Regulation 2607 - Dual Residence

Cases

Sampson v British Columbia, 2018 BCSC 1503

Calgary executive with a large B.C. home had his “principal place of residence” in B.C.

Mr. Sampson, who was described (at para. 126) as “a wealthy CEO of an international energy company” (Niko) maintained a 600 square foot apartment within three blocks of the Niko Calgary headquarters. In the four taxation years in question between 24% and 29% of his days were in Calgary and between 39% and 46% of his days were in B.C., where there was a 10,000 square foot home (near his parents’ home) owned by his wife, and with contents insured for $2.1M, and where they also used their yacht. Over 20% and 7% of his time was spent respectively on business travel and personal stays outside Canada. Their social life was centred in B.C., although Mrs. Sampson and their grown children (who lived in B.C.) would occasionally visit him in Calgary, and he had one close friend and club memberships in Calgary. He had an Alberta health card and driver’s licence.

After stating (in applying Hauser) that “the question of a person’s residency in one jurisdiction will be answered by examining the person’s connection to that jurisdiction and will not be influenced by evidence of links to a second jurisdiction” (para. 108) and finding that Mr. Sampson was resident both in B.C. and Alberta, Gaul J found that B.C. was Mr. Sampson’s “principal place of residence” under Reg. 2607. He stated (at para. 123):

[T]he fact that Mr. Sampson spent close to half of his time in British Columbia points to a clear personal connection with the province. Moreover, when compared to how much time he spent in Alberta during the same period, the importance of his time in British Columbia is magnified. Finally, looking at the nature and quality of the time he spent in British Columbia, I am satisfied that Mr. Sampson had a much closer and profound personal tie with British Columbia than Alberta.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) residence in two provinces before tie breaker rule applied 130

Administrative Policy

22 March 1995 T.I. 941443 (C.T.O. "Residents in a Province (HAA 7576-1)")

"Generally, the principal place of residence of a person is the province where the person ordinarily resides in a permanent home with which he or she has close or social and economic ties."