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1. Left Canada in March, 2020. I thought I was a factual resident of Canada for tax purposes, but I am not! Been filing as a Canadian tax resident since then.
2. I have NO property in Canada. But a bank account in Canada on which bank account interest was earned and T5 slip was issued. I didn't inform the bank either about my non residency. So NO 25% withholding tax was held back by the bank.
3. I have no Income either abroad or in Canada besides this Canada bank interest.
So I have been filing as a tax resident of Canada from 2020 to 2024 with this Canadian bank interest . It's below Canadian personal exemption limit. So all the 5 years I filed the return as a Resident, I did not owe any taxes. But I was a non resident, so should not have filed as a resident.
4. Claimed GST/HST credit, Ontario Trillium Benefits and Carbon Climate Rebate for these 5 years.
5. How do I rectify this now? Do I just file one T1-ADJUSTMENT form for the year 2020 and set my departure date as March 2020 on it? And the CRA will automatically drag it from there upto December 2024 automatically?
6. Or do I file a T1-ADJ1 for each year 2020 to 2024? I guess not.
7. Also do I have to refile a T1-Amended return for Year 2020. Or any other years after that? Or just the T1-ADJUSTMENTS form filled for Year 2020 is enough stating the departure date as March 2020.
8. What happens to the 5 wrong returns I filed as a resident from 2020 to 2024. Do they automatically become null & void?
9. After CRA processes my T1-ADJ for 2020 showing my March 2020 departure date. Do they send me an official reassessment NOA showing all the benefits & credits I have to pay back for 5 years + 25% withholding taxes on the bank interest for 5 years?
10. Will the NOA officially say that I am a Non Resident for Canada tax purposes from year 2020 onwards and no further returns need to be filed from here onwards, unless I come back to Canada and become a Resident again.
Thanks & Best Regards,
Altaf.
Dear Altaf,
Thank you for your detailed email. It sounds like you've put a lot of thought into this, and your summary is very helpful in understanding the situation.
Here’s a breakdown of how best to proceed:
1. Residency Correction Requires NR73 Form
To officially update your tax residency status, the CRA will not revise your departure date on a return that has already been assessed simply through a T1 Adjustment Request (T1-ADJ).
Instead, you’ll need to complete and submit Form NR73 – Determination of Residency Status (Leaving Canada).
The CRA will review your submission and issue a formal residency determination letter, confirming your non-resident status as of your departure date (March 2020). Once this letter is issued, we can move forward with correcting the previous returns.
2. After CRA Confirms Non-Residency
Once the NR73 is processed and the CRA confirms your non-resident status as of March 2020, the next steps will likely include:
- Reassessments of the T1 returns filed from 2020 to 2024 to reflect your non-resident status.
- Repayment of ineligible benefits claimed during those years (e.g. GST/HST credit, Ontario Trillium, Climate Action Incentive).
- Possible Part XIII withholding tax (25%) on Canadian-source interest income (unless reduced by a tax treaty with the country where you've been living).
Depending on how CRA proceeds, we may need to file T1-ADJ forms for 2020 through 2024 to help them reassess the returns correctly once the NR73 decision is issued.
3. Do You Need to Refile Amended T1 Returns?
If the only corrections involve residency status and benefit claims, the CRA will typically reassess based on the NR73 outcome and/or T1-ADJ submissions—full T1 amended returns are generally not necessary unless CRA specifically requests them.
4. Will CRA Confirm You Are Non-Resident Going Forward?
Yes—once the NR73 is reviewed and a determination is issued, the CRA's letter will serve as the official confirmation of your non-resident status from the specified date onward. Unless your situation changes (e.g. you re-establish significant ties to Canada), you do not need to file future Canadian tax returns unless you have Canadian-source income subject to tax.
5. Recommended Next Step
The immediate next step is to prepare and file the NR73 form with a detailed explanation of your situation. I can assist with completing and submitting this on your behalf to ensure it’s properly prepared.
Let me know if you’d like help preparing the NR73 or if you have any questions about what documentation to include.