questions for applying non-residents in Canada

Hi,dear Daisy,

(1) By now, my husband and I hve been out of Canada for over 183 days this year. Will we be considered non-residents? And,should we go back to Canada to apply for non-residents and report any received oversea income to Revenue Agency?

(2) If we apply for non-residents now, should we cancel all of the banking accounts, credit cards, medical care cares, driver licences, and library cards, and etc.? could we keep the cards, especially the credit cards and driver licences?

(3) Besides, we have mutual funds and other funds which are part of residential ties. In our situation, could we apply for non-residents?

Thank you for your help.

Best wishes,

maggie
September 28, 2005

朱小燕回覆

Dear Maggie:

I'll answer your questions on your  email as follows:

(1) 183 days is one of the criteria in determination of residency for purposes of the Candadian Income Tax Act.

Non resident is requried to report income earened in Canada, not on world income.

(2) Yes, you need to sever all ties with Canda, including your visa and driver's license.

(3) If you become a non-resident, income from mutual Funds would be subject to withholding tax under Part XIII of the Income Tax Act and the applicable tax convention.

Daisy
October 4, 2005