Winter is coming. 

 

Before you head south, or to a warmer destination to escape the cold of Canada, familiarize yourself with some of the rules regarding your tax residency before you find yourself offside with the CRA. 

 

Determining your tax residency status in Canada is essential for understanding your tax obligations. Residency status isn’t based on citizenship but rather on the residential ties you maintain in Canada, such as having a home, a spouse, or social connections. Whether you're a full-time resident or just spend part of the year in Canada, your tax liability changes. The CRA assesses significant and secondary ties to decide if you're a factual or deemed resident. Misinterpreting your residency status could lead to unexpected tax consequences, including worldwide taxation.

 

Our family office service team, which is a team of accredited tax and legal professionals, can help provide further perspective to you and your family. As we always say, with clarity comes confidence. So, let us help you get some clarity on your plans so you can confidently travel in peace. 

 

RBC Wealth Management Tax Residency article