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Severing Ties With Canada When making the transition to the US , you must ensure you properly
sever your ties with Canada so you are not taxed in both countries.
If done improperly, you have the potential of creating untold complexities,
paperwork and the potential for double taxation. To sever
your ties with Canada , you should review the checklist below for
those items that pertain to you. The key is to ensure you
move your community of interest, vital interests, family and social
relations, cultural and other activities, place of business and
place of property administration clearly from Canada to the US .
The Revenue Agency does not look at any one item in particular but
rather, an accumulation of things that they look at together to
determine your residency. At times, you may be asked to fill out
Form NR73 - Determination of Residency Status. The Revenue Agency
uses this form to "determine" if you are still a resident of Canada
for tax purposes. This form is designed to be intentionally tricky
so it is well advised to get competent assistance in filling it
out as you don't have a lot of options afterwards if it is denied.
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Move your spouse and children at the same time you move if
possible.
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Sell your principal residence.
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Take all your personal possessions with you, especially expensive
and cherished items.
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Terminate all memberships to churches, civic leagues, clubs,
cultural and other religious organizations.
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Terminate memberships to all professional associations.
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Close all chequing and savings accounts except those for
convenience only and ensure they are converted to a non-resident
account.
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Sell or "wind up" any business interests (except as needed
for immigration strategy).
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File a Canadian exit return.
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Terminate all family allowance or Child Tax benefit payments.
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Terminate all Canadian credit card accounts.
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Mail in your Provincial drivers license.
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Terminate your Canadian auto insurance and Provincial auto
registration.
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Notify your Provincial health care provider.
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Notify the post office of your address change in the US.
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Close out all post office boxes and terminate any other addresses
in Canada . Do not have any mail addressed to you delivered
to a Canadian address, including family!
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Close out all safety deposit boxes.
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Terminate all magazine, newsletter subscriptions or inform
them of your address change.
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Notify all financial institutions of your transition to the
US.
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Terminate all utility services (electric, cell phone, telephone,
internet access, cable).
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Do not make frequent or regular visits to Canada or remain
up there for an extended period of time. Try to remain
outside of Canada for as long as possible once you leave.
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Establish ties in the US by ensuring you do the reverse of
all the items above like get a US immigration status, a drivers
license, registering your auto, buying a home, etc.
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