Assignment%20one%20solutions - Solution to Assignment...

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Solution to Assignment Problem Twenty - 1 Solution According To Textbook Mr. Leduc would be considered a part year resident and would only be assessed for Canadian income taxes on worldwide income during the portion of the year prior to his ceasing to be a resident of Canada. IT-221R3 indicates that, in general, the CRA will view an individual as becoming a non-resident on the latest of three dates: The date the individual leaves Canada. The date the individual’s spouse or common-law partner and dependants leave Canada. The date the individual becomes a resident of another country. While Mr. Leduc departed from Canada on February 12th, he will be considered a Canadian resident until his family’s departure on June 20th. The fact that his family remained in Canada would lead to this conclusion. While not essential to this conclusion, the fact that he did not sell his Canadian residence until that date would provide additional support. His Canadian salary from January 1 to February 11 would be subject to Canadian taxes. In addition, his U.S. salary for the period February 12th through June 20th will be subject, first to U.S. taxes, and then subsequently to Canadian taxes. In calculating his Canadian taxes payable, he will receive a credit for the U.S. taxes which he has paid on this income. However, because Canadian tax rates at a given income level are usually higher than those which prevail in the U.S., it is likely that he will be required to pay some Canadian income taxes in addition to the U.S. taxes. Note To Instructors
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This note was uploaded on 10/11/2010 for the course COMM 355 taught by Professor Trancheung during the Winter '10 term at UBC.

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Assignment%20one%20solutions - Solution to Assignment...

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