Non-Resident of Canada

[muz]

Hello !

I along with my family landed Canada in 2012 and we stayed there only for 12 days.

At that time we applied for PR cards and SIN Cards. And also opened a Bank Account along with credit card with RBC. We did not apply for any Health Card and Driver’s License.

Now we are going back to Canada by end of June for permanent settlement and to fulfill residency obligations.

Based on my above information , will I be considered a non-resident of Canada by Canadian Revenue Agency?

Do I have pay taxes on the money (earned outside Canada ) which I will transfer to Canada for settlement purposes?

MUZ

[SettlementOrgMod]

Hello Muz,

Thank you for sharing your situation with us.

You can find some general information in our Settlement.Org Do I have to file a tax return? article.

Here are some excerpts,

According to Canada Revenue Agency (CRA), the most important factor in determining your residency in Canada for tax purposes is whether or not you maintain residential ties with Canada while you are abroad.

If you maintain residential ties in Canada, you may still be considered a Canadian resident for tax purposes. In this case, you have to pay Canadian income tax on your worldwide income.

If you break your Canadian residential ties and leave Canada, you can become a Canadian resident for tax purposes again when you move back to Canada and re-establish your residential ties.

Generally, your residency status and tax obligations can only be determined on a case-by-case basis after taking into consideration all of the relevant facts.

and

You become a resident of Canada for tax purposes when you establish significant residential ties in Canada, usually on the date you arrive in Canada.
Residential ties include:

-A home in Canada
-A spouse or common-law partner and dependants who move to Canada to live with you
Personal property in Canada, such as a car or furniture
-Social ties in Canada

Other ties that may be relevant include:

-A Canadian driver’s licence
-Canadian bank accounts or credit cards
-Health insurance with a Canadian province or territory

Find out more about residential ties on the Canada Revenue Agency (CRA) website.

You may want to contact the Canada Revenue Agency (CRA) directly for some more information that is specific to your own situation. They have an International tax and non-resident enquiries number you can call from outside Canada before you arrive if you like.

I hope this information is helpful. Please let us know if you have further questions and if there is any follow up to your question/situation.

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Anna
Settlement.Org Content and Information/Referral Specialist, CIRS
Settlement.Org