Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Search this Thread Rate Thread Display Modes
Old 21-04-2019, 12:05   #1
Registered User
 
TheRailRoader's Avatar

Join Date: Feb 2019
Location: North west BC.
Posts: 89
Canadian Tax benefit Q's

So my wife and I are running all the numbers, finding any taxable implications and relevant issues.. were we ran into an interesting scenario.

We will be maintaining a residence in Canada, to hold some property we wish to keep were I need a residence to do so. We of course are recieving the Child benefit due to having two kids, so we looked into implications of that as well and we found this.. from the CRA.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/factual-residents-temporarily-outside-canada.html#nttlmnts

Going over to the benefit calculator we could be eligible for roughly $800/mo when we set out. So we are just curious if anyone else has maintained a factual residence in Canada or if they have up to date knowledge regarding the benefit and sailing.

Our plan is an extremely leisurely circumnavigation, so not staying in any one country long enough to be considered an emigrant. From what we found, if we could maintain a part time employment working overseas/from home not really for the income, but for taxable implications and residency implications etc.

Any rate anyone know anything about this? Are we on the right track? I plan on reaching out to a tax accountant regarding this.. but being tax season, that will take a while lol

Any rate any advice or insight is appreciated
Abdullah
__________________

TheRailRoader is offline   Reply With Quote
Old 21-04-2019, 14:22   #2
Moderator
 
JPA Cate's Avatar

Join Date: Nov 2011
Location: aboard, cruising in Australia
Boat: Sayer 46' Solent rig sloop
Posts: 15,587
Re: Canadian Tax benefit Q's

Boy, that sure sounds like you think the Canadian taxpayers should support your cruising to the tune of $800/month.

I think you will not find a loophole like that as you dig deeper. Look at what happens to your medical benefits, I believe, once you've checked out of Canada, after you've been gone a set period, you have to re-establish residency in order to qualify again for the health care system....even if you were born there.

Ann
__________________

__________________
Who scorns the calm has forgotten the storm.
JPA Cate is offline   Reply With Quote
Old 21-04-2019, 14:42   #3
Registered User
 
Mike OReilly's Avatar

Join Date: Sep 2011
Location: Good question
Boat: Rafiki 37
Posts: 6,388
Re: Canadian Tax benefit Q's

Iím not sure how you get your $800/month ó is this the child benefit? Sounds pretty rich. How do I sign up?? (probably would help if I had some kids ) But if Iím reading the linked info correctly, you may be able to remain a ďfactual residentĒ of Canada and your province. But this is just for tax and federal benefits purposes.

Ann is right, I donít think it will allow you to maintain your provincial healthcare eligibility. For that you normally have to be resident in your province for five or six months of each year. There are special mechanisms you can apply for to get extended leaves, but they are limited.
__________________
Why go fast, when you can go slow.
BLOG: www.helplink.com/CLAFC
Mike OReilly is online now   Reply With Quote
Old 21-04-2019, 23:15   #4
Registered User
 
TheRailRoader's Avatar

Join Date: Feb 2019
Location: North west BC.
Posts: 89
Re: Canadian Tax benefit Q's

Ann, I am not out to steal money. I just feel it would be smart to take advantage of any legal options that exist. I stumbled upon this as a rabbit hole kind of a situation, I have to maintain residency to store my restricted firearms in Canada as I understand and I ran into the 6 month rule for residency Mike is referencing and I was looking for ways to make it work.

For reasons of my own, I do not intend on bringing firearms with me on my cruising so I apparently have to maintain a residence here anyways, pay tax on income I withdraw from my investments etcetera. So on and so forth. So trying to have a better grasp on this before I call the tax man to have a better educated conversation.

I will look into the medical angle as well, but a child benefit is seperate from tax/medical issues as well and is subject to different laws. But yes, most times when something sounds to good to be true, it is.

Mike, 2 kids, young, with sub x amount of income equals the $800/mo

RR
TheRailRoader is offline   Reply With Quote
Old 22-04-2019, 09:44   #5
Moderator

Join Date: Jun 2015
Posts: 2,583
Re: Canadian Tax benefit Q's

It is fairly straight-forward:

As a Canadian citizen you are required, IF YOU HAVE TAXABLE INCOME, to file a personal Income Tax Return, Form TD1, declaring your WORLDWIDE income. If you do that, you are entitled to all the benefits that will flow to you under the Canadian Tax Act and the Regulations thereto, including the Child Tax Benefit. If you ask Canadian Revenue Agency for "direct deposit" to your bank account (which you do on the Form TD1) any cash flowing to you from the Government of Canada and from the Province of BC, where you reside, will go directly into your bank account every month and every quarter as these "rebates" come due. This will be so whether you are actually present in Canada or not on the due dates.

If you DO have taxable income and DON'T file a TD1 you will not receive the benefits, and you will be subject to penalties for not filing.

If you do NOT have taxable income, you are not required to file, but obviously you won't get the benefits. If you do not have taxable income, but you do file a "Nil Return" you WILL be entitled to the benefits.

Your asking the question in the way you do leads me to believe that a "professional" such as H.R.Block may have done your past returns. Not a good idea. Use a REAL tax accountant, or do it yourself.

You would, IMO, do yourself a favour if you blew the thirty bux on Intuit's "TurboTax" programme and prepared a "pro forma" (draft) return for the 2018 Taxation Year. The programme can be bought on line or at sundry stationers such as Staples. The programme will tell you PRECISELY what you can expect for Child Tax Benefits and GST Rebate as well as Provincial Employment Refundable Tax Credit. The programme has an excellent reference section where you will find answers to anything you might have to ask, all explained in language that laymen can understand.

But mind your p.s and q.s! You are ONLY entitled to receive these benefits if you (not your property, YOU!) are physically present within Canada's borders 184 days or more in the relevant Taxation Year. Should you be present within our borders 183 days or less in a Taxation Year you lose your entitlement to these benefits and CRA will demand them back and impose a fine unless money is returned within 30 days of demand. That fine, if CRA deems you guilty of tax evasion, may be as much as 100% of the debt owed, and this aggregate debt will bear interest at the statutory rate until discharged. Be warned: CGA cannot know if you are off in the Marquesas the entire year, and once triggered the benefits will continue to flow. But if you are then caught out in, say, a random audit, or if someone with his skivvies in a twist reports you, CGA will smack you REALY, REALLY hard!!

Perhaps it is worthwhile mentioning that if you have "outstanding" returns - if you failed to file in past years - CRA is quite lenient with people who file VOLUNTARILY for past years that were missed. You would be asked for taxes owning, but usually not fined. CRA would be amenable to a "reasonable" arrangement to pay off the debt over time, and in the first instance CRA would apply any rebates such as CTB to the outstanding debt rather than remit the rebate to you.

As you may gather, I used to do this sorta thing for a living. I've retired and am therefore not a jour with the latest regulations and Interpretation Bulletins. Go see a REAL Tax Accountant!

All the best

TrentePieds
TrentePieds is offline   Reply With Quote
Old 22-04-2019, 09:50   #6
Registered User
 
PuttingDoctor's Avatar

Join Date: Jun 2014
Location: Daytona Beach, Fl
Boat: Irwin 46 CC
Posts: 315
Images: 1
Send a message via Skype™ to PuttingDoctor
Re: Canadian Tax benefit Q's

Sadly that $800 CDN$ amounts to only $600 US$ today and even less if you try to convert thanks to the fees banks charge.
__________________
s/v Grace II
POC: Toronto, ON
PuttingDoctor is offline   Reply With Quote
Old 22-04-2019, 10:37   #7
Registered User

Join Date: Dec 2009
Posts: 67
Re: Canadian Tax benefit Q's

Quote:
Originally Posted by TheRailRoader View Post
So my wife and I are running all the numbers, finding any taxable implications and relevant issues.. were we ran into an interesting scenario.

We will be maintaining a residence in Canada, to hold some property we wish to keep were I need a residence to do so. We of course are recieving the Child benefit due to having two kids, so we looked into implications of that as well and we found this.. from the CRA.

https://www.canada.ca/en/revenue-age....html#nttlmnts

Going over to the benefit calculator we could be eligible for roughly $800/mo when we set out. So we are just curious if anyone else has maintained a factual residence in Canada or if they have up to date knowledge regarding the benefit and sailing.

Our plan is an extremely leisurely circumnavigation, so not staying in any one country long enough to be considered an emigrant. From what we found, if we could maintain a part time employment working overseas/from home not really for the income, but for taxable implications and residency implications etc.

Any rate anyone know anything about this? Are we on the right track? I plan on reaching out to a tax accountant regarding this.. but being tax season, that will take a while lol

Any rate any advice or insight is appreciated
Abdullah
You are maintaining a residence in Canada, then you have no choice but to remain a factual resident of Canada. Even without a residence it's hard to become a non resident. You are required to file an income tax return each year. Any income you receive Worldwide is supposed to be declared on your Canadian tax return. Your child benefits will continue as indicated in the link you sent.

You will have to check with BC healthcare to see if you can get an extension of eligibility beyond the 183 days or whatever it is in BC. In Ontario it's 7 months and one is allowed a once in a lifetime two year eligibility window which you have to apply for. It's not automatic. Regardless you will have to decide how you are going to handle health insurance and I know Medic requires provincial eligibility. Medical insurance can cost a small fortune.
ebs001 is offline   Reply With Quote
Old 22-04-2019, 11:25   #8
Moderator

Join Date: Jun 2015
Posts: 2,583
Re: Canadian Tax benefit Q's

Abdullah:

I just now noticed your name. Make sure you understand the difference between being a Canadian Citizen, a Permanent Resident (formerly known as a "Landed Immigrant") and a Non-Canadian present in the country on a Visa. Different rules apply in regard to Taxation and benefits.

ebs001 is right to warn you about health insurance. B.C.Medical will cover you under you regular subscription for the first 183 days you are out of THE PROVINCE. (not the country - THE PROVINCE!). After that, you are on your own, and you'd have to reapply for coverage when you return if you are away for longer than that.

It might be worth noting also, that such benefits of being a Canadian Citizen, or a Permanent Resident of Canada, as Old Age Pension, benefits under the Canada Pension Plan and Guaranteed Income Supplements are not administered by CRA but by a different Government Agency called Employment and Social Development Canada (formerly Human Resources Canada). ESRC makes its administrative determinations in any given year on the basis of the PRIOR year's T1 Tax Return from the applicant for benefits. CRA automatically transmits the required information to ESRC. That doesn't in itself trigger payment of benefits. It merely prepares the way for any application a Canadian Citizen or Permanent Resident may chose to make.

TP
TrentePieds is offline   Reply With Quote
Old 22-04-2019, 12:10   #9
rbk
Registered User

Join Date: Feb 2016
Location: Whitehorse, YT
Boat: Tayana 37
Posts: 1,079
Re: Canadian Tax benefit Q's

Quote:
Originally Posted by TheRailRoader View Post
Ann, I am not out to steal money. I just feel it would be smart to take advantage of any legal options that exist. I stumbled upon this as a rabbit hole kind of a situation, I have to maintain residency to store my restricted firearms in Canada as I understand and I ran into the 6 month rule for residency Mike is referencing and I was looking for ways to make it work.

For reasons of my own, I do not intend on bringing firearms with me on my cruising so I apparently have to maintain a residence here anyways, pay tax on income I withdraw from my investments etcetera. So on and so forth. So trying to have a better grasp on this before I call the tax man to have a better educated conversation.

I will look into the medical angle as well, but a child benefit is seperate from tax/medical issues as well and is subject to different laws. But yes, most times when something sounds to good to be true, it is.

Mike, 2 kids, young, with sub x amount of income equals the $800/mo

RR
One thing to consider RR is you will most likely find yourself stuck somewhere for hurricane/cyclone/winter storm season. You may want to take advantage of these down times to return home to help solidify your residency claim. Lots of cruisers do this. 4-6-8 months cruising, return home, see family, make some beer money, buy boat items to smuggle back to boat to avoid shipping/duties etc. Also a good way to break the family in rather than just full time right off the start.
rbk is online now   Reply With Quote
Old 22-04-2019, 13:12   #10
Registered User
 
flyingnut40's Avatar

Join Date: Jan 2014
Location: Cobourg, Ontario,Canada
Boat: 1975 Scirocco 24 (Bulb Keel)
Posts: 78
Re: Canadian Tax benefit Q's

Following
__________________
Live your life with passion, even if it kills you, because something is going to kill you anyways. Webb Chilies
flyingnut40 is offline   Reply With Quote
Old 22-04-2019, 13:37   #11
Registered User
 
flyingnut40's Avatar

Join Date: Jan 2014
Location: Cobourg, Ontario,Canada
Boat: 1975 Scirocco 24 (Bulb Keel)
Posts: 78
Re: Canadian Tax benefit Q's

I did see a post once where they said come back to Ontario before the 6 months, go visit your doctor and get your prescriptions renewed and you were good to go again...... does this work in reality? I do know that the Federal government does not report your comings and goings to the province. It's a privacy thing..... How does the province know to cancel your OHIP if you don't tell them?
__________________
Live your life with passion, even if it kills you, because something is going to kill you anyways. Webb Chilies
flyingnut40 is offline   Reply With Quote
Old 22-04-2019, 19:37   #12
Registered User
 
TheRailRoader's Avatar

Join Date: Feb 2019
Location: North west BC.
Posts: 89
Re: Canadian Tax benefit Q's

Quote:
Originally Posted by TrentePieds View Post
Abdullah:

I just now noticed your name. Make sure you understand the difference between being a Canadian Citizen, a Permanent Resident (formerly known as a "Landed Immigrant") and a Non-Canadian present in the country on a Visa. Different rules apply in regard to Taxation and benefits.

ebs001 is right to warn you about health insurance. B.C.Medical will cover you under you regular subscription for the first 183 days you are out of THE PROVINCE. (not the country - THE PROVINCE!). After that, you are on your own, and you'd have to reapply for coverage when you return if you are away for longer than that.

It might be worth noting also, that such benefits of being a Canadian Citizen, or a Permanent Resident of Canada, as Old Age Pension, benefits under the Canada Pension Plan and Guaranteed Income Supplements are not administered by CRA but by a different Government Agency called Employment and Social Development Canada (formerly Human Resources Canada). ESRC makes its administrative determinations in any given year on the basis of the PRIOR year's T1 Tax Return from the applicant for benefits. CRA automatically transmits the required information to ESRC. That doesn't in itself trigger payment of benefits. It merely prepares the way for any application a Canadian Citizen or Permanent Resident may chose to make.

TP
Thanks so much for the info!

And for the record, family has been in Canada since the 1800's. I think I do not need to worry about those other titles at least Canada side haha

Regarding all the rest, my wife has been filing the taxes, but since this is a very indepth topic we felt it surpassed our knowledge or abilities. Which apparently it does.

Thanks a million mate, I will go forward and talk to a tax accountant regarding this. Far more complex then I realized.

RR
TheRailRoader is offline   Reply With Quote
Old 22-04-2019, 19:56   #13
Registered User
 
TheRailRoader's Avatar

Join Date: Feb 2019
Location: North west BC.
Posts: 89
Re: Canadian Tax benefit Q's

Quote:
Originally Posted by rbk View Post
One thing to consider RR is you will most likely find yourself stuck somewhere for hurricane/cyclone/winter storm season. You may want to take advantage of these down times to return home to help solidify your residency claim. Lots of cruisers do this. 4-6-8 months cruising, return home, see family, make some beer money, buy boat items to smuggle back to boat to avoid shipping/duties etc. Also a good way to break the family in rather than just full time right off the start.
I am trying to get a year long sabbatical from work, go sailing for a year. Come back work for 6 months to a year and then pull the plug possibly or ask for annual leave of absences and combine vacation pld days and loa together to go cruise... If my sabbatical gets denied, I'll just walk away and if my family and I find cruising not to our liking we will cut the sabbatical short and come home and go back to work.

If I happen to have to quit to cruise and we hate it, well such as life either get the job back or go do something else haha.

I very much want to cruise 24/7 for the foreseeable future, but I am a methodical person and a realist. There is a significant chance we may not like the lifestyle, so I like to keep options open.

RR
TheRailRoader is offline   Reply With Quote
Old 23-04-2019, 03:16   #14
Registered User

Join Date: Dec 2009
Posts: 67
Re: Canadian Tax benefit Q's

Quote:
Originally Posted by flyingnut40 View Post
I did see a post once where they said come back to Ontario before the 6 months, go visit your doctor and get your prescriptions renewed and you were good to go again...... does this work in reality? I do know that the Federal government does not report your comings and goings to the province. It's a privacy thing..... How does the province know to cancel your OHIP if you don't tell them?
The physical residency requirement for OHIP coverage to remain in effect is that you must be in Ontario for 5 months in any 12 month period. As I mentioned above you can get a two year once in a lifetime exemption which actually works out to 2 years seven months if you want.

You're right they do not know one's comings and goings but it leaves the door wide open for claims to be denied by OHIP or a private out of country provider. Do you really want to take the chance.
ebs001 is offline   Reply With Quote
Old 23-04-2019, 04:07   #15
Registered User
 
flyingnut40's Avatar

Join Date: Jan 2014
Location: Cobourg, Ontario,Canada
Boat: 1975 Scirocco 24 (Bulb Keel)
Posts: 78
Re: Canadian Tax benefit Q's

2 years and seven months..... that is a fair bit of time to get comfortable with the idea of weather or not you are healthy enough to let the coverage lapse knowing that you need 3 months to reestablish coverage upon returning. My son had to do that after teaching in Japan for a few years.

Let's see....... 2 1/2 years should get me to Australia..... long hurricane season..... That could work.......
__________________

__________________
Live your life with passion, even if it kills you, because something is going to kill you anyways. Webb Chilies
flyingnut40 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
benefit of long overhang Aquah0lic Monohull Sailboats 45 13-06-2017 22:33
Any benefit to painting the city name on your boat? TomLewis Rules of the Road, Regulations & Red Tape 2 07-12-2016 14:24
Hi voltage alternator benefit Pizzazz Electrical: Batteries, Generators & Solar 23 20-09-2016 22:21
benefit of feathering prop on fuller keeled boat? FSmith Propellers & Drive Systems 21 10-01-2016 19:46
Practical Benefit to USCG OUPV License? HoppySailor Training, Licensing & Certification 29 28-06-2015 11:55



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 20:16.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.