Revenu Quebec - Tax implications when moving from Quebec to Europe

BillyMontreal wrote: ↑ I emigrated from Quebec to Europe in October 2015.
I know that I'm not required to file an income tax return, at least for Quebec (Not sure about Canada)

Now (2018), Revenu Quebec sent me a letter demanding I file and income tax return for 2015.
I called and notified them that I had emigrated to Europe in 2015, they modified the address on my file successfully, but RQ agents said that since I've already received the letter asking to file a return... "I should do it", "it would be best to do it"
Even though they now know that I live in Europe, they keep using words that seem more in line with convenience (Theirs) and not the proper procedure.

I read in this forum a post where someone mentioned that he/she received the same letter after a couple of years after moving from Quebec to Ontario, I know it's not exactly the same, but at least in regards to leaving Quebec it might be similar, this person sent a Notice of Assessment and that fixed the issue.

Who told you that you don't need to file tax returns for 2015? This is rather more complicated than moving from one province to another.

The general rule is that you are subject to provincial and federal taxes on your worldwide income for the period during which you were a resident of Quebec/Canada, i.e. January-October 2015, and then only subject to provincial and federal taxes on income from Canadian sources (as a non-resident). However, the general rule is overridden by existing tax treaties between Canada and the country you now reside in.

Some info here (French only):
Vous avez quitté le Québec pour un autre pays que le Canada

So the big questions are (1) did you earn any income (in Canada or elsewhere) from January to October 2015, and (2) how are those sources of income dealt with in any Canada-XXX tax treaties with your host country? I am not a tax treaty expert but for salary and other professional (self-employment) income, the treaty most likely stipulates that amounts are taxable in the country/province where they were earned i.e. you still need to file returns to declare Canadian income prior to your move.

Agree with Cabro. You are still liable for taxes during the period in 2015 that you resided in Canada. So that means a Quebec return and a federal return. Don't know why anyone would tell you otherwise.

Maybe he thought he doesn't have to file tax returns because he wasn't in Canada on 31st December ...

I haven't been back to Canada in 4 years and I file taxes every year. Are you serious op?

My apologies for the delay responding, I've been with access to the Internet.

"Who told you that you don't need to file tax returns for 2015? This is rather more complicated than moving from one province to another."
You are absolutely right on that, that was my mistake, I had the perception that leaving a province was the same in all cases, I know better now.
To be honest, my wrong understanding was based on courses I've done myself with H&R Block and Revenu Quebec themselves, but thinking back now, there was never a clear differentiation between leaving Quebec to go to another province or leaving Quebec to go to another country altogether.

Thank you for the link!

"So the big questions are (1) did you earn any income (in Canada or elsewhere) from January to October 2015, and (2) how are those sources of income dealt with in any Canada-XXX tax treaties with your host country? I am not a tax treaty expert but for salary and other professional (self-employment) income, the treaty most likely stipulates that amounts are taxable in the country/province where they were earned i.e. you still need to file returns to declare Canadian income prior to your move."
1= Yes (9 months in Canada)
2= N/A (Just Canadian source income)

I had an appointment with a tax specialist and confirmed that if I moved to a different country (emigrating), I have to file an income tax return with the Province of my last address in Canada (And of course also file a federal income tax return)

I did it right away and I've already sent my returns.

Thank you for taking the time to give me advice!

Billy

OttawaGardener wrote: ↑ Agree with Cabro. You are still liable for taxes during the period in 2015 that you resided in Canada. So that means a Quebec return and a federal return. Don't know why anyone would tell you otherwise.

Thanks for your input, it was my own mistake.
Courses I did years ago made it clear in my mind that I didn't have to file a return, I imagined that since they hold every week of employment certain amount, that amount could be covering their taxes. Therefore making it possible that Revenu Quebec would not demand a return.

iamthebest wrote: ↑ Maybe he thought he doesn't have to file tax returns because he wasn't in Canada on 31st December ...

Yes, that was the point, I've been told that you would only file a return "wherever" you live on December 31st.

BiegeToyota wrote: ↑ I haven't been back to Canada in 4 years and I file taxes every year. Are you serious op?

It was an honest mistake, which I've handled right away sending my apologies and the income tax return to the tax offices.

Thank you for your responses.

To summarize, in case anyone has any doubts about this specific details

When a person emigrates from Canada (Moves from Canada to another country):
1) Has to file an income tax return with Canada (federal)
2) Has to file an income tax return with the province of his/her last address in Canada

If the person moves from one Canadian province to another Canadian province:
1) Has to file an income tax return with Canada (federal)
2) Has to file an income tax return with the province where he/she was officially living on December 31st of the year in question.

BillyMontreal, just a point of clarification... only Quebec requires a separate tax return. Residents of all other provinces and territories file one federal tax return, but pay their provincial/territorial taxes on that same return. That's why the December 31 rule applies for people who move within Canada, to simplify which return to file when someone has "resided in" 2 (or more) provinces or territories in a calendar year.

Glad you got sorted out.

OttawaGardener wrote: ↑ BillyMontreal, just a point of clarification... only Quebec requires a separate tax return. Residents of all other provinces and territories file one federal tax return, but pay their provincial/territorial taxes on that same return. That's why the December 31 rule applies for people who move within Canada, to simplify which return to file when someone has "resided in" 2 (or more) provinces or territories in a calendar year.

Glad you got sorted out.

Good point to keep in mind, thank you!