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Avoiding Canada's global taxation

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sngsingapore
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Avoiding Canada's global taxation

Post by sngsingapore » Sat, 03 Jun 2006 12:32 am

I'm a Canadian moving to Singapore to work for a Singapore institution and am trying to avoid paying Canadian taxes. :???:

..1. Does anyone know whether I will be automatically considered a resident by Singapore's government for tax purposes? My contract is for 3 years with a Singapore university as faculty.

..2. If not, is there something I need to do in order to become a resident for tax purposes?

..3. Does anyone know of other ways (besides just not filing taxes which I can't do) for how to avoid paying Canadian taxes?

Thanks!

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jpatokal
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Post by jpatokal » Sat, 03 Jun 2006 6:01 pm

1. Yes. Your university will submit the paperwork to the IRA when they hire you and you'll get a tax bill sometime in April.

2. Nope.

3. As far as I know (which isn't all that far), Canada is not one of those countries like the US that try to double-tax you. Basically, if your income isn't earned in Canada and you're not resident in Canada (usually there's some minimum amount of days per year for this), then it's none of their business.
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NJ
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Post by NJ » Wed, 28 Jun 2006 6:00 pm

You should be able to get a form from the Canadian government which will assess your tax liability and I doubt that you will have to pay tax in Canada. If you get them to assess you don't even need to file a tax return in Canada as there is a reciprocal tax agreement between Singapore and Canada. Even if you fail the non resisdent status test you probably won't have to pay tax (you might just have to file a return). I wouldn't worry about getting double taxed. It probably won't happen, especially if you plan to live in Singapore for the duration of your 3 year contract. (enjoy the nice low tax rates in Sing!)

Check out this site for more information.
http://www.cra-arc.gc.ca/tax/nonresidents/menu-e.html

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Strong Eagle
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Re: Avoiding Canada's global taxation

Post by Strong Eagle » Wed, 28 Jun 2006 7:47 pm

sngsingapore wrote:I'm a Canadian moving to Singapore to work for a Singapore institution and am trying to avoid paying Canadian taxes. :???:

..1. Does anyone know whether I will be automatically considered a resident by Singapore's government for tax purposes? My contract is for 3 years with a Singapore university as faculty.

..2. If not, is there something I need to do in order to become a resident for tax purposes?

..3. Does anyone know of other ways (besides just not filing taxes which I can't do) for how to avoid paying Canadian taxes?

Thanks!
I believe that Indonesia and the US are the only two countries in the world that double tax their citizens. All others have reciprocal tax agreements which state that if you pay tax in your country of residence, you don't pay tax in your home country.

Legislation has been introduced into the US to do the same... to make US business more competitive in the world... as they must often pick up US taxes for their expats.

8
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Post by 8 » Wed, 28 Jun 2006 9:11 pm

I am Canadian and have been non-resident the past several years.

Over the years the regulations have become tighter. Previously the rule of thumb is if you have been out of the country for 2 years, you are pretty much deemed a non-resident and no tax liability exists.

When I left Canada for work, I filed a notification of non-residency and have not filed since then.

However if you are on a limited contract and do return afterwards, you may not be deemed a non-resident. If you are deemed a resident, you are liable for taxes.

To qualify as a non-resident, you have to show that you are severing ties with Canada - bank acounts, houses, credit cards, club memberships etc.

It is true that US and some other countries get you for global tax. Not Canada but you have to meet regulations.

It would be best to speak to an accountant to assess your situation and options. It's been several years for me and as you know tax law only gets more complicated and is constantly changing.

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