Residency Change Question.

[sly_wolf 199]

Something I have been wondering about. I am planning to activate my visa next Friday since I have to deal with some paperwork for my car and I also have a previously scheduled doctors appointment to go to. For government taxes, medicare and other notfications including car insurance ... what is the official move date? Is it the visa activation date or is it the date that you actually move your stuff from one residence to another? Any comments please.

Sly

[trailmix 77]

Something I have been wondering about. I am planning to activate my visa next Friday since I have to deal with some paperwork for my car and I also have a previously scheduled doctors appointment to go to. For government taxes, medicare and other notfications including car insurance ... what is the official move date? Is it the visa activation date or is it the date that you actually move your stuff from one residence to another? Any comments please.

Sly

You know, from what I have read, this is a gray area and there is no answer that is 100% correct.

There are certain criteria for residency, really only you can decide where you fit in.

I mean you will still have a residence in Canada (if that is where your stuff is) - so does the fact that you activate a visa with intent to move to another country cancel that? Not really, I mean if you were still going to come back and live in Canada for a month or two you would still be considered to be a resident there, even though you have activated your visa.

Under Canada's tax system, your liability for income tax in Canada is based on your status as a resident or non-resident of Canada. Residency must be established before your tax liability to Canada can be determined.

A determination of residency can only be made after all the factors have been considered. Your circumstances have to be reviewed in their entirety to get an accurate picture of your residency.

The residential ties you have or establish in Canada are a major factor in determining residency. Residential ties to Canada include:

a home in Canada;

a spouse or common-law partner and dependants who stay in Canada, while you are living abroad;

personal property in Canada, such as a car or furniture;

social ties in Canada;

economic ties in Canada.

Other ties that may be relevant include:

a Canadian driver's licence;

health insurance with a Canadian province or territory.

Residential ties that you maintain or establish in another country may also be relevant to residency.

Special rules may apply in the following circumstances:

If you do not have residential ties in Canada, you may be a deemed resident if you stayed in Canada for 183 days or more.

You are a government employee outside Canada, or you are a member of the Canadian Forces serving outside of Canada.

The above information is of a general nature only. For more information on residency, see Interpretation Bulletin IT221, Determination of an Individual's Residence Status.

[sly_wolf 199]

Yes, and when it comes to taxes the government does whatever suites them and confuses everyone else.

Sly

[trailmix 77]

Yes, and when it comes to taxes the government does whatever suites them and confuses everyone else.

Sly

The term resident is not defined in the Canadian Income Tax Act so we need to refer to case law. Canadian Tax Courts (the "Courts") have held that an individual is resident in Canada for tax purposes if Canada is the place where he, in his settled routine of his life regularly, normally or customarily lives. Canada Customs and Revenue Agency ("CCRA"), formerly Revenue Canada, has indicated that the determination of an individual's residence status is a question of fact and is based on a number of factors that have been set out by the Courts. These factors are discussed below:

I posted this link in another thread, but I think this article is particularly well written:

Canadian Tax Considerations for Canadians Moving Permanently to the United States

[sly_wolf 199]

Yes, and when it comes to taxes the government does whatever suites them and confuses everyone else.

Sly

The term resident is not defined in the Canadian Income Tax Act so we need to refer to case law. Canadian Tax Courts (the "Courts") have held that an individual is resident in Canada for tax purposes if Canada is the place where he, in his settled routine of his life regularly, normally or customarily lives. Canada Customs and Revenue Agency ("CCRA"), formerly Revenue Canada, has indicated that the determination of an individual's residence status is a question of fact and is based on a number of factors that have been set out by the Courts. These factors are discussed below:

I posted this link in another thread, but I think this article is particularly well written:

Canadian Tax Considerations for Canadians Moving Permanently to the United States

Thanks for the link.

Sly