Subsection 250(5) of the Income Tax Act deems a person to be a non-resident in Canada if a Canadian tax treaty renders that person a tax resident of Canada’s treaty partner.
Law text:
(5) Notwithstanding any other provision of this Act (other than paragraph 126(1.1)(a)), a person is deemed not to be resident in Canada at a time if, at that time, the person would, but for this subsection and any tax treaty, be resident in Canada for the purposes of this Act but is, under a tax treaty with another country, resident in the other country and not resident in Canada.
My question: if a person is a tax resident in a country which Canada has tax treaty with and he/she only stayed in Canada for one week in the entire tax year and his/her income comes from another country other than Canada. Even though he/she is a PR, based on this law, he/she does not need to file Canada tax because they are considered as non-resident? Is my understanding correct?
Subsection 250(5) of the Income Tax Act deems a person to be a non-resident in Canada if a Canadian tax treaty renders that person a tax resident of Canada’s treaty partner.
Law text:
(5) Notwithstanding any other provision of this Act (other than paragraph 126(1.1)(a)), a person is deemed not to be resident in Canada at a time if, at that time, the person would, but for this subsection and any tax treaty, be resident in Canada for the purposes of this Act but is, under a tax treaty with another country, resident in the other country and not resident in Canada.
My question: if a person is a tax resident in a country which Canada has tax treaty with and he/she only stayed in Canada for one week in the entire tax year and his/her income comes from another country other than Canada. Even though he/she is a PR, based on this law, he/she does not need to file Canada tax because they are considered as non-resident? Is my understanding correct?
if you want to know your tax residency status contact CRA and they will determine whether you are a tax resident. Do you have any ties to Canada like dependents living in Canada, financial accounts in Canada, property in Canada, etc. ? if youhave only been in Canada for a short landing (for example 10 days) and have no other ties to Csnada why do you want to file taxes in Canada for 2022?
