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My bank wants to close my account because I'm a non-resident now
September 6, 2012
5:11 pm
The Scrooj
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What's the deal with that? I'm still a Canadian citizen. I'm living outside Canada, informed my bank of this (because of investment interest accruing on my savings account), and now they tell me they must close my account! I don't get it. Is it up to the discretion of each bank to do this? Thanks Big Banks! I love you!

September 8, 2012
6:35 pm
88kanaka
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The Scrooj said:

What's the deal with that? I'm still a Canadian citizen. I'm living outside Canada, informed my bank of this (because of investment interest accruing on my savings account), and now they tell me they must close my account! I don't get it. Is it up to the discretion of each bank to do this? Thanks Big Banks! I love you!

Do you have family in Canada that you could use for a mailing address??

September 8, 2012
11:27 pm
Doug
British Columbia, Canada
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I don't know the specific rules on accounts for non-residents. I know where I work, it is possible to open an account for a non-resident of Canada but it is also a requirement for you to provide a SIN for interest-bearing deposit accounts. As well, because non-residents aren't necessary guaranteed the same 'consumers' rights' in terms of the Bank Account as Canadian residents, I'd definitely recommending checking with FCAC (http://www.fcac.gc.ca), one of the Banks' regulators, to see if the banks can do this.

If they can, then he would likely need more than a Canadian mailing address. He'd likely need to prove residency. Having an RRSP would prove residency, but then, his application for an RRSP would likely be denied by the CRA come tax time and he is not a Canadian resident for tax purposes and therefore ineligible for an RRSP.

It's important to distinguish that, in this case, we are talking about being a "non-resident for tax purposes" and not the broader "non-resident" terminology, correct? For instance, a Canadian citizen or permanent resident may leave Canada for more than six months but that does not make them "non-residents" but rather, just "non-residents for tax purposes". Assuming you are a Canadian citizen/permanent resident?

Bottom line: you've hit a 'grey area' and I don't know the definitive answer, so I'd recommending contacting FCAC.

Cheers,
Doug

September 9, 2012
2:43 pm
Yatti420
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Have you been wiring money into Iran? TD is reviewing all those accounts it looks like..

September 10, 2012
10:15 pm
The Scrooj
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It's a done deal. My bank can't hold the accounts. It's their bank policy. I'm living outside of Canada for longer than 6 months. I'm a Can citizen, but a non-res for tax purposes. No biggie. I'll just move my dough to the competition. In a hole in my backyard. Don't come looking though. I've got big, scary dogs. Scarier than pit bulls.

And, no, I'm not wiring cash into Iran . . . or any other area that might be soon liberated with 'democracy'.

October 21, 2012
3:36 pm
Yatti
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I know you can hold TFSA and most likely RRSP when you live overseas.. It's just adding to them etc that is the issue.. http://www.cra-arc.gc.ca/tx/nn.....s-eng.html

October 21, 2012
3:43 pm
Doug
British Columbia, Canada
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Umm...my understanding is that when you're deemed a non-resident for Canadian tax purposes, any RRSPs can still be held but their contents are no longer tax sheltered and trigger as if the funds were withdrawn all at once and therefore taxable as income.

Cheers,
Doug

January 10, 2020
3:13 pm
bird
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December 18, 2019
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Banks do not have to do this. I was notified by my (big) bank only when my account was inactive for 2 years and I had a chance to extend its life for another 2 years several times by any transaction never setting foot on CA soil. Even though I'm not back yet, I am actively using this account now and no one ever asked me if I'm a resident for tax purposes or not (I am) even when it was inactive.

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