*The Commerce Journal>>>Canada Taxes

Resident or non-resident for Canadian tax purposes?

I am filing my Canadian taxes from abroad. I moved to S.Korea in June'06 yet declared I was still a resident for the full year so I could extend my income over the 12mths and not just the 6. worked out.

Then we returned to Canada for 4mths, (Jan-Apr'07) I worked p/time and we returned to S.Korea for the duration of the year. I had legal residency in S.Korea from May-20Dec when we left SK on holiday until 20Jan.

We were married 30Dec. I was in Canada 11-20Jan and did the name change detail then gave up my d/license.

Now I am to file my taxes for the 4mths I worked in '07.

Am I a non-resident or resident of Canada? Any idea of correct tax forms I should submit?

I have a further question that is related - See Non-Canadian spouses liability to file Canadian tax.

It sounds to me like you were no longer living in Canada at year end and did not work more than 183 days in 2007 in Canada. As long as you did not have any other ties to Canada such as personal property, residence, bank accounts, etc. then you should file in S Korea.

Again check out the publication below from the CRA website and note page 8 which lists criteria for determining if you are a non-resident and required to pay taxes in Canada.

A cdn taxpayer is generally still considered as a cdn resident for two yrs after departure from cda unless he/she has a CLEAN cut from his cdn economic and social ties. These ties include:

- cdn house
- cdn job or business
- cdn credit cards, driver license, social and professional membership, etc.

If u still maintain the above cdn ties, you may be considered as a cdn resident. Questions to you:

- while u worked in cda from jan-apr 07, did u work or vacationing in SK from may-dec 07?

- did u marry in canada on dec 30, 2007?

- why did u come back to cda on jan 11-20, 2008 - to get rid of your cdn econ and social ties? If so, you could be considered as cdn resident until jan 20, 2008.

This is confusing.
No clear answer.
Tax experts do not know.
Federal and provincial rules are contradictory.
Lawyer are not for black and white answers.
You need to weigh options and go with the more likely one.

Tags

　　Spain Taxes 　　Singapore Taxes 　　Mexico Taxes 　　Ireland Taxes 　　India Taxes 　　Germany Taxes 　　Canada Taxes 　　Australia Taxes 　　Small Business 　　Renting & Real Estate

Related information

Non-Canadian spouses liability to file Canadian tax.?

Canada Revenue Agency CRA does not require your husband to pay taxes in Canada unless he was living there as of December 31st. The key they use in determining this is whether your husband had cut a...

LTD and Maritime deductions on paycheck?

LTD is Long Term Disability. You obviously paid into an LTD account. Doesn't help you now you've left, but if it was part of your standard deductions... No Idea what Maritime is, unl...

If you didnt work this past year do you still have to file an income tax return in canada?

No. You never have to file income taxes unless you owe money or if CRA specifically requests it. You probably should because you might be entitled to various tax credits (rent for example) plus ...

Dividend figures on both T3 and T5?

T3 dividend is generally from a trust, while T5 dividned is generally from a corporation. I guess u have to trust your financial institutionts that they prepare the T3 & T5 correctly. T3 - ...

Do you have to pay the difference in tax rates between provinces on your income?

Oh lucky you. You file and pay income tax based on the province of residence on Dec 31. Therefore you get to file Quebec income tax (as you apparently have discovered)., a pain in the posteri...

How can status indian report self-employed income on tax return ?

As I understand it, only the self employed income earned outside the reserve is taxable and to be included on his or her tax return, while the income earned earned inside the reserve is not taxable...

Capital Gains...how much would someone owe.?

Assuming that you rented the property to your children to live in (ie, not a principal residence to qualify for tax exemption), and assuming that the debtload is $5000 representing interest expense...

Starting new job, no income tax taken off, whats the percentage l should put away each week for taxes??

How much tax you pay depends on how much you earn for the year and which province you live in. For example, earning less than $36000 a yr in Ontario would oay about 21% tax (fed and ontario combin...