QUESTION:
I been reading so many articles and I can assume that I am not
entitled to be called "non-resident" of Canada since I am landed
immigrant in Canada in 2004 and after 4 months stay I went back
to Tokyo to work. I hold a 3 yrs working visa and rented an
apartment. But my husband stays in Canada and maintains 3 bank
account (saving,credit,checking). I visit Canada twice a year for
3 wks in total.
My problem is I filed a 0 income in Canada and did not declare my
world income because I know I am a resident and they will withold
46-48% of tax. Since the salary is high in Japan, the cost of
living is high too. The 46% is too much as I do not even have
that amount for savings (I can only save 20-30% out of my monthly
income excluding living expenses).
My question is, if I voluntary give-up my residency to stop
paying taxes, will my husband lose his residency too? How much
tax % I owe them if my world income is 130,000 ~ 145,000 a year?
Im really confussed.
Your response is highly appreciated.
---------------------------------------
david ingram replies:
In my opinion, you are NOT a taxable resident of Canada as
described. You have only lived in Canada for four months and
even though your husband is here, you are not and Japan has a
treaty with Canada. Although married to a Canadian resident, you
are not spending much time with him. You are likely a factual
resident of Canada who has to report her world income to Canada
but gets to deduct it on line 256 of your return under Article IV
of the Japan / Canada Income Tax Convention which reads as
follows:
Article 4
1. For the purposes of this Convention, the term "resident of a
Contracting State" means any person who, under the laws of that
Contracting State, is liable to tax therein by reason of his
domicile, residence, place of head or main office, place of
management or any other criterion of a similar nature.
2. Where by reason of the provisions of paragraph 1 a person is
a resident of both Contracting States, then the competent
authorities of the Contracting States shall determine by mutual
agreement the Contracting State of which that person shall be
deemed to be a resident for the purposes of this Convention.
=======================
Your position in Japan does NOT jeopardize your husband's status
as a PR. It does jeopardize your own PT status and "paying tax
to Canada while not physically being in Canada" will NOT keep
YOUR PR card alive either.
To keep your card and Canadian PR status alive you must:
1. Be physically present in Canada for 24 months out of the 60
months after you received your card.
2. Be in the other country as the spouse of a Canadian citizen
3. Be in the other country because you were transferred there
by a Canadian employer who you are still working for.
So, the most you can be out of Canada is three years.
What is important is that your husband NOT claim you as a
dependent. If you reported zero income and he claimed you as a
dependent as a result, that HAS TO BE fixed.
=========================
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