severing ties with Canada for tax purposes
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Jbiersteker- totally unrelated. I noticed you are bringing hockey equipment. If you are living in the Seoul area, look up CBHK (Canadian Ball Hockey Korea). I played with them while I lived there, and they are a great group of guys and girls. Many of them play on the ice hockey teams too.
Www.cbhk.org
Www.cbhk.org
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IAMBOG: Thanks for the heads-up on Locher Evers, I'll get them off an e-mail. I have a friend who says he can build me a crate, my only problem would be getting it out of Korean customs (which makes the door-to-door a more appealing proposition.
cdn: Thanks for the heads-up on the ball-hockey league. I'm in my mid-40s, I wonder if I would still be able to keep up with the youngsters.
Thanks all!!
cdn: Thanks for the heads-up on the ball-hockey league. I'm in my mid-40s, I wonder if I would still be able to keep up with the youngsters.
Thanks all!!
Canadian Tax
I've been abroad for 5 years...and as mentioned above in other posts the documentation is vague. Essentially the CRA divides ties to Canada into 2 categories (I'm paraphrasing): Residential and other: here is a link:
http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... eng.html#d
here is a further explanation of their categories:
http://www.cra-arc.gc.ca/tx/tchncl/ncmt ... c-eng.html
Essentially I was advised by a Financial Adviser that specializes in Canadian non-resident investments and Trowbridge accounting out of Torornto (@jbiersteker) not to fill out the NR5 form. They advised to cut all major residential ties and as many others as possible. Essentially, you need to live your life as if you never have any intention of returning to Canada again. So, ditch the OHIP (if your from Ontario), homes that can be considered a primary residence, cars in your name, RRSP's can remain you just can't contribute more, library cards, magazine subscriptions, get a mailing address that is a c/o, driver's license (although I keep mine), credit cards (it is better to use credit from the country you reside). On the end where you 'reside' establish a life with many ties so that it could be proven it is your permanent residence.
But, as many have said the CRA approaches each on a case by case basis.
Good luck and good thread. We should all stay informed since governments will inevitably be changing laws as money is getting tight...I know the US is starting to crack down on US citizens having money abroad.
http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... eng.html#d
here is a further explanation of their categories:
http://www.cra-arc.gc.ca/tx/tchncl/ncmt ... c-eng.html
Essentially I was advised by a Financial Adviser that specializes in Canadian non-resident investments and Trowbridge accounting out of Torornto (@jbiersteker) not to fill out the NR5 form. They advised to cut all major residential ties and as many others as possible. Essentially, you need to live your life as if you never have any intention of returning to Canada again. So, ditch the OHIP (if your from Ontario), homes that can be considered a primary residence, cars in your name, RRSP's can remain you just can't contribute more, library cards, magazine subscriptions, get a mailing address that is a c/o, driver's license (although I keep mine), credit cards (it is better to use credit from the country you reside). On the end where you 'reside' establish a life with many ties so that it could be proven it is your permanent residence.
But, as many have said the CRA approaches each on a case by case basis.
Good luck and good thread. We should all stay informed since governments will inevitably be changing laws as money is getting tight...I know the US is starting to crack down on US citizens having money abroad.
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Greetings!!
Just a couple of thoughts:
1. Almost everyone wires money home...before I put the money into RSPs, does anybody think this may be a problem (it wasn't last time).
2. Driver's License is a thorny issue because I may need it when I get home...I don't know how they will look at a Korean Driver's License.
3. My intention is to file my taxes with an accountant until I leave in July and then declare my non-residency...will this be a problem?
4. Does anyone know a good accounting firm in the Greater Toronto area?
Thanks!!
Just a couple of thoughts:
1. Almost everyone wires money home...before I put the money into RSPs, does anybody think this may be a problem (it wasn't last time).
2. Driver's License is a thorny issue because I may need it when I get home...I don't know how they will look at a Korean Driver's License.
3. My intention is to file my taxes with an accountant until I leave in July and then declare my non-residency...will this be a problem?
4. Does anyone know a good accounting firm in the Greater Toronto area?
Thanks!!
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- Joined: Sat Sep 29, 2012 10:38 am
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I would honestly check with a tax expert. My assumption (makes an ass out of me, if not u! LOL) is that because it is a savings plan and there are tax implications at some point, it is off-limits. Then again, I am in a part of the world where there are no taxes, so it might be different from those working in places such as Korea.
I specifically asked about RESPs when we left and was told that while we could not contribute, other family members could, since it was for the children. In the end, we just let what was in there accrue...
I specifically asked about RESPs when we left and was told that while we could not contribute, other family members could, since it was for the children. In the end, we just let what was in there accrue...
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Comment
I like to think that Americans have it the worst in just about everything related to taxes and living overseas, and that usually Canada does just about everything better then the USA (and Europe for that matter), and the Canadian embassy has better parties then the American embassy but this is one time im thinking "Canadians really have it the worse".
The thing is, the Canadian government likes to keep things in shades of grey, not black and white. That said, my principal (who is reliable and trustworthy) says our school has had 120 teachers go through it in the last seven or eight years and, as far as she knows, nobody has had a problem when they returned.