Taking care of legal matters
Rule #1 of the law: Ignorance of the law is no defense.
Rule #2 of the law: Educating yourself in the law is an offense.
This is only halfway sarcastic. In many ways, it's true.
Getting information out of a civil servant is like herding cats. These
people are not civil, and they are more servile than servant. That
certainly was my experience in dealing with these bungling buffoons.
Unless you know by name and number what it is you are asking for,
they won't help you.
That puts the onus on you to do the research and find out exactly what
it is you need because nobody who is paid to tell you will tell you.
I learned more about what forms I needed by talking to people waiting
in line at government offices than I ever did from the employees.
In preparing to leave Canada, I had to check and double check the
laws and rules about living and working overseas. Everytime I said
"taxes in a foreign country", the idiots at the tax offices
said "talk to Foreign Affairs". Every time I said
"taxes in a foreign country" to foreign affairs, those idiots
said "talk to CCRA". Nobody knew what they were doing
and there was no coordination between them.
I had to go into the public access rooms and dig through law books
before I found what I needed. In all cases, once I showed the dimwits
the laws that they and their departments are supposed to follow and
services they are supposed to provide, they were surprised that it
was their job and were more surprised - nee, offended - that
I expected them to do their job. Any information I gleaned out of
dealing with the government was through my own footwork and efforts,
not their ineptness and mental mediocrity. Small wonder these people
work for the government.
The most important document you will need is the
Canadian Residents Abroad, T4131 (E).
A PDF of the 2003 version can be downloaded from this site, but I would
advise going to the
Canadian Revenue Agency (CRA)
website and downloading a more recent version if one exists.
The T4131 details the rules for Canadians living and working in
other countries. If you follow the rules, you will only be subject to
the taxes in the country you live in. If you do not follow them, you
will be subject to Canadian tax laws, even while living overseas.
It doesn't matter if this is a stupid idea and unfair, we're talking
about the Canadian government here. CRA (at that time, Revenue Canada)
once seized $12 from a child's bank account because the boy's father didn't
have the money to pay income tax. (The boy had a newspaper route.) Decency
and common sense don't mean anything to them.
The only time this would not be an issue is in a country which has
higher rates of personal income tax such as Sweden. But Canada has
one of the highest rates in the world, meaning most are lower, and if
you violate CCRA's rules, you will be subject to extra income tax upon
your return.
Many countries have "tax agreements" with each other. These are sets
of laws agreed on by countries to prevent arguments amongst themselves
over tax authority and who gets the money. At first you might think this
is a way to get extra taxes out of you, but it actually protects you.
If Canada and another country have no tax agreement, you pay income tax
in both countries, meaning you pay taxes twice on money already earned.
Tax agreements protect you by preventing such "doubling up". Most first
world and industrialized nations have tax agreements with each other. Only
countries with Looney-Tunes governments like North Korea, some
African dictatorships and a few others do not have tax agreements with Canada.
(Why anyone would want to work in those sorts of countries, I have no idea.)
I am not a lawyer, but below is the basic gist of the law. If you live
outside of Canada you must pay Canadian income tax rates if you violate
any - even one - of these rules. Don't assume I am right!
Talk to a lawyer or professional auditor and check for yourself.
- You do not stay outside of Canada for a minimum length of time
For English teachers on contract (as of 2002): one year.
For all other workers and citizens: two years.
Returning on holiday for short periods is permitted (usually less than
two months).
No work of any kind is permitted on holiday in Canada.
- You own any property in Canada
Own houses, apartments, businesses, etc. and you are considered a resident.
- You own any vehicles in Canada
Own cars, motorcycles, etc. and you are considered a resident.
- You have any investments in Canada
Own stocks, savings bonds, t-bills, etc. and you are considered a resident.
Having a savings account at a bank and you are considered a resident.
- Your personal possessions are kept in storage in Canada
Store possessions at commercial storage facility and you are considered a resident.
Store them with your family and they could be subject to penalties if you are caught.
- You use any benefit of Canadian citizenship aside from your passport
Pay the more expensive "international rate" for travel insurance or you violate the rules.
Pay the more expensive "international rate" for medical insurance or you violate the rules.
Give up your Provincial driver's license or you violate the rules (International driver's
licenses are derived from provincial licenses, so you lose that too.)
Essentially, you have to do what I did: get rid of everything and
effectively give up citizenship or the government will consider you
a resident while working overseas.
If your first thought is, "Who cares? What can they do to me?" I can,
as a business graduate and a trained H&R Block tax preparer, tell you
what they can do:
- Force you to repay back taxes
| Income tax saved annually:
| In Canada
| In Korea
|
| Annual income in Korea (1,800,000 X 12):
| $24,800
| 21,600,000won, or C$24,800
|
| Basic tax rate and miscellaneous deductions
| 20%
| 5%
|
| Taxes and deductions paid
| $4960
| 1,080,000 won, or C$1240
|
| Taxes saved by working in Korea vs. Canada
| $0
| 3,240,000 won, or C$3720
|
Unless, of course, you don't mind giving Ottawa the C$3720
rather than keeping it for yourself. Is that C$40 international
driver's license really worth that much? It costs approximately
C$700 to obtain a Korean driver's license. By comparison, it is
a bargain if you really insist on driving while overseas.
- Seize your assets and property
Your car? Now it's Ottawa's. Your savings bonds?
Not yours. Your dad's house...?
- Audit your previous tax years
Up to seven years back. Unless you have never filed a tax return
in your life, this could be a real pain in the ass.
- Revoke your passport and force you to return to Canada
What does Ottawa care about your job, your fiance/spouse/partner, you leave now!
- Charge you criminally
People with criminal records are often rejected admission
to other countries and may not be able to obtain a passport.
Forget about travelling in the future, even to the USA.
Now is it worth it to follow their rules?
Call the tax office in your area, in Ottawa 1-800-267-1267 on weekdays
8:15-5:00 EST. From outside of Canada you can call collect (613) 952-3741
and they will accept it.
Visit the CRA website
and download PDFs or request forms. Also visit my
links page for a list of forms I suggest
you get before you go. CRA is often uncooperative about sending
tax forms overseas, and the Canadian embassy keeps too few copies
of tax return forms for the number of Canadians here. Ask your
family or a friend to mail them to you if you can't get them
before you leave.
(Remember to have your tax forms, be they T4s from employers
or government forms sent to the mailbox I told you about in
Part 3: Lost In The Limitless Rise...unless,
of coures, you want your Korean employer knowing your private
information.)
Finally, don't forget to submit a tax return to Ottawa for the
year that you leave Canada. Even if you leave on January 1 and
filed for the previous year, file for the current year. Any taxes
due will be prorated for the part of the year you were in Canada.
Don't give the bastards a chance to screw you over.
Researching the destination city and country
We English speakers are the most chauvinistic and imperialist assholes
on the face of the Earth. When people come to English-speaking countries,
we expect them to speak English. When we go to their country, we expect
them to speak English. And don't think I'm letting the French off lightly!
Ask people in Florida about the Quebec "snowbirds" (the tourists who go
south in the winter) who demand service in French, in Florida!
(Multilingualism is not a burden but a benefit. The more languages
you can speak, the more people you can talk to. A study published
in June 2004 showed that people who speak at least two languages are
less prone to dementia and "brain fade" associated with old age.)
What sucks for me is that I find learning rules and organization to be
easy (in language, that means the grammar). But when I try to learn
vocabulary, I am wasting my time. I studied French and Japanese for
years and can't hold a conversation. Words are to my brain as water
is to a seive.
For me, trying to study Korean was equally a waste of time. But I did
find that learning some basics was enough to get along in Korea. I
learned numbers (for counting and money), directions, and basic niceties
and have gotten by without anything more.
Most importantly, I learned to read the script, Hangul.
The language is phonetic (it sounds and is spelt the same) unlike English
and French. Korean grammar is consistent and easy to learn with few
irregular verbs, also unlike English and French.
Expecting someone to learn and be fluent in a languange within a year
is impossible, let alone a few months. But even if you are only in Korea
(or another country) for a year, it will help you to get along by learning
at least some of the local tongue. Not just because it is easier for you
to communicate with people, but because most will appreciate the effort
and be friendlier to you.
Here are a few links to software and other resources to learn the
basics of Korean:
-
Introduction To Korean - A tutorial for Hangul writing
As the text says, it shows you how to write in Korean. But there's
an easy way to remember Korean characters: a tic-tac-toe grid.
(Trust me, you'll understand....)
- LangIntro to Korea
This is a very well made website introducing Korean to the beginner.
It contains graphic images of the script as well as sounds for
listening practice. It can be used both online and downloaded as
ZIP files to use at home. If the site disappears, let me know.
I have copies of the files and will post them on this site.
-
Online Korean Course - Learn Korean through self-study
-
The Alternative Dictionary: Korean
The Alternative Dictionary is not a standard dictionary. It is a
website cataloguing profanity and insults in many languages. I am
not providing the link so you can use the words on others, but
rather so you are aware if a Korean is hurling them at you. Just
like in Canada, verbal belligerence and berating is often a precursor
to being physically assaulted, and public drunkenness is common in Korea.
-
Survival Korean
A bare-bones introduction to Korean.
- K's quick and dirty Korean dictionary
I recently did this specifically for this page. The contents are
pilfered from the TraveLang website and copied verbatim.
If there are any grammatical or etymological errors, they are
theirs, not mine.
I am attempting to converting this into a program for Palm PDA
devices and will post it if/when I do.
As for learning about Korea itself, visit my links
page to find sites about Korea, mostly those in country but also the
Lonely Planet website.
In Closing
Although I tried to be thorough and trepanated through every crevice
of my mind I could get to, there may be things I forgot about or never
experienced because they didn't apply to me. If anyone out there
has any information to submit or suggestion, corrections and
alterations, feel free to send them to me through my
Feedback page.
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