Taxes while Non-resident Status

[kiwi1959]

Hello

I recently lost my Ontario PR status because I did not meet the 730 day residency obligation as I am working outside Canada to support financially my family residing in Canada. I relinquished (surrendered) my PR Card. I come to Canada as visitor
I still have Ties to Canada: (Wife working part time, and a house under mortgage in joint ownership with my wife. No children under 18 yr)
My wife and I, are filing income Taxes including 2014.
In case my wife will join me for a period of 8 months in 2015 and she will file the NR76 form for 2015 as non-resident for that year.
Assuming I am expecting an important sum in 2015 as accumulated commission from my Employer.
Question:Will this commission amount to be received in 2015 while we are both Non-resident, be subject to Taxes or not ?
Note: We'll be residing in a country which has no Tax treaty with Canada ?

Thank you

 

[Amadan123]

Hello,

Regardless of whether you are a resident of Canada for tax purposes, you will be subject to tax on employment income you earn in Canada.

Madan Chartered Accountant
www.madanca.com

 

[kiwi1959]

Hi Amdan123

First than you for your usual valuable guidance.

I should reformulate my question as follows:
- Let's say in 2015, my wife and I will be Non-resident (her because of 8 months outside and me because I am no longer resident).
- We'll keep earning our Canadian house rental income (as foreigner or Non-resident). That's Ok for the 25% Tax to pay.
- The accumulated commission (important sum) when I resign by end of 2015 from my current employer outside Canada to be cashed in 2015.
Question: This SUM, should not be taxable when my wife goes back to Canada as resident again in 2016. am I right ?

Thank you.

 

[Amadan123]

Hello kiwi1959,

1) You will be considered a resident of Canada for tax purposes as long as your wife is considered one as well. This is because presence of a spouse in Canada is a primary residency tie. So if your wife leaves Canada on August 2015, you will be considered a resident of Canada until August 2015 as well.

2) Noted.

3) Income earned anywhere in the world will be taxed in Canada if the individual is a resident of Canada for tax purposes. The taxation of the commission income in Canada will depend on whether or not the individual is a resident of Canada at the time it is earned.

Please do clarify your third question, as I don't believe I fully addressed your concern. I apologize for this.

Madan Chartered Accountant team
www.madanca.com