CRA indicates that “habitual abode” is determined in context based inter alia on relative stays and nature of activities

We have published a summary of today’s IFA Roundtable.

Q.1 was on how CRA applies the test of an in individual’s “habitual mode” under the “tie breaker” rules in most treaties. CRA responded that length of stays, and the nature of the activities, of the individual in each jurisdiction would have to be considered, to determine whether the individual usually lives in one state as compared to the other, and that the relevance of particular lengths of time would need to be considered in the circumstances: no set periods of time were applied as tests.

Neal Armstrong. Summaries of 17 May 2022 IFA Roundtable, Q.1 under Treaties - Income Tax Conventions – Art. 4 and ITA s. 2(1).