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The person left Canada and become a non-resident in 2016. She continues to receive T4A, T4OAS, T4A(P), files her Income Tax Return and pays Canadian tax. In the country of her residency now(Australia), she is filing the Income Tax Return and showing the Canadian pension and paying the tax again. What are the rules for this kind of situation? Is the non-resident person who receiving only pension income has to file Canadian tax every year and pay tax? Or she has to file in the country where she has a permanent status and Canada has a tax treaty with that country? She doesn't have any other income besides the Canadian pension. Thank you.
Since she became a non-resident of Canada, she should contact her Pension Plan Administrator and Service Canada to inform them about her non-resident status. In this manner, the Payer in Canada will deduct taxes at source from the pension payments made to her. The rate of tax is 15% for periodic pension payments and 25% for lump-sum withdrawals from a pension plan, pursuant to the Canada-Australia tax treaty. So long as tax is properly deducted, she does not have to file a Canadian tax return to report her Canadian pension income.