8 July 1992 Income Tax Severed Letter 9210362 - Residence Status - Landed Immigrants

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.

921036
Jim Wilson
24(1) (613)957-2123

Attention: 19(1)

July 8, 1992

Dear Sirs:

Re: Determination of an Individual's Residence Status

We are writing in reply to your letter of March 9, 1992, addressed to the Vancouver District Taxation Office, in which you requested the Department's view on whether a person becomes a resident of Canada, for income tax purposes, at the time that he establishes permanent residency for immigration purposes by becoming a landed immigrant of Canada.

An individual will be considered a resident of Canada when he is either a factual or deemed resident of Canada. A deemed resident of Canada would include an individual who is not a factual resident of Canada but one who has sojourned in Canada in the year for a period of, or periods the aggregate of which is, 183 days or more.

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We are in agreement with you that a determination of an individual's factual residence status for income tax purposes must be based on an analysis of all the facts. Although an individual may establish permanent residency for immigration purposes, that fact alone would not cause him to be a factual resident of Canada for income tax purposes.

We understand a person may be granted landed immigrant status under the Immigration Act, 1976 if he can meet certain selection standards which are established for the purpose of determining whether or not he will be able to successfully establish himself in Canada. The mere fact that a person who is not a citizen of Canada has been granted landed immigrant status means that for purposes of the Immigration Act, 1976 he is a permanent resident. However, that determination of residency is based solely on criteria and objectives set out in the Immigration Act, 1976 and involves a different test than a determination of factual residency for purposes of the Income Tax Act. Landed immigrant status, or permanent resident status under the Immigration Act, 1976 is a means by which a person may legally enter Canada to enable him to establish ties and become eligible in the future to apply for citizenship. On the other hand, a determination of factual residency for purpose of the Income Tax Act is based on common law principles of residency and concerns what residential ties a person has in fact established within Canada as discussed in Interpretation Bulletin IT-221R2.

All individuals entering Canada who require a determination of residency status should complete form NR74 (copy attached) and send it to the address provided on the top of the form. The International Taxation Office will then make a determination of the individual's residence status. If you have any questions in this regard, a phone number has been provided on the form. You should note that an individual's landed immigrant status is only one of the factors requested on the form.

We trust the forgoing is satisfactory.

Yours truly,

for Director
Reorganizations and Foreign Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch

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