What will happen if a Canadian citizen lives outside of Canada for 1 year without returning?
This Canadian lived in the USA from 2001 to 201. I never filed taxes for years I had no Canadian income. When I crossed the border at White Rock BC, I had to pull into secondary inspection to start the process of importing my US bought car into Canada. When the paperwork was done by the Border Services people, I got a “Welcome Home” and I was on my way.The biggest deal was that I had to buy private emergency medical coverage as there was a 90 day waiting period for my Canadian medical insurance to start again.I went to work the next Monday at the job I had already lined up before coming back.I reactivated my expired Canadian debit and credit cards. I never closed my Canadian banking when I was gone. BC swapped my California drivers license for a BC one and that was it.Citizens almost always are free to return to their country of citizenship unless they formally renounce the citizenship.
Can an Iraqi buy a house in Canada without having a citizenship or residence there?
David is correct.I'd like to add that Ontario and BC have both imposed foreign buyers taxes to discourage speculators. The problem we face is people from offshore buying houses, not living in them and not renting them out, which reduces the available housing stock especially in places like Toronto and Vancouver where there is little or no room to build.l believe they will rebate the tax if you become a resident within a few months.
Can I get out of paying high Canadian taxes by incorporating in Hong Kong?
Sure you can. However, you'll end up in jail.There are several different problems that you face.Canadian residents must declare worldwide income. (Offshore Income Reporting Rules: FAPI). Translation: If someone in Hong Kong pays you, you have to declare it.Canadian residents must also declare ownership of any foreign accrual property income (FAPI, see above). Translation: If you own a company in Hong Kong that makes money, you have to declare it.If an offshore company resells the product of a Canadian company, the transfer price (what the Canadian company sells the product to the offshore company for) must be "fair". So CanCo can't sell a piece of software to OffCo for $1 and then let OffCo sell it for $999. RevCan can and will look for in-depth justification for all transfer pricing. See Canadian Transfer Pricing Documentation. Translation: If you sell something to a company in Hong Kong at an unfair price, and that company is related to you, you will be taxed on the fair price.As if all of this is not enough, Canada also has the General Anti-Avoidance Rule (GAAR), which basically says "even if you are technically following the rules, if we think you are doing this just to avoid taxes then it's against the rules". See Copthorne Holdings Ltd. v. Canada. Translation: It doesn't matter how clever you are.Conclusion: Don't even think about doing this without the in-depth advice of a competent tax lawyer.
Why do things cost more in Canada?
Lots of reasons, but key is: 1. Taxes. Canada has GST, higher income taxes, higher gas taxes, etc. all these work their way into prices. 2. Labour laws. From minimum wage and WCB, to hours, overtime, hiring laws, maturity leave, etc. 3. Smaller population. Because the US has ten times the population, for many goods it makes sense to manufacture them closer to where the larger population is. Even imported goods will be imported and stored in the US before coming to Canada. 4. Size/population density. Canadian cities are more spread out (except in the east). This adds to extra transportation, shipping, and storage. 5. Location/climate. Some items (especially food) can't be produced in Canada. This often means importing items from outside of Canada adding transportation, fuel, storage, refrigeration, etc. Cotton can't be grown in Canada nor can tobacco, etc. Even in areas in Canada which can produce items... it is expensive to ship east to west.
How to bring an engagement ring into Canada without having any problem at custom.?
I am a US citizen and I am planning to propose to my girl in Canada. But I am so afraid to get "caught" bringing such item at custom. Reasons being, for one, it exceeds the amount of my total goods so I am required to report, and then, of course, the possibility of me getting married during the trip and stuff. I would like to be honest and I am planning to come back for continue working to save up more money but I am just worried that they wouldn't buy it and then turn myself into further trouble. Anyone has such experience and any suggestion would be great, thanks!
Do Canadian startups that incorporate in the US have to file taxes in both the countries (Canada and US)?
For legal purposes you may consider contacting a US business attorney for forming and drafting corporate documents. For tax purposes, your new corporation gets formed in a particular state here in the US.We call this corporation a tax C corporation (“C”) for tax purposes. Right now represents an ideal time for operating as a C due to the newly revised 21% corporate tax rate on yearly taxable income as noted in revised Section 11(b). Salaries paid to employees and founders complying with applicable employment laws reduce the C’s taxable income.A C only pays tax in the US assuming you operate the C entirely from a US office location. If you operate the C from Canada, you may face tax in Canada. (Of course this issue gets addressed with a Canadian tax person). If you do operate the C out of Canada, the new US taw law has a favorable provision for certain types of foreign source income. As a C can also reduce its tax rate by taking a 37.5% deduction for any foreign based global intangible income under Section 250(a)(1)(A).If the C does pay tax in Canada due to a Canadian office, C can reduce its US tax applying a foreign tax credit against US taxes for taxes paid in Canada (Section 901(b)).A C owned by foreign individuals (corporations) has required annual information reporting requirements under Section 6038A(a). Non compliance carries a minimum $10,000 fine (subsection (d)). We file this annual information report as part of filing the 1120 corporate tax return.If the Canadian shareholder(s) wish to transfers profits beyond salary from C, the shareholder(s) would receive profits in the form a of a dividend. The C withholds a 30% withholding tax on any dividends transferred based on Section 871(a). We can mitigate the results here using the US Canada Tax Treaty. Under Article 10 we can reduce the withholding rate to 15% for an individual. If the C is owned by a Canadian foreign corporation we can reduce the withholding tax rate to 5% as noted in the 2007 Protocol Article 5.I have analyzed the above situation using primary tax authority. If the situation changes any depending on the county and fact situation, the tax results may change considerably. www.rst.tax
Bring alcohol back from US to Canada underage?
if we obtain alcohol in the US, can I bring it back to Canada? I am 18. I would be underage in the US but on the way home I would be entering Quebec, with Canadian custom people, where i am legal age, Will they care that I was in the US with alch underage, or is all that matters that I declare my stuff and I am legal age in Quebec?