S5-F1-C1: Determining an Individual’s Residence Status

1.51 As confirmed by the Supreme Court of Canada in Crown Forest Industries, reviewing the intention of the parties to a tax treaty is a very important element in delineating the scope of the application of the treaty. Accordingly, the determination of residency for the purposes of a tax treaty remains a question of fact, and each case should be decided on its own facts with an eye to the intention of the parties of the particular convention and the purpose of international tax treaties.

More information

1.52 For more information concerning Canada’s tax treaties with other countries, see the Tax Treaties page of the CRA website.

How to obtain a determination of residence status

International and Ottawa Tax Services Office

1.53 Taxpayers requiring further general information about how residence status is determined for purposes of Canadian income tax should contact International tax and non-resident enquiries at 1-800-959-8281 (toll free in Canada and the United States), or 613-940-8495 (for service in English), or 613-940-8496 (for service in French). Written enquiries should be addressed to:

International and Ottawa Tax Services Office
Post Office Box 9769, Station T
Ottawa ON K1G 3Y4
CANADA

1.54 Taxpayers who plan to leave or have left Canada, either permanently or temporarily, should consider completingForm NR73, Determination of Residency Status (Leaving Canada) and reviewing the information referred to in ¶1.24.Taxpayers who have entered or sojourned in Canada during the year should consider completing Form NR74, Determination of Residency Status (Entering Canada) and reviewing the information referred to in ¶1.29.

1.55 Once completed, Form NR73 or NR74, as applicable, should be mailed to the address given above or faxedto 613-941-2505. In most cases, the CRA will be able to provide an opinion regarding a taxpayer’s residence status from the information recorded on the completed form. This opinion is based entirely on the facts provided by the taxpayer to the CRA in Form NR73 or NR74, as applicable. Therefore, it is critical that the taxpayer provide all of the details concerning his or her residential ties with Canada and abroad. This opinion is not binding on the CRA and may be subject to a more detailed review at a later date and supporting documentation may be required at that time.

Income Tax Rulings Directorate

1.56 Where certainty is required in respect of the tax consequences of the proposed departure from or arrival in Canada of a particular individual taxpayer, the Income Tax Rulings Directorate may, in appropriate circumstances, be prepared to issue a binding advance income tax ruling with respect to the residency status of that taxpayer. Generally, such a ruling will only be available where all of the facts of the situation can be ascertained in advance of the proposed departure from or arrival in Canada of the taxpayer. For detailed information regarding applying for an advance income tax ruling, please see the current version of Information Circular IC 70-6R6, Advance Income Tax Rulings and Technical Interpretations or see Income tax rulings and interpretations.

Competent Authority Services

1.57 In limited situations it may be necessary for an individual to request the assistance of Competent Authority Services in order to resolve residency issues with treaty countries. To obtain more information, please refer to the current version of Information Circular IC 71-17R5, Guidance on Competent Authority Assistance Under Canada’s Tax Conventions.