Departure tax

When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax).

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Are you an emigrant?

 

Generally, you are an emigrant for income tax purposes if you leave Canada to live in another country and you sever your residential ties with Canada.

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When do you become a non-resident of Canada?

 

When you leave Canada to settle in another country, you usually become a non-resident of Canada for income tax purposes on the latest of:
•    the date you leave Canada
•    the date your spouse or common-law partner and dependants leave Canada
•    the date you become a resident of the country you settle in

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Do you have to file a tax return?

 

Complete and send a Canadian tax return to the Canada Revenue Agency (CRA) if you owe tax or you want to receive a refund, because you paid too much tax in the tax year.