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PostPosted: Thu Mar 23, 2006 1:56 pm
 


I was just wondering if any of you who live abroad still do Canadian taxes?? I've received my 2005 tax forms, and it says in them that you have to include all earnings even if you're overseas...and upon phoning Inland Revenue here in the UK to find what forms I'd need to enclose for such a purpose, they had no idea as people here don't fill out tax forms unless they want to get money back from the govt. It's not a 'requirement'.

Anyway, the only form of income I can show so far is the interest I've made off my investments in Canada last year, and even though I'm working full time here in Scotland, I don't know if I have to show that, or if it's even neccessary to.

What are your thoughts??


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PostPosted: Thu Mar 23, 2006 4:05 pm
 


dimoreien dimoreien:
I was just wondering if any of you who live abroad still do Canadian taxes?? I've received my 2005 tax forms, and it says in them that you have to include all earnings even if you're overseas...and upon phoning Inland Revenue here in the UK to find what forms I'd need to enclose for such a purpose, they had no idea as people here don't fill out tax forms unless they want to get money back from the govt. It's not a 'requirement'.

Anyway, the only form of income I can show so far is the interest I've made off my investments in Canada last year, and even though I'm working full time here in Scotland, I don't know if I have to show that, or if it's even neccessary to.

What are your thoughts??


Well, when I worked in Japan, I had to show to account for my earnings there. The bonus is that you also account for your taxes paid to the coutnry you are in. That means you only pay taxes if your tax paid in Scotland are less than you would have paid had you earned your income in Canada. And even then, you only pay the difference.

Example: You earn the equivalent of $50,000 CDN. In Canada you would pay 25% tax (it's a guess for the sake of this example), or $12,500. Maybe you paid about $12,000 CDN to Scottish/British tax authorities. You then only have to pay an extra $500.

To get the exact tables and such, I'd recommend a call to the Canadian Embassy in London or send you info home and get an accoutant there to do your taxes for you.

I know it sucks, but that's one reason why a lot of celebs dump Canadian citizenship and adopt US/UK citizenship.


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PostPosted: Thu Mar 23, 2006 11:38 pm
 


Oh geez. :/

Thanks for the tip Bootlegga!


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PostPosted: Fri Mar 24, 2006 10:51 am
 


I was sent NR4's here in the US. I later found out that these are Canadian Tax slips that I use when I file in the US, not in Canada.


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PostPosted: Fri Mar 24, 2006 10:54 am
 


I didn't receive any other forms other than the normal provincial tax stuff and the fed tax.


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PostPosted: Fri Mar 24, 2006 10:56 am
 


I still receive a military pension which I get in CDN funds deposited in to a Canadian account. It's tax free, but that's the only thing I file for in Canada. I have no intentions of paying taxes on money that wasn't earned in Canada - Ecspecially if I don't live there any more.


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PostPosted: Fri Mar 24, 2006 10:58 am
 


Well, that's my thought on it too Bossdog. I only ever had intentions on filing my investments, which are still held in Canada, but as for my actual income in Scotland, what's the point?

However, I've got bad thoughts about tax people chasing me up over the globe for wanted tax money. I think it's cause I work in a court and I have to deal with the tax agents here filing claims on people who owe thousands of pounds in taxes. It's seriously scary lol


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PostPosted: Fri Mar 24, 2006 11:06 am
 


If you think you may owe, give Revenue Canada a call to hear their position.


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PostPosted: Fri Mar 24, 2006 11:13 am
 


That's a good idea. I shall do that some time in the next week!

I make £14,000 a year....about $28,000 cdn or just higher. However, the UK govt takes off about £200 a month in taxes so...I bring home about £900 a month lol


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PostPosted: Fri Mar 24, 2006 11:15 am
 


So I guess those Canadian investments are vital, eh!


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PostPosted: Fri Mar 24, 2006 11:18 am
 


No kidding!!!

It sucks using it though because I lose double the money when I take it out and convert to pounds. One day when we move to Canada, then we can make proper use of it! :D


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PostPosted: Sun Mar 26, 2006 11:08 pm
 


After youve been out of Canada for two years, the government has no claim on your income, or any business knowing how much you are making, while out of the country. Investment income is taxable if you have it in a Canadian bank and if you maintain your residency you leave yourself open.


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PostPosted: Thu May 18, 2006 12:06 am
 


ShepherdsDog ShepherdsDog:
After you've been out of Canada for two years, the government has no claim on your income, or any business knowing how much you are making, while out of the country. Investment income is taxable if you have it in a Canadian bank and if you maintain your residency you leave yourself open.


Not quite true. If you are still classed as a Resident Canadian you have to pay taxes on your Wordly Income (minus what you paid in another country, of course). If you are (and you have to apply for it) a non-resident Canadian then you don't have to pay. Sometimes it is hard to become a non-resident. You may not own a home or property in Canada, have Bank accounts, drivers licences, goods in storage, etc.. If you are a non-resident and get any income (pension or investment interest) from Canada they will withhold 25% in taxes, unless you apply for a reduction EVERY year. You will not get Old Age Security unless you report youyr income (due to the Clawback introduced a while back).

There is nothing easy anymore. :-(


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PostPosted: Thu May 18, 2006 12:56 am
 


If you are no longer living in Canada you can file an NR73.

NR73 Determination of Residency Status (Leaving Canada)

You will get a letter from Revenue Canada with their Determination of status.

If you are returning for a short time and do not want to be classified as a Non-Canadian resident for tax purpose file NR74.

NR74 Determination of Residency Status (Entering Canada)

Hope this helps.


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PostPosted: Thu May 18, 2006 1:14 am
 


Hmm, this is all very interesting and useful for me too, so thanks for starting the thread dimoreien.


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