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 Department.
Prenez note que ce document, bien qu’exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Province of Residence on December 31.
Position: Where resident of two provinces, deemed to reside in province reasonably regarded as his principal place of residence.
Reasons: Regulation 2607.
Xxxxxxxxxx 991714
Wm. P. Guglich
September 10, 1999
Dear XXXXXXXXXX
Re: Province Of Residence
This is in reply to your letter of June 12, 1999, requesting our views regarding your province of residence on December 31, 1998.
You indicated that you have been employed by a company based in Edmonton. In XXXXXXXXXX, your employer requested that you fulfill a short term contract with a Saskatchewan based firm, at the completion of which, you would return to Alberta and resume your duties in the Edmonton office.
You requested our views as to your province of residence (Alberta or Saskatchewan) on December 31, 1998, to determine whether you should have filed province of Alberta or Saskatchewan tax returns.
In your letter you have outlined a completed transaction and therefore we bring to your attention Information Circular 70-6R3, dated December 30, 1996, issued by Revenue Canada. As indicated in paragraph 22 of Information Circular 70-6R3, a request for a written opinion on a completed transaction is usually considered by the taxpayer's local tax services office, However, while we are unable to provide a definitive opinion in respect of your specific situation, we have provided general comments. Also, we have forwarded a copy of this letter to the Winnipeg Tax Centre, so that they will be aware of our views. We suggest that you consult with them if you need further assistance. Their toll free telephone number is 1-800-565-5300.
A person can have more than one residence at a particular time. Therefore, if a person has a residence available that can be occupied and used at any time in two provinces and has personal ties with both provinces, that person could be considered to be resident of both provinces. To determine which province in Canada a person is resident of, section 2607 of the Income Tax Regulations states that where an individual was resident in more than one province on the last day of the taxation year, for the purposes of computing income earned in a province, he or she shall be deemed to have resided on that day only in that province which may reasonably be regarded as his or her principal place of residence. The determination of the principal place of residence is a question of fact, and all the facts and circumstances surrounding a particular situation have to be examined before a final determination can be made. Generally, the principal place of residence of a person is the province where the person ordinarily resides in a permanent home and with which he or she has closer social and economic ties.
We trust our comments will be of assistance.
Yours truly,
John Oulton
Manager
Business, Property and Employment Section III
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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