[canuckinhk]

We are considering returning to Canada after being in Asia for 10+ years. Despite being away so long, we are still nauseous over our residency status. If we are HK permanent residents, they (the CA gov.) can't claim residency in Canada, even though we have a holiday home there.... right?? I'm 99% sure we're fine, but have that little niggling fear.

Now, we've been advised by our Canadian lawyer here in HK that it would be wise to set up a company/retirement pension plan here in HK, with a trustee, that we could transfer our mpf funds over to. We're told we could use the funds for investments worldwide, without income tax implications. Then, upon retirement, we could bring the funds over to Canada as a tax free pension and perhaps put it into an RRSP over there.

Has anyone done this before or have experience in this area? Any comments or advice would be greatly appreciated!

[Kristin Rogers]

As a rule of thumb, you need $US1,000,000 in your pension scheme to make it worth it. It costs at least $US15,000 to set up. You require an operating company in Hong Kong. An expert in this area (MPF schemes in Hong Kong) is Carolyn Butler from the Henlyn Group on +852-2517-7848. We have found Carolyn very knowleable and helpful. Some countries allow you to bring back your pension tax free into the local pension scheme - it would be worth checking out if you haven't already.

[twlewis]

Hey - we're canucks and have been in Asia for 10+ years.

If you want expert advice - call David Ingram - he is a leading expert in tax, residency and cross-border finance. Based in Vancouver. He can advise you about the issue of residency and he can help you structure your pension. I have used him and I trust him. Pay him his fee and get good advice. www.centa.com

As for my 2 cents worth....you have a holiday home in Canada ? And it's wide open with no one living there ? That isn't good. It's not the end of the world - but it's better when someone else is occupying any leased or owned property in Canada via a long-term (sub)lease. If not, then it remains a tie that you could walk into at anytime you wanted. Sincerely hope that you don't have any other ties, eg. credit cards, bank accounts, drivers' licence, medicare cards, cars etc... The more ties, the worse it could get. Conversely, I hope you've kept all kinds of paperwork that proves your primary life existed in Asia - everything like phone bills, rent, heat, credit cards, club memberships, car registration etc... these ties help to prove that Canada should not view you as a resident taxable.

Good luck.