2 complex questions:
Do I have to file a tax return in Canada if I am working here legally with an ARC? If so, what is the best way to do this so that I dont have to pay taxes here (which I have already) and there???
If I send money (to my account) in Canada, is this dangerous? Will a red flag go up somewhere at the IRS office? Will they track it down and force me to pay income taxes? Can I transfer small amounts (say under $10,000) without the gov catching on?
Unfortunately you do… don’t Canadian taxes totally suck? That’s why I left and so did my sisters… 37% off the top on a 50K salary gag, not to mention GST and PST, property taxes *frick! And we want the freakin’ Olympics sheesh, pay off the damn national debt!!!
Ok no more ranting hehe.
For your next Cdn tax return you’ll have to check off the Non-Residance Status in your tax return(in order to avoid future income tax payments). You’ll still have to pay taxes on any earnings in and out of Canada for 2003 though. There’s a field on your tax return for “Earnings outside of Canada”. Plus your still gonna have to cut a cheque for CPP/EI every year(i forgot the % of earnings, call Revenue Canada). Oh yah you should sever all financial ties, like close bank accounts. cancel credit cards so that you don’t earn interest and have the feds audit you in the future.
Isn’t Canada the best place to live?!? Of course you cannot pay and try to get away with it, many people do, but you may get audited in the future but it’ll be difficult for them to prove… IF they do successfully audit you in the future, you’ll just have to backpay any taxes you owe plus some interest, so it’s no biggie… many people do it.
For the second part, i don’t think the Canadian gov’t tracks their money as anal as the American’s. I made a money transfer between my HSBC accounts but damn, they charge out of the wazooo for s/c on both sides of the Pacific. Is that 10K Cdn or 10K NT? I think it’ll be ok to transfer 10K Cdn but dang, what if there was a banking error :?
Hold on there. Don’t get all excited yet. When you file your tax return you will be asked to file a “Statement of World Income”. Basically you can fill in the blank. Since Taiwan is not a “state” it cannot and does not have tax treaties signed with other countries. There is no way for the Canadian authorities to find out or prove what you have made. There is no interstate cooperation between Canada and Taiwan.
Secondly, unless you’re sending a huge amount home there will be no red flags, although if you do get audited you’ll have to be able to explain where the money came from.
Also, the IRS is in the US, and not in Canada. We have Revenue Canada. 
Yah, “we have Revenue Canada”… I can’t say that with enough sarcasm.
Only reasons to be “making a living” in Canada are: if you have children, need social assistance, or you’re old(pensioner)… other than that, take the Right Honourable Prime Minister Jean Cretian’s advice and “get out of Canada if you don’t like it 'ear!”… “brain-drain, there is no brain-drain, what iza brain-drain?”
On the serious note: Like mfaass said, if your doing like teaching or something, don’t give Rev Can a single penny on that, but if you’re working for an international company that keeps stringent book-keeping records and has like offices in Canada i’d be a little more weary.