Home Forums General Financial, Tax and Insurance Canadians paying tax Reply To: Canadians paying tax

Reply To: Canadians paying tax

Home Forums General Financial, Tax and Insurance Canadians paying tax Reply To: Canadians paying tax

#14327
TheBaron
Participant

Subhuman, I’m not disagreeing with you on the corporation front; I’m a director of 3, in three different countries. 😉 I’m a permanent resident living in B.C., and take much pride in legally paying less tax than my better half; who only works part-time!
What people should be aware of is that Canada has some very stringent tax rules for people working overseas, and without an adequate corporate structure behind you, you’d be better off working at home.
The thread started with Subseaaddicted requesting info about the tax situation of working in Dubai. To take advantage of the 0% income tax rate in the UAE, he would have to achieve ‘Non-Resident Status’ in Canada, which involves severing all ties with Canada to the complete satisfaction of the CCRA. This, btw, goes as far as proving you do not have a common-law spouse remaining in Canada!!! And yes, all your club memberships must be canceled, as well as a myriad of other petty devices. I’m pretty sure that Subseaaddicted does not want to take these draconian measures, especially for the kind of wages OI offer. If I were in his shoes I’d look at filing honest tax returns and have an accountant go to work on it to reduce his liability to 10-20%pa.
For a giggle, have a look at these ‘ties’ that could make your life difficult before the CCRA might consider you Non-Resident. Remember, these come after the major ‘ties’, like house, automobiles, spouse, kiddies etc.:
(a) personal property in Canada (such as furniture, clothing,
automobiles and recreational vehicles),
(b) social ties with Canada (such as memberships in
Canadian recreational and religious organizations),
(c) economic ties with Canada (such as employment with a
Canadian employer and active involvement in a
Canadian business, and Canadian bank accounts,
retirement savings plans, credit cards, and securities
accounts),
(d) landed immigrant status or appropriate work permits in
Canada,
(e) hospitalization and medical insurance coverage from a
province or territory of Canada,
(f) a driver’s license from a province or territory of
Canada,
(g) a vehicle registered in a province or territory of Canada,
(h) a seasonal dwelling place in Canada or a leased
dwelling place referred to in ¶ 6,
(i) a Canadian passport, and
(j) memberships in Canadian unions or professional
organizations.
[Source:IT-221R3 (Consolidated)]

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