Leaving Canada – Tax Implications and Departure Tax

When a Canadian taxpayer ceases to be a resident of Canada, he is deemed to have disposed of each property owned by him at fair market value. He is then deemed to have reacquired his property at fair market value.  In other words, the taxpayer potentially owes « departure tax », usually taxes on capital gains.  There are, however, many exclusions and ways to mitigate the effect of this rule.

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Timing and conditions for a discharge from bankruptcy

The Bankruptcy and Insolvency Act (BIA) provides for several different situations for which a bankrupt can be discharged from his or her bankruptcy, the basic principle being that after a certain period of time, the bankrupt earns the right to be discharged from his legal obligations to pay his debts and resume normal life.  There are exceptions and variables to this principle.

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Reimbursement Agreement

Taxation authorities are known to be efficient, quick and powerful when it comes to the collection of taxes owing…Various tax laws grant astronomical powers to collection officers, and the latter will not hesitate to make use of them in a timely manner.

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Access to Your Tax File Information

The Canada Revenue Agency is required by law to give a taxpayer a complete copy of his tax file.

It is true that under various laws respecting access to information, taxation authorities have the obligation to cooperate and to provide your file information to you.  Many taxpayers are not aware of these provisions; however, they are of essential importance in a tax dispute.

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