Owning a Tax Free Saving Account as a non-resident

[Earl_LOCk]

I worked overseas for many years and declared non-resident during that period. I moved to Canada in 2017 permanently and file Canadian tax returns for 4 years with a Canadian address. I don’t live and work in another country any more.

I opened a Tax free saving account in 2020. CRA still taxed me for “owning a Tax Free Saving Account as a non-resident.”

Based on the above fact, I thought CRA assume I am a Canada resident. What should I do?

[SettlementOrgMod]

Hello There,

Thank you for sharing your situation and question with us.

We can appreciate that you would be interested in this type of information. For information specific to your situation, it is best that you contact the Canada Revenue Agency directly. You can contact them using this phone number: 1-800-387-1193 (Canada and United States)

You may also find helpful information in the Settlement.Org article, Do I have to file a tax return?
Here is an excerpt:

Canadian residency for tax purposes is not the same as residency for immigration purposes.
What if I am outside of Canada?
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.

There are helpful guides in this article that would support you in determining residency status for tax purposes.

We hope this information is helpful. If you have any additional questions, please feel free to post them here.

Sincerely,

Your Settlement.Org Team