TaxCycle Home | Products | Pricing | Events | Documentation | Support | Blog

Spouse PR cannot be renew


#1

Hi,

Both spouses came to Canada few years ago as PR. Now it time to renew their PR, and one of the spouse PR renew application was decline because he didn’t stay in Canada long enough, and doesn’t seem like he wants to stay in Canada. However, they are still married. So there is a tie there.

Now will he become non-resident for tax purposes now? Because he had no PR status anymore, and cannot entered Canada anymore. But the wife still live in Canada, and wants to stay here. If I remembered correctly, to become non-resident, the whole family need to move out, so there no more tie to Canada. If one member of the family still stay in Canada, then everyone still a resident for tax purposes.

Any thought?

Thanks


#2

Hello, I’m not a tax specialist. I think the order of priority is domicile (where he lives) and secondarily family ties, third - ownership of property (or 2 and 3 may be in wrong order). Canada Revenue Agency has form NR-73, Determination of Residency Status (leaving Canada) which you should review. The ties to the foreign country must be greater than ties to Canada, and there is a priority. My limited understanding is that he gives up residency when he permanently leaves Canada, which appears to be the case. CRA’s view may be different.

I suggest that your client prepare form NR-73 and have it ready for Canada Revenue Agency, but this form should be reviewed by a professional before submitting to CRA.

See also the cautions about NR-73 mentioned in this link:

http://www.tiocorpinsurance.com/index.cfm/canadians-in-mexico/canadian-non-residency/nr73-to-file-or-not-file/