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.
Principal Issues: On behalf of his client, XXXXXXXXXX has brought two issues to light for our consideration:
1. Is their any way Client can voluntarily repay OHIP for the medical expenses that they covered in error; and
2. Does the fact that the OHIP card was used deem Client to be a Canadian resident (regardless of their wishes)?
Position: 1) Yes. 2) Unknown.
Reasons: 1) The client may contact Ontario's Ministry of Health and Long-Term Care either by phone or email. 2) Adequate information was not provided.
NOTE: View original document in Word.
XXXXXXXXXX 2010-036006
Phil Thompson
March 24, 2010
Dear XXXXXXXXXX :
Re: Residency Status
We are writing in reply to your correspondence of March 10, 2010 in which you requested our view as to whether your unnamed client would be considered a resident of Canada for tax purposes as a result of inadvertently using their Ontario health card on a recent visit to Canada. In your letter you also asked if it is possible for your client to repay Ontario for the expenses that were covered by OHIP (i.e., that should not have been).
You mentioned in your letter the following facts with respect to your client:
1. Client is a citizen of Canada;
2. Client was previously a resident in Canada;
3. Client is currently living outside Canada; and
4. Client retained provincial OHIP after ceasing to be a resident of the province of Ontario.
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of a request for an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, "Advanced Income Tax Rulings", dated May 17, 2002. This Information Circular and other Canada Revenue Agency ("CRA") publications can be accessed on the internet at http://www.cra-arc.gc.ca. Where the particular transactions are complete, the inquiry should be addressed to the relevant tax services office, a list of which is available on the "Contact Us" page of the CRA website. Although we cannot comment on your specific situation, we are prepared to provide the following comments in respect of the issues that you raised. Please note, however, that these comments are of a general nature only and are not binding on the CRA.
Our Comments
All of the facts and circumstances of a particular situation have to be thoroughly examined before a determination of an individual's residency can be made. The CRA's views on the determination of an individual's residency are set out in Interpretation Bulletin IT-221R3 Determination of an Individual's Residence Status.
As indicated in paragraph 11 and 12 of IT-221R3 the fact that your client was previously resident in Canada could be relevant in a residency determination as could the duration and number of subsequent visits (see paragraph 13 of IT-221R3). Furthermore, as set out in paragraph 8(e) of paragraph IT-221R3 OHIP coverage may be relevant to that determination. However, due to the lack of any other information provided to us, it is not possible to determine your client's factual or deemed residence for Canadian income tax purposes.
OHIP
Concerning your client's wish to reimburse Ontario's Ministry of Health & Long-Term Care for the medical expenses that were covered under OHIP (i.e., that you acknowledge should not have been), it has been suggested to us by an OHIP agent that your client may contact that Ministry by phone (at 1-888-781-5556) and/or by email (at reportohipfraud@moh.gov.on.ca) to make arrangements to reimburse the expenses.
We trust the foregoing is of assistance.
Yours truly,
Olli Laurikainen
Section Manager
for Division Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Planning Branch
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