Voyageur 165
Departure Tax Gets Less Mysterious, Credit Files Don't Travel Well.
News for residents of the “11th province”: Canadians abroad.
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Departure Tax Gets Less Mysterious
Canada's departure tax is back in the personal-finance pages, which means one of the least fun parts of leaving Canada is having another little moment in the sun. The Globe and Mail tried to present it as less of an extra tax than Canada's last chance to make a cash grab tax gains before assets move out of CRA's reach.
CRA's emigrant rules might be worth bookmarking. Normally, an individual becomes a non-resident on the latest of the date s/he leaves Canada, a spouse or dependants leave, or the person becomes resident somewhere else. Severing residential ties is the test, not buying a one-way ticket and declaring yourself financially free as your condo, spouse, and bank life stay behind.
The conclusion is that you’d better make sure you know that your moving date, the assets you hold, and the ties you keep can matter more than just throwing a bangin’ farewell party.
Read more: The Globe and Mail / Canada Revenue Agency
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A photo from the old country:
Credit Files Don’t Travel Well
MoneySense has a reminder that Canadian credit history exists in its own little universe. Equifax and TransUnion build scores from Canadian files, and the big levers should be familiar enough - pay on time, keep the balances low, leave old (aged) accounts open, and try to keep your use of credit available to you below 30%.
The expat angle can be an irritation though, because a Canadian who spends years abroad can come home with a perfectly adult life, a salary, and a foreign credit record that Canadian lenders will treat like a postcard from another planet. MoneySense wrote the article for newcomers to Canada, but the mechanics will apply just as surely for returnees or those who are trying to keep Canadian banking warm from abroad.
Nothing about a secured card, a live chequing account, or periodic credit-report check is glamorous, but neither is getting rejected for an apartment because your file went dark while you were away.
Read more: MoneySense