Sandra DaCosta

Canadian tax residency is a complex topic. One of the biggest mistakes I see is assuming that a persons legal immigration status determines their tax residency in Canada. Immigration status in Canada does not determine tax residency status. For example, one can be a citizen of Canada but be a non-resident of Canada for tax purposes.

Canada imposes tax on individuals based on their status as either a resident or non-resident. Individuals resident in Canada are subject to Canadian tax on their worldwide income from all sources. Non-residents, on the other hand, are subject to Canadian tax only on Canadian-source income. Therefore, determination of residency is crucial for Canadian tax purposes.

Unfortunately there is no simple, clear-cut rule for determining residency for Canadian purposes. For example, the date of your actual landing in Canada for immigration purposes does not definitively determine your residency for tax purposes.

Residency is a question of fact and the courts have established a number of criteria that the Canada Revenue Agency uses to determine residency for tax purposes. For example, what primary and secondary ties do you have to Canada? What ties do you have to your home country? Is there a treaty? Are you a resident of the other country under that treaty? The list goes on!

Residency is a common topic in my tax practice. It’s always recommended that taxpayers seek out professional guidance from a cross border/international tax advisor before establishing or breaking Canadian tax residency.

Happy Mothers Day to all the beautiful mothers today. “The natural state of motherhood is unselfishness.” — Jessica Lange 💐

Did you get your household 2026 Census questionnaire yet? If so, will you be participating in it as required by law?

Been reading various news reports of people sending their 2026 Census questionnaires back out of protest….what’s your opinion on this? 🤔

Personally I think it’s important to participate and complete the Census regardless of your political views. The Census paints a portrait of Canada’s population and farming sector. The information everyone provides produces statistics that communities, businesses, and governments rely on to plan services, develop programs, and make informed decisions about employment, schools, public transportation, hospitals and more.