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.
January 19, 1976
INDEXED
XXXX
Your recent letter to the Department of Finance concerning your taxation status while employed as teachers in Australia has been referred to us for reply.
Canadian residency is a question of fact based on the particular circumstances of each individual case: It is not open to an individual to elect to be considered a Canadian resident at his discretion. Attached is a copy of Interpretation Bulletin IT-221 which discusses this topic in some detail. You will note that Canadian citizenship has no bearing on the determination of residency and is not a consideration in the Income Tax Act.
You do not say, in your letter, whether you have sold or rented your home in Canada so we are unable to say conclusively whether you could be considered resident in Canada or-not. If you feel, after reviewing the bulletin, that you would qualify as a resident please contact us or the district office were you filed your last Canadian income tax return. Attached is a copy of the addresses of the various district offices for your reference.
Article 12 of the Canada-Australia Income Tax Agreement reads as follows:
Where a professor or teacher, who is a resident of one of the Contracting States, is temporarily present in the other Contracting State for the purpose of teaching during a period cot exceeding two years at a university, college, school or other educational institution in that other Contracting State, remuneration derived by him for so teaching for that period shall be exempt from tax by that other Contracting State.
The Australian Taxation Authorities appear to have taken the position that if a teacher remains a resident of Canada while teaching in Australia and otherwise fulfills the requirements of Article 12, Australian taxes will not be payable on the remuneration from teaching derived within Australia. On the other hand, if the teacher is not considered to be resident of Canada, Australian .tax is payable.
As for as your request to maintain your C.P.P. and U.I.C. coverage, we are unable to help you. Coverage is not available to persons employed outside of Canada by persons not resident in Canada. When you return to Canada you will be able to resume payments into these plans.
Yours sincerely, Original signed by
A.C. BONNEAU
A.C. Bonneau Director Provincial and International Relations Division
JRO/jb
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