Principal Issues: [TaxInterpretations translation] The taxpayer who has already left Canada wished us to intervene to determine her tax residence status.
Position: We have not passed on her tax residence.
Reasons: The taxpayer is already in discussions with the International Tax Services Office to which she has submitted a NR73 request for determination. Furthermore, it is not our Directorate’s mandate to determine taxpayers' tax residence status.
XXXXXXXXXX 2011-042745 Nancy Turgeon, CGA December 8, 2011
Dear Madam,
Subject: Status of residence for tax purposes
This is in response to your letter of October 21, 2011 in which you requested our opinion on your tax residence status in Canada.
It is not the mandate of the Income Tax Rulings Directorate to determine the tax residence of an individual. That responsibility lies with the International Tax Services Office. As a general rule, our Directorate can only make a determination if it is informed in advance of all the facts that motivate the departure from Canada. It is our understanding, from reading your letter, that you have already submitted a NR73 Determination of Residency Status (leaving Canada) application to that office. We therefore believe it is appropriate to forward your correspondence and the accompanying documents to the person responsible for your file.
A determination of tax residence status is primarily used to determine the tax payable in Canada and to determine eligibility for certain government programs. It should be noted that different law is applicable with respect to Canadian citizenship.
Furthermore, we refer you to Interpretation Bulletin IT-221R3 Determination of an Individual's Residence Status. You will be able to read the determinants for residency status for Canadian tax purposes. To find an electronic version of this newsletter and other useful information, go to www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html.
Best regards,
Guy Goulet, CA, M.Fisc.
Manager
International Operations Division
Income Tax Rulings Directorate
Legislative Policy
and Regulatory Affairs Branch