Saturday, November 25, 2006

Free at last, free at last...

Well, maybe the comparison to emancipation in the US is a bit extreme, but nevertheless I was happy to receive the following news from the Canada Revenue Agency. My own personal emancipation if you will:
In our opinion, you have not maintained significant residential ties with
Canada. Therefore, we consider you to be a non-resident of Canada as of
March 22, 1998.
What that means in everyday language is that while I am still a citizen of Canada, I am officially and legally no longer considered a resident. Not being a resident of Canada means that I do not have to pay any taxes in Canada. Should I become a resident of Canada again in the future, I would then have to pay taxes, but not on the income I earned from March 22, 1998 when I left Canada!

Interestingly, many people in Canada think that because I married a Korean, that I too am Korean. This is simply not true. To become a citizen of Korea I would have to apply for citizenship and take an extensive citizenship test (including an interview).

Similarly, many people in Korea think that because my wife married a non-Korean, that she is therefore no longer Korean. This also is simply not true. For my wife to become Canadian, she would have to first live in Canada, and second take an extensive citizenship test (including an interview).

Next year I'll be applying for permanent residency status in Korea. This is still different than being a citizen, but is the next best thing. I can come and go as I please without having to worry about visas, re-entry permits, or employer sponsorship. Clear as mud?

For any Canadians living overseas who are interesting in claiming non-residency for tax purposes, check out Canada Revenue Agency's information here:

http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.html

Thank god almighty, free at last.

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