Canada Expat Tax Tip 2 – Common Mistakes Canadian Expats Make

Moving abroad doesn’t free you from the CRA’s radar. Many Canadians run into tax problems because of these avoidable mistakes:

1️⃣ Assuming You’ve Cut Ties Automatically
Leaving Canada doesn’t automatically make you a non-resident.
🚩 The CRA looks at ties like:

Home in Canada

Spouse/children who remain

Bank accounts or provincial health coverage
👉 Details: Leaving Canada (emigrants) – Canada.ca

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2️⃣ Forgetting to File a Departure Return
If you become a non-resident, you should file a departure return.

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3️⃣ Double Taxation from Ignoring Treaties
Canada has a wide network of tax treaties.
➡ Example: Without claiming treaty relief, employment or rental income may be taxed both in Canada and your host country.
👉 Treaty info: Tax treaties – Canada.ca

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4️⃣ Poor Record-Keeping
The CRA may review your residency status years later. Keep:

Travel records (entry/exit dates)

Proof of foreign residence (leases, visas, bills)

Tax slips & assessments abroad

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5️⃣ Overlooking Departure Tax
When leaving permanently, you may face departure tax (deemed disposition of worldwide assets).

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✅ Felix Tip: Confirm your residency status before leaving. File your departure return, rely on treaty relief, and keep strong records to protect against CRA reassessments.

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