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.
| |
August 3, 1989 |
| TO - Non-Resident Taxation Division |
FROM - Specialty Rulings |
| |
Directorate |
| J. Hartwick |
O. Laurikainen |
| |
957-2125 |
| |
File No. 7-3918 |
SUBJECT: Application of section 118.91 of the Income Tax Act (the "Act") to part year residents of Canada
This is in response to your memorandum of May 15, 1989, wherein you enquired about the definition of the term "year" as it is used in section 118.91 of the Act.
While paragraphs 114(a) and 114(b) of the Act instruct the reader to look upon the period in the year in which the taxpayer was resident in Canada and the period in the year in which he was a non-resident of Canada as separate taxation years, this is to be done only for the purpose of computing income and taxable income earned in Canada during those periods. Section 114 requires those two amounts to be added together to determine "taxable income for the taxation year". Since section 118.91 of the Act deals with the determination of deductions from tax payable for a particular taxation year, the term "year" referred to therein should be given its normal meaning i.e., calendar year. Accordingly, in our view, the restriction set out in that section applies to any individual who does not include all or substantially all of his world-wide income for the calendar year in computing his taxable income for the calendar year.
D. Dalphyfor DirectorReorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch
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© Her Majesty the Queen in Right of Canada, 1989
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