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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether a deemed non-resident pursuant to subsection 250(5) must report his worldwide income in its income tax return.
Position: No
Reasons: Non-residents, whether deemed or factual, are only liable to tax on their taxable income earned in Canada.
XXXXXXXXXX 2002-015228
Éric Allard-Pouliot
September 24, 2002
Dear XXXXXXXXXX:
Re: Technical Interpretation Request : Subsection 250(5)
This is in reply to your facsimile of July 8, 2002, regarding the above-noted subject. More particularly, you request our opinion as to whether an individual who is deemed to be a non-resident pursuant to subsection 250(5) of the Income Tax Act (the "Act") must report his income on a worldwide basis in his income tax return.
An individual who is a non-resident of Canada, whether factual or deemed pursuant to subsection 250(5) of the Act, is not required to file an income tax return unless at least one of subparagraphs 150(1.1)(b)(i) to (iv) applies. Moreover, pursuant to subsection 2(3) of the Act, non-residents are only liable for Part I tax on their taxable income earned in Canada determined in accordance with Division D of the Act. Therefore, in our view an individual who is deemed to be a non-resident pursuant to subsection 250(5) of the Act, just like any factual non-resident, does not have to report his income on a worldwide basis in his income tax return when such a return must be filed.
The above comments are an expression of opinion only and are not binding on the Canada Customs and Revenue Agency, as explained in paragraph 22 of Information Circular 70-6R5.
We trust that the foregoing will be of assistance to you.
Alain Godin, Manager
International and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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