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ASSIGNMENT QUESTIONS RESIDENCY SUGGESTED SOLUTION PROBLEM 1 Aaron is a single Canadian who goes to the U.S. for full-time education purposes. While in the U.S. he receives a four-year Canadian scholarship, a scholarship from his U.S. university, and compensation as a teaching assistant during the four years. He becomes engaged (but not married) to an American while in the U.S. As there is no special residency rule related to students, it can be assumed that the normal rules which apply to all individuals are applicable when determining the residency status of a student coming to or leaving Canada for education purposes. The essential question is: Has he severed his residency ties in Canada prior to his departure to the U.S.? The facts and issues to resolve include the following. (a) The purpose of his departure was to pursue graduate education in the U.S. (b) Can a return to Canada be foreseen? Whereas an undergraduate student may be presumed to return to Canada, especially during the non-semester months, this may not be the case with a graduate student. Many graduate students, especially PhD students, pursue their studies on a 12-month basis. (c) Are return visits to Canada regular and/or lengthy? This question can only be answered on a factual basis, which would vary from one student to another. (d) Does he maintain family and other ties in Canada? Even if we assume his parents are in Canada, Aaron is single and 25. He is in receipt of a Canadian scholarship. Unless there is a stipulation in the terms of the scholarship that he remain a Canadian tax resident, or that he return to Canada following completion of his degree, the scholarship alone probably is not sufficient to indicate that he has significant ties to Canada? (e) Did he maintain his Canadian driver’s license, bank account, and health care while in the U.S.? (f) What is the likelihood that he will return to Canada after his studies? Given the future employment prospects for PhD. students, there is an equal likelihood that he will return to Canada as there is that he will remain abroad following completion of his degree. (g)
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This note was uploaded on 01/07/2012 for the course ACCT 4453 taught by Professor Gorman during the Spring '11 term at Dalhousie.

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