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Hi,

I would appreciate any help in answering the following problematic.

My mom is a pensioner and a non resident of Canada but she receives CPP. What are the possible sanctions if she doesn't file the tax report regarding her pension since she won't be living in Canada anymore. Can CRA freez her monthly payments or any other actions?

Thank you.
 

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I've read that CRA has garnished employment wages where the combination of the tax bill plus penalties for late payment and interest have been large enough. It seems logical that they could do the same with CPP as this would be a Canadian gov't dept to dept request.

First question ... are you sure she is a NR in CRA's eyes?
Did she file the paperwork with CRA and file a final tax return that including paying the "departure tax" on capital property held?


If so, my understanding is the she has to notify the gov't department that pays CPP that she is a NR so that the appropriate NF withholding tax is applied to the CPP payments. She would also have to notify any financial institutions holding assets that are being paid out (a RRIF for example).

After that, there should be no requirement to file a Canadian tax return as the withheld tax should be the appropriate amount, which avoids owing taxes. She may choose to file because in some situations, filing can result in a refund.

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html


Without more details of why there is a concern that there might be unpaid taxes owing ... it is hard to provide more than general info.

Cheers
 
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