31 July 2000 External T.I. 1999-0014055 - Dual Residency

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues: dual residency

Position: question o f fact

Reasons: question of fact

XXXXXXXXXX 1999-001405
G. Middleton
(613) 957-2122
Attention: XXXXXXXXXX

July 31, 2000

Dear Sir\Madam:

Re: Application of subsection 250(5)

This is in reply to your facsimile of December 7, 1999 concerning the application of subsection 250(5) of the Income Tax Act (the "Act") for individuals who left Canada between January 1, 1998 to February 24, 1998.

An individual's residency status at any particular time is a question of fact. For example, does such an individual actually cease to be resident in Canada, continue to be resident in Canada, become a resident of another country or become a dual resident of Canada and another country on or before February 24, 1998.

If such an individual can establish that, on February 24, 1998, the individual: is a resident of Canada and is also a resident of another country for the purposes of paragraph 1 of the "Residence" article of a tax treaty that the other country has with Canada; and, in accordance with the dual residency "tie-breaker" rules in such tax treaty, the individual is considered to be a resident of the other country for purposes of the tax treaty; the provisions of subsection 250(5) of the Act will not apply to this individual as long as this residence status continues.

If, on February 24, 1998, such an individual's residency status is not as described in the immediately preceding paragraph but does in fact become so at a time after February 24, 1998, the individual is deemed not to be resident in Canada at such time by virtue of subsection 250(5) of the Act.

We trust our comments will be of some assistance to you.

Yours truly,

for Director
Reorganizations and International Division
Income Tax Rulings Directorate
Policy and Legislation Branch

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