[goshik007]

I'm moving to Hong Kong in a month for work from Toronto. I've read on the forum that in order to avoid the double taxation you have to become non resident in Canada, which entails closing all the accounts, handing in health card, and cancelling visa cards. I have Student loan both through government and through Canadian bank both of which draw interest from an account at a Canadian the bank. The question is whether I have to somehow close this account as well or is there a way to tell CRA about my unique situation to avoid them treating me as a resident?

Thanks,
G

[gilleshk]

You don't need to do any of thee things to be a non resident. You leave Canada and make sure you're away for more than two years and that will do the job. You don't need to fill in any paperwork, you don't need to hand in any cards or close any accounts. You do need to do a tax return if you are earning interest and on the tax return, there's a box to tick for non resident.

Technically, you shouldn't renew health cards, credit cards, driver's license if they expire but there's no need to cancel them. You shouldn't be using the health card though, that would be a big no no.

The essence of it is that you need to be able to prove that you have no immediate intention of returning to Canada.

All this is theoretical and matters not one bit unless you get audited which is fairly rare and would only likely happen when you return. There are many, many people that have done things like taking a two-three year contract with a leave of absence in Canada or kept a residence or have a spouse working in Canada which are not allowed and never had a problem.

On top of it, Canada has no treaty with HK so they can't get any information unless you volunteer it. On the other hand, they can freeze and empty your bank account in Canada if they decide you owe them money or put a lien on properties that you own.

[Football16]

There are some other threads on this topic but the one primary test of residency for Canadians is home ownership. The other stuff - drivers licence, health card, etc are secondary to the home.

If you own a home in Canada the only way to avoid tax department scrutiny is if it is rented out at arms length meaning not to family members.

The tax accountant I heard speak on this tells his clients if they need a home for the kids back in Canada, rent them one from the proceeds of renting out your home. They say that the tax dept looks at renting to family as still having care and control meaning that you can take the home back regardless of a lease or rental agreement but you cannot do this if it is strangers.

[goshik007]

Thanks for your advice