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Posts posted by protekme

  1. I was reading the other thread about the intention of Canadian Border Services to provide tracking data to various government departments to "flag" potential fraud with some of Canada's social programs. The other thread headed off into a different direction with a discussion on health care.

    What I am interested in and frankly confused about is why living here in Mexico on a permanent basis would have any impact on OAS and GIS eligibility. If you are a Canadian citizen and lived in Canada all your life (until at least age 60) and then moved out of the country to spend your retirement years in a country that offers a lower cost of living and great weather, why should this be an issue for the Canadian government? I can't see how maintaining residency or declaring non-resident status should have any bearing on this other than how a person's income from Canadian sources is taxed.

    Kudo. The only reason for all this dancing around is for tax purposes—nothing else. The government of Canada wouldn’t give a hoot where you chose to live if they were not concerned about taxes. I believe that they make it quite fair.

    If you are (officially)* a resident of Canada (no matter if you are physically living in Canada, or not), you are filing your income tax as a regular resident (with or without benefits, etc.—depending). For those who don’t live in Canada but continue to give a Canadian address---which is acceptable--according to the Department of Revenue, they are still considered a resident.

    If you are (officially) a resident of Canada (but don’t live in Canada more than 183 days), you are still filing your income tax as a regular resident (but it should be WITHOUT benefits, etc.). At least according to the regulations: Benefits meaning Health plan, and any other tax rebates that residents are allowed to claim when they are living in Canada full time.* That’s where the lies come into effect: when people are hiding the fact that they live in Canada (certain provinces anyway) less than 183 days a year. They return for health care that they are not allowed to receive. (It's irrelevant that we agree or disagree with those regulations).

    If you chose not to reside in Canada full time, (and be considered as such) you have to declare to the Department of Revenue the date that you are leaving. It’s not done automatically. Then, you are considered a non-resident of Canada (for tax purposes) and will be paying taxes differently. It could be to your advantage or not. Take note that your pensions, which are taxed at 15% because you live in Mexico, could be refunded if you chose to. But there are also conditions attached to that. It means that you could be paying taxes as a regular resident who is under the proverty line--zero. :blink:

    Now, even if you chose that last option, you are ALWAYS entitled to receive you Canadian pension or OAS. The OAS will be fully or partially paid depending on how many years you have lived in Canada after your 18th birthday—full pension is 40 years.

    * meaning that you did not declare your non-residency for tax purposes.

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