Question

#2) (3 Marks) Given each of the following unique scenarios, comment on whether or not the individual is a resident for taxation purposes and what Canadian taxes they are subject to. Ensure you include any time periods in your answer: a) Tom is a citizen of the US, but loves to travel and stay in Canada. His only source of income is part time work in the US. During the taxation year, he was in Canada for 175 days. b) Jimbo was born and raised in Saskatchewan. He has spent his entire life in Canada. He is employed at a local business in Saskatoon, SK. During the tax year, he also had investment income (dividends and interest income) from stocks and bonds of US Companies c) Samantha was born and raised in the US. She was offered a position at a Canadian Company in Toronto, ON. She accepted the position and moved all he personal belongings to Canada on Sept 1, 2017. Prior to her move, she worked part time at a business in the US.

Answer 1

a) As tom has not stayed in canada for 183 days so he is not liable to taxed in canada as resident defination says that if person has stayed for 183 days than only becomes resident.

b) As jimbo has stayed in canada so he is liable to tax on income earned from stocks and bonds of us companies as he is resident of canada.

c)As from sept 1,2017 to 31st march 2018 total days are 212 days so he becomes resident so liable to tax for the same