Whether you’re leaving Canada to retire under sunnier skies, moving on to a new job, or simply spending time outside of Canada, there are some things you need to know before packing your bags.

This bulletin will help you answer some of the more commonly asked questions such as: Who’s considered to be a resident of Canada? Will I still be liable for Canadian income taxes? And what happens to my assets when I leave Canada?

Canada levies taxes based upon residency – not upon citizenship, the way some other countries do (the United States, for example, taxes its citizens and residents).

This means that, if you’re considered to be a resident of Canada for tax purposes, you’ll pay tax to Canada on all your worldwide income.

The problem is determining residency isn’t just a question of looking up your mailing address. Some people who leave Canada don’t sever their ties with Canada properly and end up still being considered a resident here, despite the fact they no longer live here.