How to file taxes on Bank interest issued on T5 from 2012 to 2017 to non-residents

Question

2062 viewsOctober 22, 2019Personal Tax

0

George (anonymous) Posted October 16, 2019

I became a non-resident in 2011 and moved to Hong Kong. I updated my bank with my Hong Kong address and thought they would withhold my taxes on my bank interests so I ignored the T5 the bank mailed to me. I am planning to return to live next year and want to make sure my tax status is in order. I guess I am owing CRA the taxes on my bank interests. What should I do now?
Also, I have savings earned while I am a non-resident and need to bring it over before my return next year. When should I do this? Can I transfer my savings to Canada now or do I have to wait only after my tax status is cleared with CRA?

1 Answer

score 0 · Answer 1 · 2019-10-22T15:35:18+00:00

Interest paid by a Canadian bank / Canadian financial institution to a tax resident of Honk Kong is not subject to withholding tax. In other words, you have no tax obligation to the CRA in respect of the interest received. Furthermore, you should ask your bank to cancel the incorrectly issued T5 slips and replace them with NR4 slips, since you are a non-resident of Canada. If your bank refuses, then write a letter to the International Tax Office of the CRA to explain the situation. However, do not file a Canadian income tax return in respect of interest income received from Canadian sources.

You can transfer your savings now if you wish. This will not make you a tax resident of Canada.

How to file taxes on Bank interest issued on T5 from 2012 to 2017 to non-residents

1 Answer

Mississauga's Thought Leader

REQUEST A FREE CONSULTATION

Pin It on Pinterest