In summary, Canadian tax jurisprudence appears to have accepted a principle that the CRA`s allegedly significant residential relationships are much less important in determining whether a foreign national has become a Canadian tax resident. If any of the above residential ties are unknown and you have a working holiday visa, you must file a tax return as a non-resident. Yoon also demonstrates that, despite the CRA`s opinion to the contrary, the acquisition of land immigrant status does not appear to constitute a significant retention of housing. Taxpayer Yoon entered Canada and received not only land immigrant status, but also Canadian citizenship. However, the Tax Court of Canada found that the taxpayer was not resident in Canada. The Federal Court of Appeal upheld the Tax Court`s decision, noting that “residency is not simply a matter of a person`s status under immigration law.” However, the Tax Court of Canada found that the taxpayer was not resident in Canada. In its reasoning, the Court noted that the taxpayer is not in Canada “often enough or long enough to establish personal connections with the various communities [in Canada], whether commercial, educational, cultural, recreational or social.” Canadian residents come in two forms: de facto residents and presumed residents. In addition, you may also be considered a non-Canadian resident if a Canadian tax treaty assumes that you are a Canadian tax resident. Not all relationships of responsibility carry the same weight.

As noted in our introduction, the courts and the Canada Revenue Agency consider certain housing relationships to be more important. These important housing relationships are discussed below. The above information is of a general nature. For more information about your housing conditions, see Income Tax Folio S5-F1-C1, Determining a Person`s Residency Status. Residency status for Canadian tax purposes is distinct from citizenship and distinct from immigration residency status. Residency status depends on a number of different factors, including how much time you spend in Canada and whether there are enough housing connections that connect you to Canada, which can be simple or complex depending on your living situation in Canada. It will also be affected by a tax treaty between the countries concerned. If there are reasons to question your residency status, it is important to speak with a Canadian tax lawyer to assess your Canadian tax residency and, therefore, your tax obligations. If you have established a relationship in a country with which Canada has a tax treaty and you are considered a resident of that country, but you are otherwise a beneficial resident of Canada, which means that you have significant residential relationships with Canada, you may be considered a non-resident of Canada for tax purposes. If a non-resident owns certain taxable Canadian real property, such as .

B real estate, certain procedures must be followed, including the payment of a tax of 25% of the profit on the property. If this tax is not paid, the buyer of the property is liable for the tax and can therefore withhold 25% (in some cases 50%) of the sale price of the property. For more information, see Selling Certain Types of Property in Canada Revenue Agency (CRA) Guide T4058 and Income Tax (link at the bottom of the page). In yoon v The Queen (2005 TCC 366), a korean taxpayer moved to Canada in 1975, where she later met and married her spouse, had a child and became a citizen. In 2001, she returned to Korea to work. This year, she spent 135 days in Canada and 224 days in Korea. Her husband remained in Canada. The court applied the Shin decision and found that the taxpayer was not a resident of Canada in the 2001 taxation year. The 2020 Income Tax Package is a set of forms published by the CRA that are required to prepare a person`s T1 tax returns for the 2020 taxation year.

The package includes the federal and provincial tax forms needed to file your T1 tax returns, depending on the province in which you live. If your situation changes, you may no longer be a real resident of Canada for income tax purposes. This could happen, for example, if you: In Song v The Queen (2009 FCA 278), the court ruled that a Japanese taxpayer did not have a Canadian residence even though her husband lived in Canada. Although the taxpayer hoped to be able to live in Canada with her husband at some point, her regular daily routine revolved around her work in Japan. .