Taxation for Canadians

There has been an ongoing post about Mexican Bank reporting income to Canada (CRA) on TOB and their requesting intimate personal information and I thought that my reply there might be of use to Canadians on this forum


The main word here is resident. RESIDENT of Canada. Most of the Canadians  here that I do work for are NON RESIDENTS OF CANADA.. The Banks here are making no attempt to differentiate between between the residency status of Canadians and as such  I will continue advising those that ask me, to tell their bank that the law only applies to residents of Canada.

You are wrong Joco69!!!!!!

Taxation for Canada and Mexico is based on RESIDENCY not CITIZENSHIP.

IF A CANADIAN RESIDENT HAS AN ACCOUNT WITH A FINANCIAL INSTITUTION OUTSIDE CANADA, WILL INFORMATION BE REPORTED TO CRA?

If a Canadian resident has a reportable financial account in another country that has agreed to exchange information with Canada, the financial institution in that country will be required to report information to their local tax authority, which will then exchange that information with the CRA

What does this mean! Canadian Citizens who are registered with CRA as non-residents do not have to report foreign earnings to the Canada Revenue Agency. Canadian non-residents are NOT subject to CRS  reporting as that applies ONLY TO Canadian Residents (SNOWBIRDS?).

If Canadian snowbirds are not aware of, or don't intend to abide by,  their obligations to Canada then that is their problem and not my concern. My concern is looking after non-resident Canadians and making sure they only pay the proper non-resident taxes . There have been many changes in Canadian Non Resident Taxation in the past 5-10 years and you owe it to yourself to refresh your memory.

There have been a number of concerns published here about a local Bank and their refusing to protect a customers deposits when they are stolen by an employee. This is one of the Banks that is asking for personal information about both Americans and Canadians including SSN's and SIN's. If they can they cannot protect their customers money from theft by an employee, how can they guarantee they can protect a customers from identity theft? Think about it! Do you want your intimate personal information available to any employee at that bank? I think not.

I am quite prepared to answer Canadian Tax questions on this forum for those that have concerns about their situation. I have 27 years experience in the Canadian Tax Mire and before coming to Mexico owned a Tax Prep/bookkeeping office with about 1500 clients. In that situation I dealt with Tax Treaties between the US, UK and others. Since coming here I have dealt with Canadian non-resident Tax concerns and tax treaties between Mexico, US, Canada, UK and Equador. This year alone I have recovered at least 75,000.00 CDN in taxes that were not owed. That does not include a rather large success in the appeals division.

This is not an advertisement, I do like tax puzzles but I would like to would like to emphasize that I am cognizant of current Canadian Tax Laws ( I talk to the CRA at least once a week) and I am up to date.

Dave

DaveP wrote:There has been an ongoing post about Mexican Bank reporting income to Canada (CRA) on TOB and their requesting intimate personal information and I thought that my reply there might be of use to Canadians on this forum

Thanks for good advice. There are more Canadian tax experts than taxpayers on TOB.  Hope they stay there.

slainte39 wrote:

DaveP wrote:There has been an ongoing post about Mexican Bank reporting income to Canada (CRA) on TOB and their requesting intimate personal information and I thought that my reply there might be of use to Canadians on this forum

Thanks for good advice. There are more Canadian tax experts than taxpayers on TOB.  Hope they stay there.

de nada