- Canadian Tax Resource Blog - http://blog.taxresource.ca -

How To Become A Non-Resident

A recent visitor asked me what was required in order to become a non-resident of Canada for tax purposes:

“I wish to become a Canadian non resident officially and need to find out what paper work I need to fill out to make this happen. I have severed all my ties in Canada and am currently living and working in Mexico. Please advise me as what I need to do next?”

Residency Is A Question Of Fact

The concept of residency is not and election or declaration but a question of fact. The second link below explains how we determine if you are a resident of Canada for tax purposes. If you feel you have fulfilled these requirements you can look at the third link and ask the CRA for a review of your status.

Once residency is officially severed and you have filed your final tax return and paid the tax bill or posted security, you no longer pay tax in Canada.

Tax Consequences

Note that becoming a non-resident [1] carries with it tax consequences: You will be deemed to have sold all of your assets at its fair market value on the date you became a non-resident. You will be liable to pay the tax on any capital gains.

If you need assistance bringing your tax situation up-to-date, or are planning on leaving Canada and want to sever your ties properly for tax purposes, please contact me for a consultation [2].