Who is Subject to

Question 1

Section and applies to whom?

Answer 1

Canadian residents taxed on global income - Section 2(1)
Non-residents are taxed on Canadian source income (employment, carry on business, disposal of taxable canadian property, income from property) - S 2(3)

Question 2

Determining Residency case law

Answer 2

Thomson - residence in the course of the customary mode of life of the person, deep rooted and settled.
Lee - past/present habits of life. List of factors that contribute to establishing residency.

Question 3

Deemed residency (section & factors/case law)

Answer 3

Section 250(1) - 183 days or more stayed somewhere temporarily in Canada
R&L Foods - worked daily with travel.

Question 4

Part-time Resident (Section & Case Law)

Answer 4

Resident for some of the year and non-resident other time.
Schujahn - Job in US, wife stayed to sell house. Look at lee factors.

NOTE: Cannot be a resident and non-resident at the SAME TIME.

Question 5

Ordinarily resident (section, case law, factors)

Answer 5

section 250(3)
Reeder - ordinary resident means where in the settled routine of life where person customarily, ordinarily lives. Ties to jurisdiction, elsewhere and the permanence.

Question 6

Carrying on Business (Case Law & Section & key takeaway)

Answer 6

Definition of business - section 248
Grainger - soliciting is included in “carrying on business” Consider place of solicitation, manufacture, delivery, payment and provision of support services.
GLS Leasco - Determine b/w business and property income (affects rates - 212 - 218). Intention to carry on business, bank account, agent, arms length.
Sudden Valley - Merely advertising/invitation to treat is not enough.
Tara Exploration - S 253(c) may catch individual actions. Single transaction can be an adventure. More than one can constitute carrying on business.
Key Takeaway/factors - locations of profits, contract formation, more than one transaction, treaties, location of equipment, agents, employees, bank accounts, sales

Question 7

Property vs Business rates for non residents

Answer 7

Property tax has a flat rate applicable (25%)
Taxed under 2(3) pulls in rates and deductions as if normally carrying on business.

Question 8

Section 116

Answer 8

Rare section where liability is imposed on someone other than og TP. Purchase property from non-resident, you are liable to pay their taxes if they dont.

Question 9

Tax Treaties

Answer 9

Alleviate burden of tax liability in multiple places, avoid double taxation, transitioned to making sure people are taxed at least once.

Question 10

Exemptions (section & who)

Answer 10

Section 149
Non-profit orgs.
Charities
Municipal authorities

Question 11

Indian Act (Section, case law, meaning)

Answer 11

Section 87 of the Indian Act
Property exempt from taxation if interest of an Indian or band in reserve lands or surrendered lands and (b) the personal property of an Indian or band situation on a reserve.
Williams - connecting factors test. Factors that connect to ‘on reserve’ piece
Bastien - where do you live? Business/location of work? Where do you buy investments? Where is the bank?