Studying abroad = factual resident?

Tax Topics
1

i have a client that went to study abroad in august. would this be considered factual. i have the returns still coupled and filing as common law

2

There are several threads on this forum discussing residency for tax purposes. It’s not a simple answer. You have to consider all the facts.

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3

okay thank you…
nothing is simple anymore with taxes argh!

4

I am quite familiar with Residency, so here’s my understanding in this.

When you look at residency, you consider two factors involved:

  1. Primary factors - has to do with a primary residence, spouse, etc. that ties down the individual to Canada regardless of their status outside of the country at the time being,

  2. Secondary factors - that includes bank accounts, drivers licenses, passports, i.e. paper documentation .

Accordingly, secondary factors alone are not enough to deem residency to an individual, but are considered when the residency status is in dispute. Given this, your client may still be considered a resident of Canada if they have significant primary ties within the country while travelling abroad. If the primary factors do not define your clients status as a resident, than your client may still be deemed a resident if the intent (as was defined by the courts previously) was to never permanently emigrate from Canada, and to return to Canada within a reasonable window (I believe CRA deems this prolonged period to be within 6 months).

For the sake of this discussion, I am unable to determine your clients residency status based on the information you have provided. However, I would assume your client has maintained a primary residence, and/or spouse, and the intent is to return to the country once they are done studying (assuming they are on a study permit)… in this case, your client would be a factual resident (NOT a deemed resident, there’s a difference).

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5

thank you for this information
you summarized it very well.
it appears she would be factual because she has her common law partner and all bank etc.

have a great day

6

Common-law is well considered as a primary factor given there is no breakdown in their co-inhabitance as a result of the studying, and assuming they have actually filed as a common-law in the past.

Cheers!