Left Canada in May 2021 – Did not file a Departure date and Emigrant return. How do I rectify this now?

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Michael F (anonymous) Posted 15 hours ago MadanCA Team edited answer 36 minuteutes ago

1. Left Canada in May 2021, did not file a Departure date or Emigrant return with CRA.

2. Been wrongly filing as a Resident since then. 2021, 2022, 2023 and 2024. When I was actually a non resident. All these 4 returns were assessed as Resident with no taxes owed. But I should have never filed them in the first place as I am a non resident.

3. OAS, CPP and Savings Bank Account interest is my only source of income in Canada. No Withholding tax was held on it as I did not inform Service Canada, CRA and Bank about my departure.

4. Because I filed as a Resident – I got Ontario Trillium Benefits, Carbon Rebate and GST qtrly credit. I will have to return them back.

5. Also withholding tax on OAS & CPP & maybe bank interest, I will have to pay back.

How do I fix it now?

1. NR73 form, should I send it? Lot of people are advising me against sending it as it unnecessarily complicates things.

2.Should I send a Cover letter explaining the situation. If so what documents should I include along with the cover letter?

3. Should I file a T1-ADJ1 for the year 2021 with the correct departure date and mail it to them? And CRA automatically drags it to years 2022, 2023 & 2024?

4. Or should I file a T1-ADJ1 for years 2022,2023 & 2024 also?

5. Should I call CRA and let them know about this, before I send any of the above documents? Will the call centre agent be able to fix this for me?

6. How will CRA communicate with me? I have an overseas address now. But I do have a mailing address in Canada where my relative can receive CRA documents for me

7. Will they communicate with me through My CRA Account? Where they can send me notices and documents? And I submit or upload documents there?

What is my first step:
1. Cover letter?
2. NR73 form with it? (Been strongly advised against it!)
3. T1-ADUSTMENT for the year 2021? Or no?

Wait for CRA to reassess and correct all the wrongly filed Resident return from 2021, 2022, 2023 and 2024? After I send the cover letter?

Thanks

1 Answer

score 0 · Answer 1 · 2025-05-09T20:47:43+00:00

Hi Michael,

Thank you for your detailed message and for outlining your situation clearly. You are correct that your Canadian tax filings from 2021 onward do not reflect your non-resident status, and we can help you resolve this.

✅ Summary of Your Situation

You left Canada in May 2021 and have been living abroad since, but filed as a Canadian resident for tax years 2021 through 2024.
You continued receiving CPP, OAS, and interest income with no non-resident tax withholding.
You also received GST/HST credit, Trillium, and Climate Action Incentive payments, which you were not eligible for as a non-resident.
You now want to correct your residency status, repay ineligible credits, and ensure proper withholding going forward.

🛠️ Step-by-Step Plan to Correct the Issue

1. Submit Form NR73 – Determination of Residency

Although Form NR73 is optional in many cases, it is required in your case because:

You filed as a resident for multiple years
The CRA has already assessed you as a Canadian resident
The CRA will not amend your departure date retroactively without first accepting an NR73

📄 With your NR73, include:

A cover letter summarizing your situation and stating your departure date (May 2021)
Supporting documents such as:
- Proof of foreign residency (visa, utility bills, lease)
- Timeline of your move and current ties to Canada
- Travel history or exit documents if available

Once processed, the CRA will update your residency status and trigger necessary reassessments.

2. File T1 Adjustments (T1-ADJ) – After NR73 is Accepted

Once your departure date is accepted, you can file Form T1-ADJ for 2021, 2022, 2023, and 2024 to:

Report the correct departure date
Remove ineligible benefit claims (GST, Trillium, CAI)
Ensure you’re treated as a non-resident for tax purposes

The CRA will issue Notices of Reassessment and provide instructions for repayment of benefits and overpayments.

3. File Form NR5 – To Reduce Withholding Tax on CPP and OAS

To ensure correct tax withholding on your CPP and OAS, file Form NR5 with the CRA. This form allows non-residents to:

Request a reduction or elimination of the standard 25% withholding tax
Apply Canada’s tax treaty with your new country of residence (e.g., many treaties reduce withholding to 0% or 15%)
Be taxed on a net basis, taking into account deductions such as medical expenses and pension income splitting

📌 Benefits of Filing NR5:

Prevents excessive tax withholding at source
Avoids the need to file a full T1 return just to recover over-withheld tax
Must be filed annually, ideally before January 1st of the tax year you want the reduction to apply

We will complete and submit the NR5 on your behalf as part of our service.

4. Notify Your Bank

To apply reduced withholding tax on your interest income, provide your bank with a completed Form NR301, which declares your residency under a tax treaty.

5. CRA Communication

The CRA can send mail to a Canadian mailing address (e.g., a relative’s) or update to your overseas address
You can continue to monitor activity and submit documents via CRA My Account
CRA call centre agents cannot make these changes — the residency correction must be handled through written documentation

💼 Our Assistance & Fees

We can handle the full process for you, including:

Completing and submitting Form NR73 with cover letter
Preparing T1-ADJ forms for 2021–2024
Preparing and submitting Form NR5 for pension withholding
Preparing Form NR301 for your bank
Coordinating all communication with the CRA and Service Canada

Left Canada in May 2021 – Did not file a Departure date and Emigrant return. How do I rectify this now?

1 Answer

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