Principal Issues: 1. If a Canadian citizen leaves Canada, to live in a foreign country that has no tax treaty with Canada and this Canadian citizen is receiving CPP and OAS, do the payments continue to be mailed to this former Canadian citizen in the new country of residence?
2. If payments of CPP and OAS continue to be made, how much is withheld for income tax to the Canada Revenue Agency in percentage, if monthly total CPP and OAS payments total $1,500?
3. If investments in Canada total $2,000 per year, how much is withheld for income tax to the Canada Revenue Agency in percentage?
4. Can this Canadian citizen return to Canada to take up residency without process, other than notification to Canada Revenue Agency?
5. Can this Canadian citizen continue to own investments or property in Canada if moving to and becoming resident in another country?
6. Am I correct in interpreting the Guide that if a home is purchased in a foreign country, and the home has a value of under Canadian $100,000, that no income tax, Canadian, is charged on the home, even if it is sold? Would Capital Gains apply?
Position: 1. Yes.
2. 25% subject to treaty or a section 217 election.
3. Depends on the particular situation.
4. Unable to comment.
5. Depends on the particular situation.
6. See response.
Reasons: 1. Based on our research. See response.
2. Legislation
3. Legislation
4. Question is not with the scope of CRA.
5. See response.
6. See response.