June 13 - Canada Egypt Business Council

CEBC In Focus
When selling a Canadian property as a non
-resident there are specific rules that are important
to consider. The first rule to consider
is that as a non-resident a T2062 is required
to be filed within 10 days of the date
of sale of the property requesting a clearance
certificate from the Canada Revenue
Agency (CRA). If this form is not filed,
there is a $2,500 penalty that can be applied
by the CRA to any non-resident owners. If
a couple owns a property jointly, this could
result in a $5,000 penalty.
Recently, in order to determine if a form T1161 was filed, the CRA
has been cross referencing the filing of the T2062 with the Canadian
part-year resident return filed by the taxpayer. The T1161 form is required
to be filed for the year of departure from Canada when an individual
becomes a tax non-resident. This form discloses the ownership
of Canadian property. If you departed in a prior year and did
not file this form, the CRA is now referencing back to the tax returns
you filed for your departure year to determine if the form
T1161 was filed. The CRA could impose a $2,500 penalty per taxpayer.
If a couple owns a property jointly, this could result in a
$5,000 penalty.
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