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.
Non-Resident Taxation Division Specialty Rulings
Directorate
D.Y. Dalphy
957-2117
Attention: C. Charette
7-4297
Tax Guide
External Affairs Canada Employees
Outside Canada (the "guide")
Due to the limited time available, we have not been able to thoroughly review the guide; our review has been a cursory one and our comments are limited to those of a technical nature (e.g. we make no comments on grammar, etc.).
We offer the following comments in respect of the draft guide:
1. You may wish to modify comments regarding entitlement to claim deductions or credits with the words "applicable" or "relevant".
2. Re: "Deemed residents of Canada" (pages 3 and 4) inserting "(deemed or factual),' after "you were resident" would provide greater clarity.
3. Re: Tax Credits (page 4) As deemed residents may be entitled to claim certain refundable federal tax credits, add the following to the second last paragraph: "See the General Tax Guide for information about refundable federal tax credits".
4. Re: "Ceasing to be an EXTAFF employee while abroad" (page
6)
The words "or factual" (line 3) are confusing and should be deleted.
You may wish to delete the references "EXTAfF" and "External Affairs" and substitute "Canadian government (and you are not otherwise deemed to be resident in Canada)" in its place. This would more closely follow the wording in subparagraph 250(1)(c)(i) and subsection 250(2).
The final sentence (regarding spouses and children) is misleading.
5. Re: "The identification Area" (page 8, paragraph 2)
Horn does this fit with your comments in "Ceasing to be an EXTAFF employee while abroad"
6. Re: "Rental income" (page 9, paragraphs I and 2)
Delete the comments following "Rental income Tax Guide" as they are particular to External Affairs employees, can be found in that Guide and may tend to confuse (e.g., the draft guide does not comment on restrictions re cc.a. deductions).
21(1)(b)
Taxpayers should be advised to refer to any relevant bilateral income tax conventions which may have application.
This is particularly significant for persons who are neither deemed nor factual residents of Canada, but who, at one time, were resident in Canada and who, at a later time, began to work for the Canadian government.
Chief Foreign Section Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and intergovernmental Affairs Branch
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