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hello, I called your company with regards to a few tax related questions and was recommended to send you an email. My wife and I want to work in the Cayman Islands for at least a year and up to 3. We own a condo in North Van that we intend to rent while we are away. We also share one joint bank account. We both have individual rrsp. She has a few hundred in savings bonds and i have some in gic's. We also have credit cards with canadian banks. Our questions are: 1 How do we file our income tax when we are away? The 2002 are standard returns since we were living in Canada, but 2003 onwards we will be out of the country. 2 How do we ensure that we have non-residance status in the eyes of Revenue Canada? 3 When we come back, how much of the money we bring back is open to taxes. ie. what is taxable of the money we make down there? 4 Are there any steps we need to take to avoid charges, fines, etc. when we do return? Thank you for your time, Please feel free to respond by phone or email. BXXXXXXXX and OXXXXXXXX Ph-604-987-XXXX --------------------------------------------------------------------------
David Ingram Replies
The questions you have asked
are the kind of thing that requires either a lot of research and reading on
your part or a consultation with someone like myself.
You may read 30 pages I have
written and published on the subject by clicking on
www.centa.com and then reading the
part on US/Canada Taxation.
This part has a section with
a lot of tax cases and explanations about leaving Canada and becoming a
non-resident. It includes Judge Teske's excellent ruling in the Dennis
Lee case plus the Wolf Bergelt, David McLean and other cases as well.
It is almost impossible to
leave for one year and be a non-resident if you do not go to a Tax Treaty
Country. The Grand Caymans are not a treaty country and your intention to
leave for a year means that Canada would likely consider you to be a sojourning
resident.
Basically, you will have to
rent out the condo for a lease of a year or more, give up your Canadian Credit
cards, sell or dispose of your furniture or store it in the USA in bond, get
rid of your car or take it with you, cancel your BC driving licences and BC
Medical.
If you want to go into it in
depth, you should read the cases I have suggested and then phone the office
again, make an appointment and expect to pay about $600 for proper advice,
coaching and technique.
Yours truly
david ingram -
www.centa.com
108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 913-9133 - Fax (604) 913-9123 cell (604) 657-8451 (10 AM to 10 PM 7 days) US / CANADA / MEXICO Income Tax and Working Visa Matters |
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