27 July 1989 Ruling 58293 F - Continuing Residence in Canada During Period of Employment

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.

July 27, 1989

19(1)

Re:  Emolument Received from 24(1)

This is in reply to your letter of April 4, 1989, addressed to the Ottawa District Taxation Office which has been forwarded to this Division for reply. We regret the delay in replying.

24(1)

Based upon the above and our telephone conversation 19(1)/Jones) of July 13, 1989, it is our view that you are considered to be a continuing resident of Canada during your period of employment with the 24(1)  and as such are taxable in Canada on your world income.  However, subsection 126(3) of the Income Tax Act provides for the deduction from your tax otherwise payable an amount equal to the tax otherwise payable on remuneration from the 24(1)  Accordingly, while this income is to be included in computing your income for tax purposes, you do qualify for this credit which is equal to the tax otherwise payable on this income.

We trust our comments will be of assistance to you.

Yours truly,

for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch

c.c.  Sudbury Taxation Centre