Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EMPLOYEE RELOCATION OUTSIDE CANADA Residential Ties With Canada The residency test embodies the notion that if the taxpayer’s true intention is to become a non-resident, he or she will permanently sever his or her residency ties with Canada. It therefore becomes important for a taxpayer to carefully consider severing these ties in their planning to be considered a non-resident. (a) Retaining a dwelling in Canada that (i) is suitable for the taxpayer’s year- round occupancy, (ii) is leased on a non-arm’s length basis, or (iii), could become available to the taxpayer on short-notice, would generally convince the courts that the taxpayer has not severed his or her residential ties with Canada. (b) If a single person maintains a dwelling in Canada prior to his or her departure, supports a person therein, and continues to maintain the dwelling and support the person therein after departing Canada, the single person will not be considered by the CRA to have severed his or her residency status. (b) If a taxpayer’s spouse or dependents remain in Canada, he or she will almost certainly be deemed a resident, in spite of the taxpayer’s absence, with a possible exception made in the case of legally separated spouses. Residence of Husband and Wife - Normally the CRA considers a taxpayer who has a residence in Canada available for his or her immediate occupancy, and whose spouse has remained in Canada, to be a resident. However, it may, in certain circumstances, be possible to establish that the taxpayer in these circumstances is a non-resident. (See Schujahn v. M.N.R. , [1962] C.T.C. 364) (d) It is assumed the taxpayer will not require personal, social and/or professional affiliations with Canada if he or she has severed residential ties with
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/19/2012 for the course ACCT 4454 taught by Professor Barry during the Spring '12 term at Saint Mary's University Texas.

Page1 / 4


This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online