Tax consequences when your client leaves Canada
Funda Dilaver Whether your client is a retiree seeking a warmer climate or a professional moving for work, there are tax consequences if they decide to leave Canada permanently. Under the Income Tax Act (ITA), Canadian residents pay taxes on their worldwide income. A non-resident of Canada is taxed only on certain Canadian-sourced income. Generally, your client becomes a non-resident if they meet the conditions of leaving Canada to live in another country and severing residential ties with Canada by: disposing of or renting their home in Canada and establishing a permanent home in another cou...