| 24(1) | 5-9749 |
| M.P. Sarazin | |
| (613) 957-2125 |
Attention: 19(1)
July 25, 1990
Dear Sirs:
Re: Subsections 115(2) and 250(1) of the Income Tax Act (Canada) (the "Act")
We are writing in response to your letter dated March 12, 1990 wherein you requested our opinion regarding the application of subsections 115(2) and 250(1) of the Act to the following situation. We apologize for the delay in responding to your request.
Facts
1. Mr. X, a citizen of a foreign country, is presently enrolled, full time, at a Canadian university.
2. Mr. X rents an apartment in a Canadian city and sojourns in Canada for more than 183 days in the calendar year.
3. Mr. X is deemed to be a resident of Canada pursuant to subsection 250(1) of the Act.
It is your opinion that subsection 115(2) of the Act should take precedence over subsection 250(1) of the Act. You feel that the true intention of the Act is that subsection 115(2) should apply to all non-resident full time post-secondary students in Canada.
In your letter you have outlined an actual fact situation related to an event which has already taken place. As the review of such events falls within the responsibility of District Taxation Offices and it is the practice of this Department not to comment on such transactions when the identities of the taxpayers are not known, we are unable to comment thereon. However, we can provide you with the following general comments which we hope will be of assistance to you.
If a person sojourns in Canada in a year for a period of 183 days or more then that person is deemed for all purposes of the Act to be a resident of Canada throughout that particular taxation year pursuant to the provisions of subsection 250(1) of the Act. Accordingly, a person who is deemed by subsection 250(3) to be a resident of Canada would not be a non-resident for purposes of subsection 115(2) of the Act. This position is stated on page 5 of the Tax Guide for International Students Studying-in Canada. The guide states:
"Most international students are present in Canada for 183 days or more and as a result, are deemed to be residents of Canada for tax purposes. They are therefore subject to tax on their world income for the calendar year. World income is income from all sources both inside and outside of Canada".
A copy of the guide is enclosed for your convenience.
Our general comments herein are provided in accordance with the practice referred to in paragraph 24 of Information Circular 70-6R.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch