What mechanism is followed for determining the residence of a trust if two Canadian provinces are each of the opinion that the central management and control of the trust is in their territory, e.g., where CRA is responsible for the tax administration of one of the provinces concerned? CRA responded:
There is no specific mechanism for determining the question of the residence of a trust in an interprovincial context. For the purpose of the operation of the Canadian self-assessment tax system, that is a question of fact, and not one specific to trusts. It is likely to occur with respect to any Canadian taxpayer. That question is thus generally capable of being examined and discussed between the tax administrations and the taxpayer during an audit of the taxpayer. Furthermore, an assessment issued on a position adopted by a Canadian tax authority with respect to a taxpayer's place of residence may be challenged by the taxpayer in the course of a duly filed objection in accordance with the requirements of the applicable legislation.