), or flying back via the USA.

If you are flying repeatedly between Canada & the UK in that two month period, flying would be inconvenient. However, if your planned last flight in is only 16 days before your COPR expires, then you would risk any delay (eg a family emergency, an accident) preventing your landing, and having to start from scratch.

Up to you how you prioritize those.
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Old Nov 24th 2017, 10:07 am
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Default Re: To land.. or not to land... that is the question

Not sure if it is on interest to anyone here, but from the tax side I have been advised to wait until the new year before 'landing' as the date you land is the date you are deemed to be resident for tax, so in effect I would need to do a tax return for 17days of this year. Given than the house here will be closed after 01 Jan, it is best holding off etc.. soo after all the excitment of getting the COPR I will have to wait on getting that stamp.
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Old Nov 24th 2017, 12:36 pm
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Default Re: To land.. or not to land... that is the question

Originally Posted by AshMyl
Not sure if it is on interest to anyone here, but from the tax side I have been advised to wait until the new year before 'landing' as the date you land is the date you are deemed to be resident for tax, so in effect I would need to do a tax return for 17days of this year. Given than the house here will be closed after 01 Jan, it is best holding off etc.. soo after all the excitment of getting the COPR I will have to wait on getting that stamp.
Not sure where your advice came from, but landing as a PR alone does not make you tax resident. If you land and stay with the intention of living in Canada, you would be tax resident. If you land and leave a couple of weeks later, not a tax resident. Would not be a good idea set up bank accounts, register for SIN etc. during landing trip though.

https://www.canada.ca/en/revenue-age...cy-status.html

Even as a tax resident for the last 17 days, if you had no income it is not necessary to file a return, although without filing you would possibly miss out on some benefits.

You may want to check UK CGT if you sell after leaving the UK. In Canada, the value of the property is set as your base value on the day you become tax resident (in CAD). Any gain after becoming tax resident is taxable as CGT (calculated in CAD). Also, if you hold onto any funds in GBP after becoming tax resident, any improvement in the FX is taxable as CGT.

Last edited by Aviator; Nov 24th 2017 at 12:39 pm.
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Old Nov 25th 2017, 10:52 am
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Default Re: To land.. or not to land... that is the question

Thanks for the response. As I need to fly out to Canada on business for work the 2nd week of January, and then do my final flight mid Feb, I think it is better waiting until mid Feb to land, then the house will be sold and I will not be in PR limboland in relation to flying back into Canada while waiting for PR card (which I know I can't do).
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Old Nov 27th 2017, 5:27 am
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Default Re: To land.. or not to land... that is the question

+1 that tax status commences when you establish residence, not when you land. My husband landed 9 months before he established residence and filled out his tax forms accordingly.

(As a random aside, landing in the autumn in Canada is super tax-efficient because then you are only resident in the UK for about 1/3 of the year, so lower tax bracket, and then the same for Canada. Just in case you care about that sort of thing, haha!)
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Old Nov 28th 2017, 10:44 am
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Default Re: To land.. or not to land... that is the question

Originally Posted by SchnookoLoly
+1 that tax status commences when you establish residence, not when you land. My husband landed 9 months before he established residence and filled out his tax forms accordingly.

(As a random aside, landing in the autumn in Canada is super tax-efficient because then you are only resident in the UK for about 1/3 of the year, so lower tax bracket, and then the same for Canada. Just in case you care about that sort of thing, haha!)
So did hubby land and apply for PR card on that trip, but left the SIN until he established residence? I could do that and wait for the card to be delivered to the Canadian address. Just change dmy flight home in Jan so I am staying on now until my work trip is over, then flying home 10days later than expected.
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Old Dec 5th 2017, 2:40 am
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Default Re: To land.. or not to land... that is the question

Originally Posted by AshMyl
So did hubby land and apply for PR card on that trip, but left the SIN until he established residence? I could do that and wait for the card to be delivered to the Canadian address. Just change dmy flight home in Jan so I am staying on now until my work trip is over, then flying home 10days later than expected.
Errrrr honestly I can't remember when he did his SIN... I think it was on an earlier trip (either the landing trip or the visit trip where he didn't establish residency) so that he had it ready to go ahead of interviews and job offers.
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Old Dec 5th 2017, 3:21 am
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Default Re: To land.. or not to land... that is the question

Originally Posted by AshMyl
So did hubby land and apply for PR card on that trip, but left the SIN until he established residence? I could do that and wait for the card to be delivered to the Canadian address. Just change dmy flight home in Jan so I am staying on now until my work trip is over, then flying home 10days later than expected.
Whether or when you get your SIN does not determine tax residence. Personally, I would try for one once you have landed to activate your PR as it gets one thing out of the way.

There are a mountain of things to get set up once you land for good as I am finding out!
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Old Dec 6th 2017, 10:18 am
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Default Re: To land.. or not to land... that is the question

Originally Posted by SchnookoLoly

(As a random aside, landing in the autumn in Canada is super tax-efficient because then you are only resident in the UK for about 1/3 of the year, so lower tax bracket, and then the same for Canada. Just in case you care about that sort of thing, haha!)
Great advice on UK tax. I believe Canadian tax is pro rated however? Still save a bundle from UK side
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Old Dec 6th 2017, 10:37 pm
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Default Re: To land.. or not to land... that is the question

Still keeps you in a lower tax bracket for the year overall, the brackets don't prorate. (Similar situation having a baby in summer, haha, two years of paying a much lower tax rate.)
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