Residency Determinations

Residency is fundamental to the tax obligations of a person in Canada.  Determination of residency is not a particularly easy exercise.  There is no definition of residency in the Income Tax Act (theITA”).  It is a mixed questions of fact and law and must be determined for each individual situation taking into consideration all the circumstances and intentions.

The determination involves applying:

  • Court developed criteria;
  • Legislation – certain deeming ITA sections; and
  • Treaty – the tie-breaker rules.

You can find additional information on our blog.

 Residency determines your Canadian tax obligations

Tax residency will mean a difference between being liable for income tax on your worldwide income and or on income you earn only in Canada – see Tax and Tax Planning.  Tax liabilities vary for residents and non-residents of Canada when buying or selling real estate

Tax residency is different from the immigration status of an individual

An individual can be a resident of Canada for income tax purposes even if they are not a Canadian citizen or a permanent resident.  And a person who is a Canadian citizen may not be a Canadian resident for income tax purposes. 

We can assist with determination of your residency and advise you on the steps to take to establish that you are either a resident or a non-resident for tax purposes in Canada as your particular situation may require.

Contact Granville Law Group at 604-669-6580 or arrange a free 30-minute consultation using our contact form