Any Canadians here? Tax-free in Qatar?

Tax free status is granted based on your answers to CRA's request for non-residency for tax purposes form. It is not automatic no matter how long you are out of the country. Do you think CRA is going to lose any opportunity of clawing money out of you that they feel is "owed"? Think again.

No it isn't too late to declare it retroactively. I've done it after being out of the country more than a year.

jaiditsol, how did you find out that you were automatically granted a Tax Free Status?

I have heard that tax-free status is automatically granted upon 2 years out of Canada.

MC, is it never too late to declare the tax-free status retroactively?

By the way, mc, thanks for the driver license tip. I didn't know we can use Qatar DL in Canada.

I'm not saying you can't use your Qatari license to rent, but it may get you a better rate in Canada at least(no guarantees there though).

I've kept an account to continue mortgage payments and other bills (the house was a yearly lease to a "real" unrelated person).

People who have issues with CRA when they return have generally (not all) tried to bend the rules by pseudo selling their homes to a close relative at a ridiculous on paper price with the understanding that the property would be "sold" back when they returned.

Others have avoided dealing with CRA since they left, then they "pop up" on the CRA system when they return.

Can CRA screw you over even if you follow the rules? Sure. But it's a whole lot less likely to happen if you do follow the rules, and the odds of "winning" (for lack of a better word) are exponentially greater if you've done what has been directed in CRA's protocols.

Hadouken, since you asked, I'll oblige.

Try reading a few more threads here and on boards related to pilots and cabin crew to understand A LITTLE bout what it's like.

Let me give you a small sample of what happened to me yesterday. First a bit of background. I've driven for 32 years in 14 different countries. I've lived and/or visited {for extensive periods) 26 countries from America to Europe to Asia and the Middle East. Never did I have a single accident until here a few days ago.

Let me acknowledge now that I'll be generalising here but there's no way around it. There are of course "proper" people here as well "improper" ones like anywhere else in the world but the scale is heavily on the "other" side.

The reason I was "successful" in avoiding accidents is that I drive defensively. Even that doesn't work here though. Do you know why? Because there are people who actually RAM your car if your driving properly clashes with their belief in owning the road. Think of Mad Max and you come close to what it's like here.

Check this one :

http://www.settlement.org/discuss/topic.asp?TOPIC_ID=7806

you can convert your drivers license here with no problems. (if you are American, that's a different story).

I've used my Qatar license to rent cars all over the world with no problems, including Canada, Panama, Malaysia, the US, Jordan, etc.

For visitors, Canadians can come here with no restrictions, just show up at the airport and you can get a visa on arrival. It's 100QR and is good for a month.

Tax free status after 6 months? Where can I get that contact at CRA! CRA causes no end of trouble for Canadians working here with tax free status with no consistency of rule interpretations. Even if CRA rules you are tax free with all your income from overseas, when you go back to Canada, they may try to revoke that and give you a big bill for back taxes. Do your homework and maybe even consult a lawyer or accountant who has overseas clients. Can save you a fortune!

As Canadians your parents/sister can come on a tourist visa, good for one month, renewable for another month. They would just have to exit Qatar and come back the same day to get another tourist visa, repeating the same process ad infinitum.

Mandi

Thank you everyone for the great feedback and insight. :)

I've started to look into the information on CRA's website. Wondering if keeping a canadian bank account for the purpose of sending money from Qatar to for continuing some monthly loan payments, would be considered ok?

It would my wife and I, if we do move. Would we be able to sponsor either of our parents (or a sibling) for a visit? Any restrictions on the length of time we can sponsor them for?

AlBundy - may I ask the reason why you're advising on not moving there? I'm trying to find out as many of the Pros & Cons of moving as I can. Thanks

marycatherine - Can a a Canadian driver's license be converted to a (full) local one automatically, or is a knowledge or road test required?

You can rent your property at arm's length for a year to year lease. You can generate income on the property, but it will be taxed, your income in Qatar should not be (depending on Revenue Canada's decision). You can have a Canadian driver's license, I have one, I have declared it, and provided the rationale to Revenue Canada on my non-resident for tax purposes form that I can't rent a car in Canada without one (most rental agencies won't recognize a recent GCC license). Capital gains is a whole other scenario, get expert advice.

I am not sure about being "automatically granted a Tax Free Status after being outside Canada for over 6 months" This is the first I've heard of that situation. Everyone else I've metin the past 20 years has had to apply to be considered as non-resident for tax purposes, and then when re-entering Canada has to declare their return (another form).

Again, check with Revenue Canada, they are the decision makers no matter what the rest of us tell you here.

I moved from Toronto to Qatar back in 2010. I didn't claim a Tax Free Status, BUT, when I went back couple months ago I found that I was automatically granted a Tax Free Status after being outside Canada for over 6 months.

I would like to add that you don't need to sell your property in Canada, but you can't generate income from that property either. Otherwise you will be HEAVILY taxed on it. So basically after finishing up from Qatar and moving back to Canada, should I sell my property I will be charged for Property gain tax. My father had to pay $60k in taxes for his house back in Edmonton when he tried selling it after being outside Canada since 1997 (Tax free status btw).

Get your facts straight before you come here...it's not a overly complicated process but it's better to secure yourself now rather then later when you move back. There are some loop holes which you might discover yourself once you do your research.

Good luck.

First, if possible at all, don't go there!

Second, if you really want to go, you don't have to let go of property as long as it is rented, and you can keep the investments you have had, like RRSP, just can't add to it/them.

You do have to give up your Ohip and driver's license But trust me, you'd be better off in Qatar without Ohip or relying on it.

Best of luck.

And it can take from a few months to a few years to get Revenue Canada's approval. Start now.

Go to Revenue Canada's website and get the facts. They are very clear and you have to complete a form requesting Tax Free status. It will start from the date Revenue Canada approves. (mine is from the date I left Canada).

If you are working for a Canadian organization that pays you via a Canadian bank account that organization may require Revenue Canada's written approval before they start deducting taxes.