5 June 2002 External T.I. 2002-0143625 - Date of becoming a non resident

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 CCRA.

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

Principal Issues: What is the date that the individual becomes a non-resident?

Position: When all significant ties to Canada are severed or possibly sooner depending on application of 250(5) as Canada has a tax treaty with the Netherlands. It is a question of fact.

Reasons: See paragraph 15 of IT-221R3.

XXXXXXXXXX 2002-014362
Eliza Erskine
June 5, 2002

Dear XXXXXXXXXX:

Re: Date of Acquiring Non-Resident Status

This is in reply to your letter to us of May 29, 2002, requesting our opinion as to when you will become a non-resident of Canada for income tax purposes. We understand that you will be leaving Canada with your family on XXXXXXXXXX, in order to take up employment in Holland on XXXXXXXXXX.

Our Comments

The circumstances outlined in your letter relate to a specific, proposed fact situation. We note that written confirmation of the tax implications arising out of a particular fact situation are given by this Directorate only where the proposed transactions or events are the subject matter of an advance income tax ruling request. For information regarding applying for an advance income tax ruling, please refer to our Information Circular 70-6R4, Advance Income Tax Rulings, which can be obtained from your local Tax Services Office or from our website at www.ccra-adrc.gc.ca . Income tax ruling requests are handled by our Directorate on a priority basis.

For general information on the date that non-resident status is acquired, please consult paragraph 15 of IT-221R3, Determination of an Individual's Residence Status ("IT-221R3"). This document can be obtained from your local Tax Services Office or from our website at www.ccra-adrc.gc.ca . Generally, an individual is considered to be no longer resident in Canada for tax purposes once he or she severs his or her significant residential ties with Canada. This is a question of fact to be determined taking into account all of the circumstances of the particular situation.

As Canada has an income tax convention with Holland (that is, the Netherlands), you may also wish to consult paragraphs 24 to 26 of IT-221R3, as subsection 250(5) of the Income Tax Act may apply and deem you not to be resident in Canada after you move to Holland. The application of subsection 250(5) will depend upon your residence status for purposes of the Canada-Netherlands Income Tax Convention, which must be determined taking into account the terms of that convention, the facts of your particular situation, and the domestic tax laws of Canada and Holland. If subsection 250(5) applies, then you will be considered to be a non-resident of Canada from the earliest date that it applies.

We trust that our comments will be helpful to you. For further technical assistance in evaluating your residence status, we recommend that you contact the International Tax Services Office (ITSO). This office may be able to provide you with a non-binding determination of the date that you will be considered to have acquired non-resident status for tax purposes. Contact information for ITSO can be found at the end of IT-221R3.

Yours truly,

Jim Wilson
for Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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