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.
Principal Issues: Request for residency determination
Position: Not provided.
Reasons: Only done in context of audit.
XXXXXXXXXX
2013-050851
Terry Young
613-957-8283
July 30, 2014
Dear XXXXXXXXXX:
Re: Provincial Residency XXXXXXXXXX
We are replying to your October 4, 2013, letter requesting a ruling on the provincial residency status of your above-noted client. We also acknowledge our various telephone conversations.
In your letter, you stated that your client filed his T1 Returns for XXXXXXXXXX to XXXXXXXXXX on the basis that he was a resident of XXXXXXXXXX and that the CRA has accepted his returns as filed. You also included a number of factors that your client relied on in support of his filing position. You further advised us that the Ministère du Revenu du Québec ("MRQ") has assessed your client as a resident of Quebec for the years in question and that your client has filed notices of objection with the MRQ.
Our comments
The Income Tax Rulings Directorate helps taxpayers and tax practitioners with complex questions about the Income Tax Act. We issue taxpayer-specific, advance income tax rulings for proposed transactions, as well as general technical interpretations. Technical interpretations are meant to give taxpayers and their advisors information that will help them file their tax returns. These interpretations do not confirm how income tax is applied in a taxpayer's particular situation.
As we discussed, although the CRA tries to meet the needs of all taxpayers and their advisors, the Canadian tax system relies on self-assessment because it is not possible to review the facts of every taxpayer's situation. As such, the CRA does not provide provincial-residency determinations except in the course of a CRA audit, which is not the case in your client's situation.
Given that your client has filed and been assessed as a resident of XXXXXXXXXX during the years in question, there is no action for the CRA to take at this time. Once your client's objections with the MRQ have been appropriately dealt with, you should contact the appropriate Taxation Centre if further assistance is required. Given that under federal income tax legislation, there are time limitations for requesting adjustments to tax returns, you may wish to consider contacting your client's local Taxation Centre regarding the issue and discuss the filing of a waiver in respect of the years in question.
We trust that our comments will be of assistance.
Yours truly,
Terry Young, CPA, CA
Manager, Administrative Law Section
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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