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Quiz: Residency for tax purposes

9 questions

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1 A caller asks how CRA decides whether they are a resident of Canada for tax purposes. What actually governs the determination? Their residential ties to Canada, weighed as a question of fact Whether they hold Canadian citizenship Their immigration status — permanent resident, work permit, or visitor Whether their employer is a Canadian company

Answer key unconfirmed — rests on 1 unverified claim.

2 Which of these are significant residential ties, as opposed to secondary ones? Select all that apply.

Select all that apply.

Dependants in Canada A Canadian driver's licence A spouse or common-law partner in Canada A Canadian bank account Provincial health insurance coverage A dwelling place in Canada

Answer key unconfirmed — rests on 2 unverified claims.

3 Someone with no residential ties to Canada stays here for 190 days in a calendar year. What follows? They become a part-year resident starting on the day they arrived They are deemed a resident of Canada for the entire year They are deemed a resident only for the 190 days they were here Nothing — without residential ties, days spent in Canada do not affect residency

Answer key unconfirmed — rests on 1 unverified claim.

4 A taxpayer is leaving Canada and wants CRA's opinion on their residency status. Which form do they use? NR74, Determination of Residency Status (Entering Canada) S5-F1-C1, Determining an Individual's Residence Status There is no form; residency status is only ever determined on assessment NR73, Determination of Residency Status (Leaving Canada)

Answer key unconfirmed — rests on 2 unverified claims.

5 An individual is resident in Canada under Canada's domestic rules, and also resident in a treaty country. The treaty's tie-breaker resolves their residency to the other country. What are they, for Canadian tax purposes? A part-year resident, split at the date the treaty was applied A factual resident of Canada, since domestic rules were met first A deemed non-resident of Canada A resident of both countries, filing a full return in each

Answer key unconfirmed — rests on 1 unverified claim.

6 A part-year resident becomes a resident of Canada in September. On what is she taxed for that year? Worldwide income for the part of the year she was a resident Only Canadian-source income, for the entire calendar year Nothing, until her first full calendar year of residency Worldwide income for the entire calendar year

Answer key unconfirmed — rests on 2 unverified claims.

7 What is the practical consequence of the resident / non-resident distinction for what gets taxed? A resident is taxed on worldwide income; a non-resident only on certain Canadian-source income Both are taxed on worldwide income, but a non-resident pays at a flat rate Both are taxed only on Canadian-source income, differing in which credits apply A resident is taxed on Canadian-source income; a non-resident on income from all sources

Answer key unconfirmed — rests on 1 unverified claim.

8 A caller says: "I'm a Canadian citizen and I've been working in Singapore for six years. My family moved with me and we sold the house. But I still have a Canadian bank account and my driver's licence, so I'm still a resident, right?" What is the best first response? Explain that residency turns on the weight of ties as a whole, note that the significant ties appear to have been severed, and point to the folio and NR73 Confirm they are still a resident, since they retain Canadian ties Tell them citizenship settles it and they remain a resident Confirm they are a non-resident, since they have lived abroad for more than a year

Answer key unconfirmed.

9 A taxpayer ceasing Canadian residency asks whether anything happens to property he keeps. What should he be told to look into? All Canadian property must be sold before residency can cease The property is simply taxed as non-resident-owned from the departure date onward Nothing happens until the property is actually sold Ceasing residency can trigger a deemed disposition of certain property

Answer key unconfirmed — rests on 1 unverified claim.

Unanswered questions are marked wrong. There is no partial credit.