Yup. It's true. Revenue Canada (or rather CCRA now) will try to ding you for every cent you make if you have any dependants whatsoever living in Canada, and rightfully so if you expect your wife and kids to collect the Canadian social benefits (medicare, free education, UI, pension etc.)
Basically, you have to show that you have severed all ties but need not sell property as long as you can show it's being rented at an arm's length. But beware, once you are declared a non-residence (should you go ahead and divorce your wife which is a rather drastic measure just for the sake of money) any holdings you try to withdraw from Canada will be automatically taxed at the non-resident rate which was approx. 25% a couple of yrs ago but heard it has gone up to 30+%.
There's a point system to qualify for non-residency. They will add up every qualifier such as selling property, cancelling bank accts, credit cards, etc.
On the other hand, I hear of lots of HK Satellite families whose wife and kids live in Vancouver and the husband goes off to HK to work but does not declare non-residency. They set up a business in Canada to show minimal income which he declares and then he makes all that cash under the table in HK. But I hear from my brother the taxman that they are cracking down on this too. Some new ruling is coming into effect about how many days you need to spend in Canada.
Bottomline: you can't have your cake and eat it too! Sorry but is being apart from your sole reasons for living really worth that little to you and your family?
