Canadian Non-Resident Organizer: Fill & Download for Free

You become resident in Canada when you either a) sojourn by spending more than 183 days physically present in Canada OR b) have significant residential ties to Canada (Determining your residency status).I am assuming this is a question about how native born, life long residents of Canada can become non-resident in Canada for tax purposes. When asked this question, I always draw the analogy of when does Soup (aka resident) become Broth/Water (aka non-resident). As one takes away various vegetables from the soup, at some point one can argue that they have boiled vegetables (still tax resident) . If they take away all vegetables then they clearly have Broth/Water (non-residence).The Tax Act and Tax Authority (CRA) break down vegetable (ties) into two categories…Significant and SecondarySignificant residential ties to Canada include:a home in Canada;a spouse or common-law partner in Canada; anddependants in Canada;Secondary residential ties that may be relevant include:personal property in Canada, such as a car or furniture;social ties in Canada, such as memberships in Canadian recreational or religious organizations;economic ties in Canada, such as Canadian bank accounts or credit cards;a Canadian driver's licence;a Canadian passport; andhealth insurance with a Canadian province or territory.If the person still has a single significant residential tie, then they are still soup (i.e. tax resident). If they get rid of all of the significant ties but still have a number of secondary ties then they may have boiled vegetables, but if challenged CRA would likely still deem them tax resident. If they want to survive any challenge then they a) get rid of all the vegetables AND b) establish residential ties with another jurisdiction.Although one can complete a form (NR73 Determination of Residency Status (leaving Canada)) which one MAY complete and send to CRA…IT IS NOT A REQUIREMENT TO BECOME NON-RESIDENT! In fact most advisors will recommend NOT to submit the form. Rather, they will advise you to get rid of all of the significant ties and as many of the secondary ties as possible. Then take the position in your terminal tax filing that you are non-resident and make CRA challenge that position if they feel they have grounds. Completing the form gives CRA information gratuitously that you are not otherwise obligated to provide and puts your non-residence unnecessarily into the discretion of a government official.As noted by others, this is NOT a DIY project. In fact one would be foolish not to seek and listen to professional advice. This is especially the case if the individual also has any of the following factors:a) Registered Retirement Savings Plan - Wikipedia, pension or any other type of deferred investment plan;b) On-going business or Canadian source income;c) Remaining Canadian situs property including real estate, share ownership etc.; ord) Moving to another taxing jurisdiction: In the example given the individual is moving out of Canada and into another taxing jurisdiction (i.e. the US). This is also a jurisdiction which has a tax treaty with Canada which has tie breaker rules (where both jurisdictions consider the person to be a tax payer) and treaty election provisions.In summary, I suggest you run, not walk, to a qualified advisor.

You become resident in Canada when you either a) sojourn by spending more than 183 days physically present in Canada OR b) have significant residential ties to Canada (Determining your residency status).I am assuming this is a question about how native born, life long residents of Canada can become non-resident in Canada for tax purposes. When asked this question, I always draw the analogy of when does Soup (aka resident) become Broth/Water (aka non-resident). As one takes away various vegetables from the soup, at some point one can argue that they have boiled vegetables (still tax resident) . If they take away all vegetables then they clearly have Broth/Water (non-residence).The Tax Act and Tax Authority (CRA) break down vegetable (ties) into two categories…Significant and SecondarySignificant residential ties to Canada include:a home in Canada;a spouse or common-law partner in Canada; anddependants in Canada;Secondary residential ties that may be relevant include:personal property in Canada, such as a car or furniture;social ties in Canada, such as memberships in Canadian recreational or religious organizations;economic ties in Canada, such as Canadian bank accounts or credit cards;a Canadian driver's licence;a Canadian passport; andhealth insurance with a Canadian province or territory.If the person still has a single significant residential tie, then they are still soup (i.e. tax resident). If they get rid of all of the significant ties but still have a number of secondary ties then they may have boiled vegetables, but if challenged CRA would likely still deem them tax resident. If they want to survive any challenge then they a) get rid of all the vegetables AND b) establish residential ties with another jurisdiction.Although one can complete a form (NR73 Determination of Residency Status (leaving Canada)) which one MAY complete and send to CRA…IT IS NOT A REQUIREMENT TO BECOME NON-RESIDENT! In fact most advisors will recommend NOT to submit the form. Rather, they will advise you to get rid of all of the significant ties and as many of the secondary ties as possible. Then take the position in your terminal tax filing that you are non-resident and make CRA challenge that position if they feel they have grounds. Completing the form gives CRA information gratuitously that you are not otherwise obligated to provide and puts your non-residence unnecessarily into the discretion of a government official.As noted by others, this is NOT a DIY project. In fact one would be foolish not to seek and listen to professional advice. This is especially the case if the individual also has any of the following factors:a) Registered Retirement Savings Plan - Wikipedia, pension or any other type of deferred investment plan;b) On-going business or Canadian source income;c) Remaining Canadian situs property including real estate, share ownership etc.; ord) Moving to another taxing jurisdiction: In the example given the individual is moving out of Canada and into another taxing jurisdiction (i.e. the US). This is also a jurisdiction which has a tax treaty with Canada which has tie breaker rules (where both jurisdictions consider the person to be a tax payer) and treaty election provisions.In summary, run don’t walk to a qualified advisor.

You become resident in Canada when you either a) sojourn by spending more than 183 days physically present in Canada OR b) have significant residential ties to Canada (Determining your residency status).I am assuming this is a question about how native born, life long residents of Canada can become non-resident in Canada for tax purposes. When asked this question, I always draw the analogy of when does Soup (aka resident) become Broth/Water (aka non-resident). As one takes away various vegetables from the soup, at some point one can argue that they have boiled vegetables (still tax resident) . If they take away all vegetables then they clearly have Broth/Water (non-residence).The Tax Act and Tax Authority (CRA) break down vegetable (ties) into two categories…Significant and SecondarySignificant residential ties to Canada include:a home in Canada;a spouse or common-law partner in Canada; anddependants in Canada;Secondary residential ties that may be relevant include:personal property in Canada, such as a car or furniture;social ties in Canada, such as memberships in Canadian recreational or religious organizations;economic ties in Canada, such as Canadian bank accounts or credit cards;a Canadian driver's licence;a Canadian passport; andhealth insurance with a Canadian province or territory.If the person still has a single significant residential tie, then they are still soup (i.e. tax resident). If they get rid of all of the significant ties but still have a number of secondary ties then they may have boiled vegetables, but if challenged CRA would likely still deem them tax resident. If they want to survive any challenge then they a) get rid of all the vegetables AND b) establish residential ties with another jurisdiction.Although one can complete a form (NR73 Determination of Residency Status (leaving Canada)) which one MAY complete and send to CRA…IT IS NOT A REQUIREMENT TO BECOME NON-RESIDENT! In fact most advisors will recommend NOT to submit the form. Rather, they will advise you to get rid of all of the significant ties and as many of the secondary ties as possible. Then take the position in your terminal tax filing that you are non-resident and make CRA challenge that position if they feel they have grounds. Completing the form gives CRA information gratuitously that you are not otherwise obligated to provide and puts your non-residence unnecessarily into the discretion of a government official.As noted by others, this is NOT a DIY project. In fact one would be foolish not to seek and listen to professional advice. This is especially the case if the individual also has any of the following factors:a) Registered Retirement Savings Plan - Wikipedia, pension or any other type of deferred investment plan;b) On-going business or Canadian source income;c) Remaining Canadian situs property including real estate, share ownership etc.; ord) Moving to another taxing jurisdiction: In the example given the individual is moving out of Canada and into another taxing jurisdiction (i.e. the US). This is also a jurisdiction which has a tax treaty with Canada which has tie breaker rules (where both jurisdictions consider the person to be a tax payer) and treaty election provisions.In summary, run don’t walk to a qualified advisor.