PR card rules when out of Canada - IRPA sec 28.(1)

      Dear Mr.Ingram:
      I do hope you'll find time to answer my concern even if we're
not paying clients YET. I'm trying and trying to send this to the
right e-mail addy but it keeps getting bounced back. Trying one more
time.
      First of all, thank you for the information you provide online
and your mailing lists. A friend forwarded to me a response you gave a
couple planning to move to Canada - specifically to their question:
      "If we are granted PR status how soon do we have to establish
residency?
      Can we continue to reside in the US while we look for employment
in Canada."
      Your response was:
      "You have to move to Canada within 2 years and 11 months of
getting your
      PR card and then stay here for two full years. To maintain a PR
card, you
      have to live in Canada 2 out of 5 years, a much more humane
treatment of
      international people than the "green" resident alien status in
the USA.
      Therefore you can live in the US for a good 2 1/2 years while
you wait for
      employment in Canada."
      I'm a Canadian citizen living with my husband of three years
here in Arizona, and I'm in the process of sponsoring him for his PR
so we can return to live in BC where I have sons, stored furniture
etc.. Your response caught my eye because according to the official
the forms we have one year from the date of the medical examination of
my husband to move to Canada, if approved.
      This is tricky and it has worried us because, on the other hand,
the approval process can take from six months at best to two years, or
even more - which almost ensures that the window of time we have to
make our move (one year from the date of the medical examination) will
be have expired! Catch-22 comes to mind and nightmares of re-applying
for ever and ever!
      I went "WOW!" when I read your answer, but it left me wanting to
be absolutely sure because would be a relief to know for certain that
we won't have to make a mad dash for the Canadian border before the
"one year from the medical examination" expires, as we have to sell
our home here and it's impossible to tell how long that will take.
      Could your please confirm your information about the "your have
to move to Canada within 2 years and 11 months of getting your PR
card"?
      I'm including a copy of the e-mail from the couple and your
response.
      Thanks a million, and from other responses to other folks I also
have a good idea of your expertise in other areas, and corresponding
fees. Good to have someone we can count on!
      Maria
      =========================================
      david ingram replies:
      If you are a Canadian Citizen, your husband's time living with a
Canadian Citizen abroad also counts as legitimate time to keep his PR
card alive.
      Keep on with the paperwork.  Get the PR card.  Come up to Canada
and spend a week having a vacation, getting his Social Insurance
Number and  visiting all the relatives and your sons.
      THEN go back home to the US and take your time coming back
permanently.  If he is living with a Canadian citizen, the 2 year rule
in Canada does NOT apply because he is living with a Canadian Citizen
abroad.
      The same thing would apply if he was working for a Canadian
Company abroad.  A PR's time working for a Canadian Company abroad
also counts as Canadian Time.
      Permanent Residency cards are the property of the crown, are
good for FIVE years and must be returned upon demand.  The five year
period is a moving target however.  One must always fit in to the
rules in the last five year period.
      Section 28.(1) of IRPA (Immigration and Refugee Protection Act)
states: RESIDENCY - A Permanent Resident must comply with a residency
obligation with respect to every five-year period.
      28.(2) Application - The following provisions govern the
residency obligation under subsection (1):
      (a) a permanent resident complies with the residency obligation
with respect to a five year period if, on each of a total of at least
730 days in that five-year period, they are:
          (i)   physically present in Canada
          (ii)  outside Canada accompanying a Canadian citizen who is
their spouse or common-law partner or in the case of a child, their
parent,
          (iii) outside Canada employed on a full time basis by a
Canadian business or in the public service of Canada or of a province.
          (iv)  outside Canada accompanying a permanent resident who
is their spouse or common-law partner or, in the case of a child,
their parent and who is employed on a full-time basis by a Canadian
business or in the public service of Canada or of a province, or
          (v)   referred to in regulations providing for other means
of compliance.
      The regulations and descriptions of businesses, etc., are
referred to in the IRPR (Immigration Refugee Protection REGULATIONS)
at Section 61.(1) where Canadian Business and other things are
referred to.
      An important section here is Section 61.(2) Exclusion - (which
states) For greater certainty, a Canadian business does not include a
business that serves primarily to allow a permanent resident to to
comply with their residency obligations while outside Canada.
      What this means is that the PR can NOT set up a Canadian
business and then go and work for that business in Mexico or Brazil or
England or the United States and use that time to qualify.
      So this answers the question for a PR cardholder working as an
emergency room doctor in an American hospital.  He wanted to set up a
Canadian Corporation which he would work for and the US hospital was
willing to pay the Canadian Corporation for his services. Won't work.
      Copies...<<Dear Mr. Ingram:
      My wife, two children (6 and 8 years old) and I are US citizens.
We took the
      online point assessment and scored 72 and thus on paper we
qualify for PR in
      Canada. Because of the potential benefits of safety, education,
health care
      and retirement, my wife wants the entire family to move to
Canada. Here are
      my concerns:
      1. Are these benefits real and do they conflict with any of the
benefits
      that we may receive in the US. Is the cost of obtaining these
benefits worth
      the cost that we may incur( double taxation? Paying taxes on
social security
      benefit, higher tax rate???)
      2. If we are granted PR status how soon do we have to establish
residency?
      Can we continue to reside in the US while we look for employment
in Canada.
      3. Do we get the benefit for both US social security and OSP and
do we get
      taxed for receiving one or both by US or Canada?
      4. If we have income in California will we be liable for taxes
in both the
      US and Canada?
      Thank you
      SXXXXXX
      david ingram replies
      1. The benefits of living in Canada are great. However, they are
not for all
      people. It is a different place but it is NOT as different to
move to
      Vancouver from San Francisco as it would be to move from San
Francisco to
      the Appalac hians or rural Alabama.
      2, You have to move to Canada within 2 years and 11 months of
getting your
      PR card and then stay here for two full years. To maintain a PR
card, you
      have to live in Canada 2 out of 5 years, a much more humane
treatment of
      international people than the "green" resident alien status in
the USA.
      Therefore you can live in the US for a good 2 1/2 years while
you wait for
      employment in Canada.
      3. You will collect both Social Security and OAS and CPP if you
work in
      Canada. All three pensions will be pro-rated by years of input
and amounts
      of income. If your income is less than $32,000 US (2005 rules),
you will pay
      tax on 85% of your Social Security in Canada while you do not
have to pay
      tax on Social Security until your income passes $32,000 or so in
the USA.
      4. As US citizens you are taxable on your world income no matter
where you
      live. Therefore you will be filing a US tax return even if you
become a
      Canadian Citizen unless you renounce your US citizenship.
Depending on the
      amount and type of income you may pay tax in the states first
and then
      calculate it again in Canada. Canada would usually allow you a
credit for
      all the tax you paid to the US. This credit is deducted from the
Canadian
      tax calculated on (usually) a dollar for dollar basis.
      Sometimes there is a little double taxation. It may be necessary
to move
      investments into Canada.
      What you should do is get us (or someone who can do it) to
prepare a
      pro-forma return based upon your expected income and type of
income. This
      will give you an idea of what to expect. For instance, although
we can make
      mortgage interest deductible in Canada with the proper planning,
it is not
      standard and automatic.
      However, we give better moving expense deductions (except into
Canada from
      another country), union dues, medical expenses and another dozen
deductions
      and exemptions.
      Hope this helps and remember
      Answers to this and other similar questions can be obtained free
on Air
      every Sunday morning.>>
       ============================================
      Answers to this and other similar  questions can be obtained
free on Air every Sunday morning.
      Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of
Dundee Wealth Management and I, David Ingram  host a LIVE talk show
called "ITS YOUR MONEY"
      Those outside of the Lower Mainland will be able to listen on
the internet at
      www.600AM.com
      Local calls are taken at (604) 280-0600 and Long Distance calls
are taken at 1( 866) 778-0600
      Callers to the show are invited to attend free seminars on
financial planning with such specialities as deductible mortgage
interest. They are held at Fred Snyder's Office at 1764 West 7th in
Vancouver - (604) 731-8900 for more information.
      =========================================
      David Ingram's US/Canada Services
      US / Canada / Mexico tax, Immigration and working Visa
Specialists
      US / Canada Real Estate Specialists
      4466 Prospect Road
      North Vancouver,  BC, CANADA, V7N 3L7
      Res (604) 980-3578 Cell (604) 657-8451
      (604) 980-0321 Fax (604) 980-0325
      Email to taxman at centa.com
      www.centa.com www.david-ingram.com
      Disclaimer:  This question has been answered without detailed
information or consultation and is to be regarded only as general
comment.   Nothing in this message is or should be construed as advice
in any particular circumstances. No contract exists between the reader
and the author and any and all non-contractual duties are expressly
denied. All readers should obtain formal advice from a competent and
appropriately qualified legal practitioner or tax specialist in
connection with personal or business affairs such as at www.centa.com.
If you forward this message, this disclaimer must be included."
      Be ALERT,  the world needs more "lerts"
      ==============================
      This from "ask an income tax and immigration expert" from
www.centa.com or www.jurock.com or www.featureweb.com. David Ingram
deals on a daily basis with expatriate tax returns with:
      multi jurisdictional cross and trans border expatriate problems
for the United States, Canada, Mexico, Great Britain, the United
Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan,
China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia,
Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida,
Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan,
Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados,
St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43
states with state tax returns, etc. Rockwall, Dallas, San Antonio and
Houston Texas
      Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and
Immigration Tips, Income Tax and ImmigrationWizard Income Tax and
Immigration Guru Income Tax and Immigration Consultant Income Tax  and
Immigration Specialist Section 216(4) 216(1) NR6 NR-6 NR 6
Non-Resident Real Estate tax specialist expert preparer consultant
expatriate anti money laundering money seasoning FINTRAC E677 E667
4789 4790 TDF-90 Reporting $10,000 cross border transactions
      =========================
      Alaska,  Alabama,  Arkansas,  Arizona,
      California,  Colorado, Connecticut,
      Delaware, District of Columbia,  Florida,
      Garland, Georgia,  Hawaii,  Idaho,  Illinois,
      Indiana,  Iowa,  Kansas,  Kentucky,
      Louisiana,  Maine,  Maryland,
      Massachusetts, Michigan, Minnesota,
      Mississippi,  Missouri,  Montana,  Nebraska,
      Nevada, New Hampshire,  New Jersey,
      New Mexico, New York, North Carolina,
      North Dakota,  Ohio,  Oklahoma,  Oregon.
      Pennsylvania,  Rhode Island,  Rockwall,
      South Carolina, South Dakota, Tennessee,
      Texas,  Utah, Vermont,  Virginia,
      West Virginia, Wisconsin, Wyoming,
      British Columbia, Alberta, Saskatchewan,
      Manitoba, Ontario, Quebec City,
      New Brunswick, Prince Edward Island,
      Nova Scotia, Newfoundland, Yukon and
      Northwest and Nunavut Territories,
      Mount Vernon, Eumenclaw, Coos Bay
      and Dallas Houston Rockwall Garland
      Texas  Taxman and Tax Guru  and wizzard
      wizard - consultant - expert - advisor -advisors consultants -
gurus - Paris Prague Moscow Berlin
      Lima Rio de Janeiro, Santaigo
      ============================
      New York, Boston, Sacramento, Minneapolis, Salem, Wheeling,
Philadelphia, Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg,
Naples, Fort Myers, Cape Coral, Orlando, Atlanta, Arlington,
Washington, Hudson, Green Bay, Minot, Portland, Seattle, St John, St
John's, Fredericton, Quebec, Moncton, Truro, Atlanta, Charleston, San
Francisco, Los Angeles, San Diego, Sacramento, Taos, Grand Canyon,
Reno, Las Vegas, Phoenix, Sun City, Tulsa, Monteray, Carmel,
Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham, Custer, Grand
Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence, Houston,
Albany, Framingham, Cambridge, London, Paris, Prince George, Prince
Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague,
Lisbon, Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort
Meyers,   Berlin, Warsaw, Auckland, Wellington, Honolulu, Maui,
Kuwait, Molokai, Beijing, Shanghai, Tokyo, Manilla, Kent, Winnipeg,
Saskatoon, Regina, Red Deer, Olds, Medicine Hat, Lethbridge, Moose
Jaw, Brandon, Portage La Prairie, Davidson, Craik, Edmonton, Calgary,
Victoria, Vancouver, Burnaby, Surrey, Edinburgh, Dublin, Belfast,
Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo, Brisbane,
Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto, Nanking,
Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish, Churchill,
Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton,
Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis,
Centralia, Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort
Nelson, Fort St James, Red Deer, Drumheller, Fortune, Red Bank,
Marystown, Cape Spears, Truro, Charlottetown, Summerside, Niagara
Falls, Albany
--
No virus found in this outgoing message.
Checked by AVG Anti-Virus.
Version: 7.0.300 / Virus Database: 265.8.8 - Release Date: 2/14/05
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20050217/9002ac43/attachment.htm

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20050214001635.html

No trackback comments for this entry.

0 comments