Comments on: Departure Tax http://wheredoesallmymoneygo.com/departure-tax/ A personal finance blog written by Preet Banerjee Wed, 23 May 2012 05:38:46 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: walter http://wheredoesallmymoneygo.com/departure-tax/#comment-2073 walter Sun, 02 Nov 2008 18:40:17 +0000 http://www.wheredoesallmymoneygo.com/?p=729#comment-2073 Hi folks Don't forget that your RRSP must be liquidated as well. CRA states that a RRSP is only for resident canadians and no for non residents or foriegnors, although this policy does have a large hole in it as one could move to either the US and or the UK and not require to close the RRSP account. Plus if you move to the UK you can withdraw from your RRSP and not be subject to the withholding amounts (starting at 5%). Hi folks
Don’t forget that your RRSP must be liquidated as well. CRA states that a RRSP is only for resident canadians and no for non residents or foriegnors, although this policy does have a large hole in it as one could move to either the US and or the UK and not require to close the RRSP account. Plus if you move to the UK you can withdraw from your RRSP and not be subject to the withholding amounts (starting at 5%).

]]> By: Preet http://wheredoesallmymoneygo.com/departure-tax/#comment-2072 Preet Wed, 16 Jul 2008 20:16:02 +0000 http://www.wheredoesallmymoneygo.com/?p=729#comment-2072 @epps - Sure, you can have a non-resident investment account. I'll defer you to use a professional tax advisor for detailed cross-border taxation issues though... :) @epps – Sure, you can have a non-resident investment account. I’ll defer you to use a professional tax advisor for detailed cross-border taxation issues though… :)

]]> By: epps http://wheredoesallmymoneygo.com/departure-tax/#comment-2071 epps Mon, 14 Jul 2008 23:49:08 +0000 http://www.wheredoesallmymoneygo.com/?p=729#comment-2071 A timely post this is. I was just considering taking a job in the states. I havent researched too deeply in to it yet, but I was wondering about the effects of non-residency on a non-registered account. More specifically, would I be able to transfer funds into it and purchase securities while being non-resident? I would plan to return to Canada eventually so it would be better if I could have the unrealized cap gain continue to grow in Canada instead purchasing them in the US and facing tax upon departure. Thanks A timely post this is. I was just considering taking a job in the states. I havent researched too deeply in to it yet, but I was wondering about the effects of non-residency on a non-registered account. More specifically, would I be able to transfer funds into it and purchase securities while being non-resident? I would plan to return to Canada eventually so it would be better if I could have the unrealized cap gain continue to grow in Canada instead purchasing them in the US and facing tax upon departure.

Thanks

]]> By: Preet http://wheredoesallmymoneygo.com/departure-tax/#comment-2070 Preet Mon, 14 Jul 2008 13:41:23 +0000 http://www.wheredoesallmymoneygo.com/?p=729#comment-2070 The onus is on you since if you retain residency status in Canada you have to pay tax on your worldwide income, whereas if you are a non-resident you only owe tax to Canada on your Canadian sourced income. Since it would be better not to pay tax twice, you would want to prove to the Government you are non-resident. I'll be covering that off in a future post, but essentially you need to sever all ties with Canada (credit cards, memberships, driver's licenses, etc), in addition to spending 'substantially more than' 183 days outside of Canada. The final decision is actually made on a case by case basis I believe. As always, please consult with a professional tax advisor for advice particular to your own situation, and for clarification on anything appearing on this site for entertainment purposes only. :) The onus is on you since if you retain residency status in Canada you have to pay tax on your worldwide income, whereas if you are a non-resident you only owe tax to Canada on your Canadian sourced income. Since it would be better not to pay tax twice, you would want to prove to the Government you are non-resident. I’ll be covering that off in a future post, but essentially you need to sever all ties with Canada (credit cards, memberships, driver’s licenses, etc), in addition to spending ‘substantially more than’ 183 days outside of Canada. The final decision is actually made on a case by case basis I believe.

As always, please consult with a professional tax advisor for advice particular to your own situation, and for clarification on anything appearing on this site for entertainment purposes only. :)

]]> By: fathersez http://wheredoesallmymoneygo.com/departure-tax/#comment-2069 fathersez Mon, 14 Jul 2008 13:31:19 +0000 http://www.wheredoesallmymoneygo.com/?p=729#comment-2069 How do the Govt decide you are leaving to be a non resident? Do you declare or do they just make a call depending on the number of days you are abroad. I have paid airport departure taxes, but have not heard about this departure tax. How do the Govt decide you are leaving to be a non resident? Do you declare or do they just make a call depending on the number of days you are abroad.

I have paid airport departure taxes, but have not heard about this departure tax.

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