Income tax in Canada is sow high, that even as a Canadian living abroad, you are still not exempt from paying your income tax!!! Unless …
you are a non-resident.
To be non-resident then you must sever residential ties by not having any property in Canada (especially that is readily avaialble), and not having any spouses or dependants there.
Other than that, it helps NOT to have, Canadian or in Canada: driver’s license, health insurance, bank account, possessions, and memberships, and not to be in Canada more than 5 months in any year.
It also helps to leave Canada, and to have residence elsewhere. Usually to have residence elsewhere is enough.
Either that or the place where you reside should have a tax treaty (made to avoid double taxation). There is a list of countries that Canada has tax treaties with from the CRA website. In that case you would be a ‘deemed non-resident‘.
ACCORDING TO MARIA BORRELLI:
Regarding a bank account, you can hold a bank account and even a credit card but the limit is about 500 dollars (an accountant said so).
You can hold your driving license as well as your health card but they must not be used, The health card must not be used for three months even after you return to Canada.
When you file your taxes, just confirm you have no income in Canada.
It takes 3 weeks to get your passport, and depending on the paper work you show them they will give you a conditional passport or a renewal. You better provide all documents (like citizenship cirtificate / birth certificate), otherwise you will get a conditional passport.
MORE INFO
– details: http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.html#P130_22358 OR http://www.cra-arc.gc.ca/E/pbg/tf/nr73/README.html
– summary: http://blog.taxresource.ca/living-abroad-becoming-a-non-resident
– example: http://blog.taxresource.ca/am-i-a-resident-of-canada/
– more: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html
– more 2: http://www.expatinfodesk.com/expat-guide/nationality-specific-information/canadian/taxation/
– more 3: http://www.canuckabroad.com/international-banking/dealing-with-taxes-when-living-abroad.html
NOTE: CRA = Canadian Revenue Agency
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