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.

00:00 – Why 500,000 People Left Canada
01:07 – Post-COVID Remote Work Changed Everything
02:42 – High Taxes & Housing Crisis in Canada
04:05 – Brain Drain: Talent & Wealth Leaving Canada
07:00 – When Do You Stop Paying Canadian Taxes?
08:36 – What Is Canada’s Departure Tax?
09:59 – How Departure Tax Actually Works
11:39 – Which Assets Are Taxed When You Leave Canada
13:18 – Assets Exempt From Departure Tax
14:37 – Why Departure Tax Stops People From Leaving
17:02 – The Shock of Seeing the Tax Bill
18:09 – Why Early Tax Planning Is Critical
20:32 – Real Case Study: Crypto & Perfect Exit Timing
24:27 – Market Volatility & Exit Strategy Lessons
26:11 – What Makes You a Canadian Tax Resident?
27:33 – The 183-Day Rule Explained
28:46 – Family, Economic & Lifestyle Ties
31:27 – Costly Mistake: Filing as a Resident for 20 Years
33:04 – Why “Resident” Isn’t Clearly Defined
34:25 – CRA Residency Form (NR73) Explained
40:03 – Intentions Change: Temporary vs Permanent Moves
42:32 – Accidentally Becoming a Non-Resident
44:52 – Retroactive Departure Tax & Penalties
47:54 – Business Owners: Exit Planning Strategies
49:07 – The Biggest Trap: Tax Without Cash

*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 to 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 Canada

💡 Thinking 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:* sunny@cedargroup.ca

🌐 *Website:* https://www.cedargroup.ca/

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👇 Comment below with your questions — we may answer them in a future episode.