Residency (Taxation)

Question 1

Residency (Taxation)

Answer 1

• 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
  Reference: ITA 2, 3, Income Tax Folio S5-F1-C1