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I am a non resident. Never been a residsnt and never lived in canada. Own a investment property and have been filing 216 returns for the past few years.
When i recieve the notice of assessment every year, i see the following:
Explanation of changes and other important information
Based on the information you gave us, we allowed you the basic personal amount of $15,705
We recalculated your non-refundable tax credits and changed your total on line 35000 from $0 to $2,355.
It basically keeps treating me as a resident and keeps giving me the basic personal amount every year and then the non refundable credits bring down my income and i keep reciciving refunds.
Not sure why they keep doing that. It has been a few years. Not sure what to do.
I have been filing nr4, nr6, uht and 216 consistently, so not sure why they keep adding the basic personal amount in the assessment.
Please help not surw what to do.
Hi Sami,
Thank you for your question.
You are correct — non-residents who file a Section 216 return are not automatically entitled to claim the basic personal amount (BPA) unless they meet certain conditions. The CRA may erroneously allow the BPA if their system is treating you as a resident or if your return does not clearly indicate your non-resident status.
Why This Is Happening:
Even though you file NR6, NR4, UHT, and 216 returns, the CRA’s system may still be incorrectly categorizing you as a factual resident or deemed resident, especially if:
- Your address on file with CRA is a Canadian one.
- You have not explicitly stated your non-resident status or country of residence on the Section 216 return.
- The software or tax preparer left Box 10 (or equivalent) unchecked or incomplete.
Why This Matters:
Claiming the BPA when you are not eligible for it could lead to reassessments or clawbacks in the future. The CRA may one day correct the error and reverse the non-refundable credit, resulting in tax owing with interest.
What You Should Do:
1.Review your past Section 216 filings to confirm that you have clearly indicated your non-resident status.
2.Submit a letter to CRA (International and Ottawa Tax Services Office) explaining the issue and requesting correction of your residency status on file.
3.Include a Request for Adjustment (Form T1-ADJ) if you want to proactively correct past returns.
4.For future filings, ensure that your country of residence is disclosed on Page 1 of the T1159 (Section 216 return) and that no BPA is claimed.
5.Consider attaching a cover letter to future 216 returns stating: “I am a non-resident of Canada and not entitled to the basic personal amount.”
If you'd like professional help to review or amend your prior returns, feel free to book a consultation with us at https://madanca.com/contact-us.