Residency (Taxation) Flashcards

1
Q

Residency (Taxation)

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