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BrianInMexico

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Everything posted by BrianInMexico

  1. You are correct. I inadvertently used the term OAS because GIS is an income subsidy program administered within OAS by Service Canada and I should have stuck with the term GIS to avoid this confusion. The question was about GIS and avoiding the record collection by immigration.. I repeat, Canadians legally collect OAS & CPP wherever they live and whatever their residency status. GIS is dependent on residency in Canada of 6 months per year and those trying to skirt these GIS rules are taking a chance of being caught.
  2. Flying directly from Canada to Mexico and vice-versa is not a problem. The context was that people were doing this rather than transiting thru the US and leaving a US Immigration record that is shared with Canada, allowing Service Canada to compare arrival dates. At this time, I do not believe that Canada and Mexico are sharing immigration records and this MAY allow people to collect OAS when not eligible without yet getting caught. None of these countries has an immigration record of when you exit, only when you arrive.
  3. There is a fair bit of questions, misinformation, and speculation in all of the above thread, but let's keep it to the facts. First fact, for Cdn born citizens OAS is based on the number of years, up to 40, that you were resident in Canada after the age of 18. So anyone who is a resident until age 58 gets full OAS, no matter where you live. Those that have less than 40 years get a proration of 1/40th per resident year. Immigrants have different rules and are not not pertinent to this discussion. Second fact, GIS, Guaranteed Income Supplement, is based on family income and is a non-taxable payment designed to supplement low income seniors who are collecting OAS. To be eligible for this payment, you MUST be resident physically in Canada for 6 months a year. This is somewhat similar to the Provincial medical plans that require you to be physically present in the province for 5 to 6 months, depending on the province. This eliminates you if you live in Mexico, or anywhere outside of Canada, for 6months or more in a year. This info is clearly spelled out in the govt info regarding OAS and the 6 months each year is NOT flexible and Canadian non-residents do not fit the definition of 6 months residency, though I am not aware of that being tested in court. As to administration, Service Canada in the last several years has become quite aggressive in catching GIS cheaters since the agreement was made with the US to cross-share border crossing info on Canadian and US citizens. When you enter Canada, there is an immigration record. When you enter the US, there is an immigration record. When they scrub their files and find a GIS recipient who entered the US on one date and then their first return entry to Canada was more than 6 months later, they may begin an enquiry. They then send a letter to the individual at the OAS address of record requesting them to sign an affidavit (read jail time if you lie) and your passport to back it up. If you are found to be a cheat, you have to repay all the funds for the non-eligible years. I know of people that were caught. Some people attempt to fly into the Canada from Mexico or Europe without a transit stop in the US, but not sure if this will continue to work. As a side note, I believe that at least one province is doing the same to catch Provincial Medical cheaters who used the medical system but didn't spend sufficient time in the province to be eligible, but this is not provable yet. This is not a Canada Customs issue but is solely a Service Canada program.
  4. Darryl: You have a lot of bad info here. Equivalent to people saying that they drove 200KM an hour on the highway and didn't get a ticket, so that must be the new speed limit! There are indeed advantages and disadvantages to both Cdn residency and Non-residency and the list for both is quite detailed. CRA only provides general info and they really don't have full knowledge if you call the "Help" desk. The only way to be sure is to run both scenarios and decide based on facts. Also, do not confuse residency/non-residency issues with Provincial Medical. The Provincial rules apply (eg 153 days in the province) even if you remain a "resident" for tax purposes. There are also substantial penalties if you become a non-resident and do not correctly complete the "Emigration" return in the year that you officially depart. If you want a comparison of the pros & cons of each, and your 2020 taxes completed correctly in either case, contact Brian @ Mex cell 333-451-8139.
  5. Currency relationships are not always simple but if you use the $US as a base and compare to it, you can often make some sense of the current currency situation. One of the most important overriding factors is fear, or lack of it. If traders are nervous, even if the USA is the cause, there is a flight to the $US. This is because the US Treasury bill is probably the most secure and readily available instrument worldwide. You must buy $US to buy US Treasuries and, if there are more buyers than sellers, the value (in this example the $US) goes up. The opposite is generally true. When everyone is complacent, the opposite generally happens, and the $US goes down because people are willing to take additional risk in other investments, causing US Treasury bills to be less attractive. The $US has been in a gradual decline for a number of months on the expectation and belief that a vaccine would soon be available and major economies would be back to work by mid 2021. The world right now is feeling hopefull and believe that they see the light at the end of the tunnel (no train jokes please), so the $US deteriorates against most currencies (more sellers than buyers). This is a GROSS oversimplification of currency movement, but helps to understand the base case for $US currency fluctuation. All major govts have had to overspend because of the pandemic, so the US's big deficit is not really causing any fear right now (apples to apples between countries). Canada and Mexico have very similar economic drivers (oil. mining, large trade with US and Canada is somewhat more efficient than Mexico (less waste and graft0, resulting in the $Cdn on average tracking slightly better than the $MXN peso over time, but both can be occasionally skewed relative to the $US because of the high % of their economies based on oil and mining. In 2001, the $MXN peso was 9.33 to the $US and 6.03 to the $Cdn, Compare that to today's rates of approx 20 and 15 to understand the long term depreciation of the peso against both and the relative lockstep of the $Cdn with the $US. Bear in mind that there have been times during this period where particular events have caused anomalies (the super-peso and $Cdn above par when oil went over $100/barrel) but the 20 year trend is likely to continue over time.
  6. I have received notes from a number of people that got my name from friends about the problem that they are having now that some/all of the tax preparers for Canadian Income Tax have headed back north as requested by the govt. I am not soliciting new business BUT I am indeed still doing both Canadian Tax Returns for Lakeside residents, both Canadian Residents and Canadian Non-Residents. I also complete US Tax Returns, but I understand that there is at least one other preparer still at Lakeside, so the need may be less urgent. In any event, if you need your returns completed, contact Brian at bdstockman@efficientwealth.com or Mex cell 333-451-8139. Because of the risks to all of us, I am not meeting face-to-face with any clients and everything is accomplished online, securely.
  7. Just a caution on the liability rider in the US on your Mexican policy that most people do not know about. Your liability rider may be for only $100K and may actually specify the states where it is valid, so read it! This is legally sufficient in southern states like TX, NM or AZ BUT you may find that the minimum required by law is higher in other states. When I drove up north there were many states, plus Canada, that required minimum liability of more than $100K, so I had to buy a rider for $300K. You can check state by state online that you are visiting to verify minimums in the states where you will be visiting.
  8. Check out the Chapala.com classifieds for high quality furniture, artwork and other treasures for less than replacement value. Have been renting unfurnished and now moving to furnished, so everything for sale at less than replacement value.
  9. I think some people are missing the point of my reply, The issue is whether you are a Canadian "resident" or a "non-resident". A Non-Resident can indeed drive their Mexican plated car into Canada with absolutely NO problem. As long as you say that your permanent home is in Mexico, you will get through. They can ask strange questions (eg. proof) but normally just take you at your word. However, a Canadian resident cannot legally bring a Mexican plated car into Canada without importing it, and this is no longer easy. Rules for US plated cars (or any car that was ever US plated, even if converted to Mexican plate) are completely different and their is no problem taking them into Canada (even rentals) no matter what your residency status. Also, I was told by the Transport Canada official (they ARE the officials in this regard) that the Mexican plated vehicle (2014 Honda) would require major mods to pass the import test and once modified would not likely pass anyways, thereby making importing it a no-go.
  10. I have recently been discussing with Transport Canada and Border staff the issue of importing a Mexican plated vehicle into Canada. First, if you are a Resident of Canada, you CANNOT bring your car into Canada on a temporary basis but must import it through the proper process. Second, no car purchased in Mexico will meet the necessary requirements for importation unless you specifically had the dealer provide a vehicle that is compliant with Canadian specifications, and this request is very unusual, to say the least. So, the answer is simple: If you are a Canadian Resident you cannot legally take your Mexican car across the border into Canada!! Non-residents, however have absolutely no difficulty to bring the vehicle into Canada temporarily, with no paperwork required. Having said that, when asked at entry "where do you live", people do lie/misdirect at customs locations when entering Canada and say that they live in Mexico (implying non-resident) and may even flash their Mexican Perm Res card as "proof". You, as a "non-resident", are then allowed to bring their vehicles into Canada and I am not sure that there is any way for the Customs official to actually check the status. I am very much not suggesting that you lie, but you need to understand the rules. If they follow up with the actual "are you a non-resident" question, you may be in a real pickle for your previous answer. If you say you are a Canadian Resident, no matter how long you have been out of the country, your vehicle is denied entry. Not sure if you are always asked about "where you live", but they are not used to seeing any foreign cars other than US, so expect them to ask.
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