See Also
Antle v. The Queen, 2009 DTC 1305, 2009 TCC 465, aff'd 2010 DTC 5172 [at 7304], 2010 FCA 280
After finding against the taxpayer on other grounds, Campbell Miller, J. found that s. 250(5) would not cause a Barbados trust, that was intended under a tax plan to be deemed by s. 94(1)(c)(i) to be resident in Canada for purposes of Part I of the Act, to be deemed not to be resident in Canada for purposes of the Act. First, in order for s. 250(5) to apply, the trust was required to be resident in Canada for purposes of the Act, whereas under s. 94(1)(c)(i), it was only deemed to be resident in Canada for purposes of Part I, second, as there is no application of the tie-breaker rules in the Canada-Barbados treaty, the trust had not been found not to be resident in Canada under that treaty.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | interjection of Barbados trust defeated policy | 179 |
Administrative Policy
24 May 2018 External T.I. 2017-0710641E5 - Interest Charge Domestic International Sales Corp
In the course of confirming that an “Interest Charge Domestic International Sales Corporation, would qualify as a resident of the U.S. for surplus-computation purposes, CRA noted that its central mangement and control was in the U.S.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(11.2) | U.S. IC-DISC is “resident” of the U.S. for Treaty purposes as the U.S. asserts its jurisdiction to tax and grants benefits only on continued meeting of conditions | 395 |
| Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Exempt Earnings - Paragraph (d) | CMC of FA must be in the DTC and it must be liable to tax therein (albeit, may be conditionally exempted) | 233 |
S5-F1-C1 - Determining an Individual’s Residence Status
Where subsection 250(5) applies, an individual will be deemed to be a non-resident of Canada for all purposes of the Act (that is, the individual will cease to be a resident of Canada from that time). The rules applicable to individuals ceasing to be resident in Canada, including the provisions deeming an individual to dispose of certain property and the Part XIII withholding tax provisions, will apply from that date... .
3 November 2008 External T.I. 2008-0278431E5 F - Déménagement hors Canada du siège soc. de société
In the context of a general discussion of consequences where there was an acquisition of control of a corporation incorporated in Canada in 2005, but with a shift of its sales and administrative functions to a non-resident location, CRA indicated that even if its central management and control had moved to outside Canada, it would continue to be deemed by s. 250(4) to be resident in Canada, unless by virtue of an applicable tax treaty it was deemed to not be resident by virtue of s. 250(5). CRA also noted:
A non-resident corporation would be required to file a T2 return even if it claimed an exemption from Canadian tax under a tax treaty on all profits and gains.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | OECD Commentary informs allocation of sales through non-resident office to Cdn manufacturing operation | 172 |
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Investment Tax Credit - Paragraph (a.1) | ITC potentially available to a non-resident corporation carrying on business in Canada | 97 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) | s. 4(1)(b) requires allocation between Canada and another country on basis of relative profit contribution | 172 |
8 July 2002 External T.I. 2002-0136615 F - Par. 250(5) - Déclaration de revenus
CCRA indicated that an individual who is deemed to be a non-resident of Canada by s. 250(5) is not required to declare world income in the individual's income tax return and is only required to file a return in any of the circumstances listed in 115(1)(b) - and, if such a return is required to be filed, the individual's taxable income is to be determined in accordance with Division D (ss. 115 et seq.).
27 June 1994 External T.I. 9406005 - CORPORATE STATUS OF A DELAWARE LLC (4093-U5-100-4)
If a Delaware limited liability company having its central management and central in Canada is treated as a partnership rather than a corporation for purposes of the Internal Revenue Code, with the result that the shareholders rather than the company are liable to tax under the Code on the income of the company, paragraph 3 of Article IV of the Canada-U.S. Convention will not apply, s. 250(5) of the Act will not apply, the company will not be a foreign affiliate and will be taxed under the Act as a resident of Canada.