I’m doing a 2017 T1 for a young person who moved to the US in early 2018. He qualifies for the GST credit based on his 2017 income but I want to indicate that he isn’t applying for it (since he won’t be eligible after moving to the US). I know prior T1 versions had a check box where you could indicate whether or not you were applying for the GST. Is there a way to do this on the 2017 T1 forms?
No, the government does it automatically now.
I realize that but CRA won’t know that he’s a non-resident as of March 2018 until we file his 2018 tax return. I just wanted to head off the payment of any GST credits for July 2018 and subsequent periods. Looks like we’ll have to call CRA.
That’s the only way - to contact them
Client must contact CRA to notify them.
Kevin,
If your client is changing residency status then fill out the form re Determination of Residency when leaving Canada. You can also send a T1 2018 Stub Year with exit date for stock piling at CRA T1 Processing.
The Leaving Canada form will handle all the GST and other benefits.
Alternatively send a letter with proof of exit attached re Benefits declined.
Otherwise, if your client is not changing residency status and is still considered to be a Resident of Canada for tax purposes, then the following hold true:-
- Still required to file Canadian Tax Return.
- Still eligible to receive benefits.
Determining Residency
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
GSTC Eligibility upon becoming a resident
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc151.html
Leaving Canada (emigrants) - Canada.ca - Government of Canada
Leaving Canada
In order to become an EMIGRANT for income tax purposes you must SEVER ALL TIES WITH CANADA.
Apr 17, 2018 - Receiving benefits and credits . It’s important that you tell the Canada Revenue Agency ( CRA ) the date you leave Canada . Generally, as a non-resident, you are not eligible to receive: the goods and services tax/harmonized sales tax ( GST /HST) credit ; and.
https://www.canada.ca/en/.../tax/...leaving...canada.../leaving-canada-emigrants.html
Are you an emigrant?
Generally, you are an emigrant for income tax purposes if:
- you leave Canada to live in another country; and
- you sever your residential ties with Canada.
Severing your residential ties with Canada means that you do not keep your main ties with Canada. This could be your case if:
- you dispose of or give up your home in Canada and establish a permanent home in another country;
- your spouse or common-law partner or dependants leave Canada; and
- you dispose of personal property and break social ties in Canada, and acquire or establish them in another country.
If you leave Canada and keep residential ties in Canada, you are usually considered a factual resident, and not an emigrant. However, if you are also considered to be a resident of another country with which Canada has a tax treaty, you may be considered a deemed non-resident. Deemed non-residents are subject to the same rules as emigrants.
For more information on residential ties and residency status, go to Determining your residency status.
When do you become a non-resident?
When you leave Canada to settle in another country, you usually become a non-resident for income tax purposes on the latest of:
- the date you leave Canada;
- the date your spouse or common-law partner and/or dependants leave Canada; or
- the date you become a resident of the country you settle in.
If you lived in another country before living in Canada and you leave Canada to resettle in that country, you usually become a non-resident on the date you leave Canada. This applies even if your spouse or common-law partner temporarily stays in Canada to dispose of your home.
For more information about your tax obligations, go to Non-residents of Canada.
What you need to do when you become an emigrant
If you still have bank accounts in Canada or amounts being paid to you from Canada, you are required to notify any Canadian payers and your financial institutions that you are no longer a resident of Canada.
Do you have to file a tax return?
Complete and send a Canadian tax return to the Canada Revenue Agency (CRA) if:
- you owe tax; or
- you want to receive a refund because you paid too much tax in the tax year.
For more information, go to Do you have to file a return?.
Notes
If you determine that you do not have to file a return, you should let the CRA know the date you left Canada as soon as possible.
If you owned properties or goods when you left Canada you may have to report a capital gain.