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:
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