My bank wants to close my account because I'm a non-resident now | General financial discussion | Discussion forum

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

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purposes, any RRSPs can still be held but their contents are no longer tax sheltered and trigger as if the funds were withdrawn all at once and therefore taxable as income.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