Mr. A, who was previously non-resident, became a resident of Canada on August 1, 2005, but on October 1, 2007, left Canada. However, since his wife cannot remain in their new country of residence without a work visa, he is considering moving back to Canada on August 1, 2009. In connection with his return to Canada as a resident, he is contemplating transferring assets to a non-resident trust. When is Mr. A considered a "resident contributor" to that trust? CRA responded:
A resident contributor, in respect of a particular trust at any time, is an "entity" (which term includes, inter alia, a natural person) that, at that time, is both resident in Canada and a "contributor" (as defined in this subsection) to the trust. For the purposes of that definition, a resident contributor does not include, inter alia, an individual (other than a trust) who has not, at that time, been resident in Canada for a period of, or periods the total of which is, more than 60 months (other than an individual who, before that time, was never non-resident). For this purpose, we are of the view that any period of residence in Canada even if prior to a period when the person was non-resident in Canada would form part of the total number of months, calculated for the purpose of determining whether an individual is a resident contributor for the purposes of proposed section 94.
Under the hypothetical situation described herein, the 60-month period would include a first 26-month period from August 1, 2005 to September 30, 2007 and a second 34-month period from August 1, 2009 to May 31, 2012. Thus, for the purposes of subsection 94(3), as proposed in Bill C-10, Mr. A would be a resident contributor to the immigration trust after May 31, 2012.