The International Schools Review Forum

To the Canadians working overseas, how do you file your income tax?

We initially filed as normal...we hadn't cut enough ties yet. My wife and I are now non-residents for tax purposes, so we don't file any longer. If you plan on being abroad for a while, I would suggest you sever as many ties as you can so you can avoid paying tax.

cdn, thanks for replying.

Aside from debt, a mortgage/property, or a car, what other things do you believe are considered "ties"?

The Canadian government has a whole list of what they consider primary and secondary ties. They are a bit wishy-washy about the whole thing, which can be incredibly frustrating. There is no hard and fast rule as to whether they will or will not consider you a resident for tax purposes. If you call them they will tell you submit the NR73 form, which is supposed to help determine your eligibility for non-residency....but it isn't a binding document on their part. Anyway, from what I understand these are some of the items in each group of ties:

Primary:
Immediate family (wife, child) staying in Canada
House/property not rented at fair market value

Secondary:
Vehicles
Driver's license
Health card
Passport (if you can believe it)
Membership to social groups
Bank accounts
Credit cards

Debt I'm not too sure of. From what I understand student debt isn't a problem. I would contact a lawyer or accountant who specializes in this sort of thing if you want to be extra careful.