Residency Flashcards
1
Q
Residency
A
- CRA considers both significant and secondary residential ties in assessing whether a taxpayer is a resident of Canada
- Significant residential ties – factors that make a strong case, in and of themselves, that residential ties exist:
o a home in Canada
o a spouse or common-law partner in Canada
o dependents in Canada - Secondary residential ties – factors that may contribute to whether residential ties exist (including, but not limited to):
o personal property in Canada (car, furniture, etc.)
o social ties in Canada (memberships in Canadian recreational groups, etc.)
o economic ties in Canada (Canadian bank account or credit cards, etc.)
o Canadian driver’s licence, Canadian passport, or Canadian health insurance - If a taxpayer is determined to be a resident of Canada, they are taxed on all of their worldwide income; non-residents of Canada are taxed only on income tied to Canadian sources