Canadians: Healthcare (OHIP), CRA, and Off Shore Banking
Dec 16, 2017 1:14:24 GMT
calgarynb likes this
Post by StarboyX on Dec 16, 2017 1:14:24 GMT
Everyone has a different situation when leaving Canada, so the following will vary for some:
1. Healthcare: If and only if you don't have any dependents left in Canada, you don't have to cancel healthcare. I have asked several accountants in Ontario about this, including mine, and they've all said the same thing. Since I left Ontario, I'm more familiar with OHIP policies:
OHIP premiums are built into provincial taxes. There is no additional premium to be paid.
If you plan to be outside Canada for more than seven months in any 12-month period you can keep your OHIP covee for up to two years if you: have a valid health card or will make Ontario your primary home or will be in Ontario for at least 153 days a year in each of the two years immediately before you leave the country.
Furthermore, when you travel outside of Canada, OHIP will pay for insured, emergency health services that meet specific criteria. OHIP pays a set amount for these services. There are many health services that are not covered by OHIP when you are outside of Ontario.
2. CRA: You need to talk to your accountant and determine what primary and secondary ties you'll have once you leave, and then determine if you're factual or non factual.
If you retain your primary residence, or have rental property, or other land/property assets, you have primary ties.
It's in your best interests to get advice from an estate planner.
The quick fix solution is to transfer ownership and register all assets in a company name, that must be incorporated, and become a director.
This directly shields you, protects your investments, and is legal.
Now if you sell all assets, including vehicles, and have no dependents in Canada, you have no primary ties.
You can maintain bank accounts and credit cards, along with your driving license, passport, and yes, healthcare.
These are considered secondary ties.
If you're deemed a non-factual resident of Canada, income reporting is both optional and completely voluntary.
You can legally report NIL for income, or declare the full amount, without having to pay taxes in either situation, if and only if you are deemed a non-factual resident of Canada with no primary ties, including no dependents.
3. Off-Shore Banking:
Barclays and HSBC offer off-shore in Jersey and Isle of Man.
However, they require both your passport details and SIN, which is then shared with the CRA in Canada, so it defeats the purpose.
Furthermore, there is a lot of paperwork, and between the two, Barclays has higher service fees and charges.
Also, we all know HSBC has "GlobalVIew", the feature that allows you to link HSBC accounts from the world and transfer funds between your accounts in real-time, with no fees.
(Yes, this really does exist and isn't something out of the movies ...)
Here's the bad news: that feature is no longer available with SABB, and SABB is the HSBC subsidiary in Saudi Arabia.
Another option is RBC USA, the US subsidiary of RBC Canada.
If you're an existing RBC Canada client, you can open an account online.
Here's the real advantage for Canadians: if you open an account with RBC USA, you can also apply for an RBC USA credit card.
Canadian and US credit history are neither the same nor related, hence, you can build your US credit history.
Down the road if you plan to purchase real estate in the US, now your US credit history has already been established with RBC USA.
The deal maker is this, if applicable: when applying for a US mortgage, from RBC USA, they will look at your Canadian credit history, in addition or VS just your US credit history, again assuming it's been established.
That is, you can apply and get approved for a US mortgage from RBC USA, based on your Canadian credit history!
1. Healthcare: If and only if you don't have any dependents left in Canada, you don't have to cancel healthcare. I have asked several accountants in Ontario about this, including mine, and they've all said the same thing. Since I left Ontario, I'm more familiar with OHIP policies:
OHIP premiums are built into provincial taxes. There is no additional premium to be paid.
If you plan to be outside Canada for more than seven months in any 12-month period you can keep your OHIP covee for up to two years if you: have a valid health card or will make Ontario your primary home or will be in Ontario for at least 153 days a year in each of the two years immediately before you leave the country.
Furthermore, when you travel outside of Canada, OHIP will pay for insured, emergency health services that meet specific criteria. OHIP pays a set amount for these services. There are many health services that are not covered by OHIP when you are outside of Ontario.
2. CRA: You need to talk to your accountant and determine what primary and secondary ties you'll have once you leave, and then determine if you're factual or non factual.
If you retain your primary residence, or have rental property, or other land/property assets, you have primary ties.
It's in your best interests to get advice from an estate planner.
The quick fix solution is to transfer ownership and register all assets in a company name, that must be incorporated, and become a director.
This directly shields you, protects your investments, and is legal.
Now if you sell all assets, including vehicles, and have no dependents in Canada, you have no primary ties.
You can maintain bank accounts and credit cards, along with your driving license, passport, and yes, healthcare.
These are considered secondary ties.
If you're deemed a non-factual resident of Canada, income reporting is both optional and completely voluntary.
You can legally report NIL for income, or declare the full amount, without having to pay taxes in either situation, if and only if you are deemed a non-factual resident of Canada with no primary ties, including no dependents.
3. Off-Shore Banking:
Barclays and HSBC offer off-shore in Jersey and Isle of Man.
However, they require both your passport details and SIN, which is then shared with the CRA in Canada, so it defeats the purpose.
Furthermore, there is a lot of paperwork, and between the two, Barclays has higher service fees and charges.
Also, we all know HSBC has "GlobalVIew", the feature that allows you to link HSBC accounts from the world and transfer funds between your accounts in real-time, with no fees.
(Yes, this really does exist and isn't something out of the movies ...)
Here's the bad news: that feature is no longer available with SABB, and SABB is the HSBC subsidiary in Saudi Arabia.
Another option is RBC USA, the US subsidiary of RBC Canada.
If you're an existing RBC Canada client, you can open an account online.
Here's the real advantage for Canadians: if you open an account with RBC USA, you can also apply for an RBC USA credit card.
Canadian and US credit history are neither the same nor related, hence, you can build your US credit history.
Down the road if you plan to purchase real estate in the US, now your US credit history has already been established with RBC USA.
The deal maker is this, if applicable: when applying for a US mortgage, from RBC USA, they will look at your Canadian credit history, in addition or VS just your US credit history, again assuming it's been established.
That is, you can apply and get approved for a US mortgage from RBC USA, based on your Canadian credit history!
