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 (the “ITA”). 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 .