Liability for Tax Flashcards
Primary Residential Ties
Dwelling place in Canada maintained for the taxpayer’s use
spouse or common-law partner of taxpayer
dependents of taxpayer
Secondary Residential Ties
personal property kept in Canada
social ties: club memberships
economic ties: employment, running a Canadian business (active), bank accounts, savings plans
other ties: seasonal dwelling, passport, driver’s license, membership at professional organization
Deemed Resident of Canada - Corporation
Incorporated in Canada after April 26, 1965
Incorporated in Canada before April 27, 1965 and it either carried on business in Canada or was resident under common law at any time after April 26, 1965
Taxation of Non-Residents
was employed in Canada (physically held a job in Canada),
carried on business in Canada at a permanent location in Canada, or
disposed of taxable Canadian property
Sojourners
an individual who travels in and out of Canada in a year and, because of those travels, is in Canada for a total of at least 183 days in the year. Sojourners are taxed in Canada on their worldwide income for the year.
Part-Year Residents
an individual who becomes or ceases to be a resident of Canada at some point in the year. Part-year residents are taxed in Canada on their worldwide income for the period they are resident in Canada.
Deemed Residents - Taxed in Canada for the full calendar year on their Worldwide Income
an individual who sojourns in Canada for a total of 183 days or more in the year (for the purposes of this rule, part days are considered full days)
a member of the Canadian armed forces
an ambassador, minister, high commissioner, officer or servant of Canada or a province, if the individual was resident in Canada prior to his or her appointment
Resident of Canada Under Common-Law Principle
A corporation that was not incorporated in Canada may still be considered a Canadian resident under common-law principle if its central management and control is located in Canada. Central management and control is located where the Board of Directors of the company meets to make decisions on how the corporation is to be run.
