Leaving Canada? Here’s What the CRA Wants You to Know

According to Statistics Canada, approximately 500,000 people left Canada in 2024 — a staggering number that raises serious questions about affordability, taxation, and long-term planning.In this episode of Advisors Table, we unpack why more Canadians — especially professionals and business owners — are considering leaving Canada, and the often-overlooked tax consequences that come with that decision.Leaving Canada isn’t as simple as booking a flight. From departure tax to residency rules, poor planning can trigger unexpected six- or seven-figure tax bills.In this episode, we cover:• What departure tax is and why it catches people off guard• How Canada taxes unrealized gains when you become a non-resident• Which assets are taxable — and which are excluded• Liquidity challenges when wealth is tied up in private corporations• Residency rules, gray areas, and common misconceptions• Real client stories involving crypto volatility and exit timing• The NR73 form and how CRA evaluates residency• Planning opportunities — and costly mistakes — when leaving CanadaThinking about leaving Canada? Timing, valuation, and residency matter more than most people realize.Looking for trusted tax advice?Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group.Email: [email protected]: cedargroup.caSubscribe for weekly episodes.Comment below with your questions — we may answer them in a future episode.Timestamps:00:00 – Why 500,000 People Left Canada01:07 – Post-COVID Remote Work Changed Everything02:42 – High Taxes & Housing Crisis in Canada04:05 – Brain Drain: Talent & Wealth Leaving Canada07:00 – When Do You Stop Paying Canadian Taxes?08:36 – What Is Canada’s Departure Tax?09:59 – How Departure Tax Actually Works11:39 – Which Assets Are Taxed When You Leave Canada13:18 – Assets Exempt From Departure Tax14:37 – Why Departure Tax Stops People From Leaving17:02 – The Shock of Seeing the Tax Bill18:09 – Why Early Tax Planning Is Critical20:32 – Real Case Study: Crypto & Perfect Exit Timing24:27 – Market Volatility & Exit Strategy Lessons26:11 – What Makes You a Canadian Tax Resident?27:33 – The 183-Day Rule Explained28:46 – Family, Economic & Lifestyle Ties31:27 – Costly Mistake: Filing as a Resident for 20 Years33:04 – Why “Resident” Isn’t Clearly Defined34:25 – CRA Residency Form (NR73) Explained40:03 – Intentions Change: Temporary vs. Permanent Moves42:32 – Accidentally Becoming a Non-Resident44:52 – Retroactive Departure Tax & Penalties47:54 – Business Owners: Exit Planning Strategies49:07 – The Biggest Trap: Tax Without Cash