My client’s parents 80 plus are on PR status. They have gone back to home town in 2020 which is more than 182 days. There is no property or any king in their name in Canada. They do have the son and son’s family, Should I file the return as resident or non resident. I was thinking to file as non-resident. Someone told me that we can also file as resident because they still have the ties. Any suggestions please
Since there are serious penalties for misrepresenting tax residency status, and particularly serious offences for collecting credits to which they may not be entitled, one hopes that they filed the appropriate information with the Provincial authorities (medical etc) and CRA and Service Canada at the appropriate times.
My suggestion would be to encourage them to comply with all relevant laws, and for them to provide evidence backing that up to you.
(Tax returns should never be filed on a “someone told me” basis, or on any other kind of guesswork basis, as all the facts and evidence needs to be gathered first for a particular case).
Also, there is the big mystery of possible non-compliance and possible required paper-filing regarding 2020 tax year hanging in the air.
Thank you Joe. 2020 was done as resident because they left towards the end of 2020. But COVID and circumstances did not allow to return. In fact mother passed away in Feb 2022. Father still has the intention of coming back. I know them personally and there is no hidden facts. Based on this, is it ok to file them as Non-resident. They will follow what I suggest. When he return anytime, I can file them as resident.
“Thank you Joe. 2020 was done as resident because they left towards the end of 2020. But COVID and circumstances did not allow to return. In fact mother passed away in Feb 2022. Father still has the intention of coming back. I know them personally and there is no hidden facts. Based on this, is it ok to file them as Non-resident. They will follow what I suggest. When he return anytime, I can file them as resident.”
No, I don’t think you should encourage them to lie when they sign and certify as true their tax returns.
If it were me, I would have an in depth discussion with the survivor, and also with the executor of the deceased, before taking on the engagement.
(Obviously, you would need to verify the authenticity of the Will etc also)
The facts of the file need to be carefully examined.
I am not encouraging anything wrong. It is never the intention. The client and the family is known to me personally and I want to do oit correctly. That is why I put the question. Is it ok to file as non-resident. Appreciate your prompt responses.
I have said all that I believe that it is possible that I can say about this generic file above already.
The one “client” is deceased, so you cannot do anything at all for them without authority.
Perhaps discussing it further properly with a Lawyer and a CPA will assist in moving it forward.
Good luck 