Non Resident During Year

Tax Topics
1

Client of mine was resident in Canada Jan 1 to March 31 2022 and worked for a canadian employer. After moving to Sweden in April he told the CRA he is non resident and still worked for the same canadian employer. Canadian employer issued a t4 for the year of $100,000 and taxes withheld during the ENTIRE year of $20,000. Of the T4 Jan 1 to March 31 2022 total income was $25,000 and income between April 1 2022 to Dec 31 2022 was $75,000. Do I put on line 25600 additional deductions of $75,000? thus reducing the taxable income to 25k and he will basically be getting back all the taxes withheld in his pay between April 1 to Dec 31 2022?

Also, client had rental property in 2022, do I do the t776 for the rental property as normal on his 2022 tax return as a non resident for ONLY the first 3 months? or do I do it for the entire year? He did collect rent however did not file NR4 or Nr6 or withhold or pay any of the 25% taxes on gross etc… What are the options here? Do I go to the CRA and file for the NR6 for 2023 tax year and just pay then the 25% on gross which was collected between April to Dec and tell the clients there will be 10to 20% late fees on the payments missed on gross rent between april to Dec? Can I sitll file NR6 for 2023?

2

Sounds exactly like this client is suffering from the delusion that he is a qualified accountant specializing in tax or a tax lawyer, as he is just taking multiple wrong guesses about his real legal tax situation.

Nobody in this situation should be basing tax reporting on guesses, but rather the whole case file facts should be analysed as a whole, and in detail, by a person very familiar with the wording of the entire income tax act. Tax Residence is a tricky thing.

If you are trying to efile on the (likely incorrect) basis you say you are, you are going to find that you are not allowed to efile.