Jo is a Canadian citizen.In March of 2020, Jo's employer transferred Jo to the United States.Jo's spouse and child moved with Jo at that time.Jo chose not to sell the family's home, and instead, now lends it to extended family from overseas during the winter months.Jo has five weeks of vacation each summer, at which time the family returns to Canada and stay in their house.Jo did not cancel a long-standing country club membership, nor did Jo close the family's Canadian bank accounts.Which of the following statements is true?
A)Jo is a Canadian citizen, and will therefore, automatically be considered a Canadian resident for tax purposes.
B)Jo no longer resides in Canada, and will therefore, automatically be considered a non-resident of Canada.
C)Jo is considered a part-time resident of Canada for the five weeks that Jo and family vacation in the country.
D)If Jo is considered to have a continuing state of relationship with Canada, Jo might be a resident for tax purposes.

Question

Quizplus · Accepted Answer

Jo's situation is a bit more complex than simply being a Canadian citizen or not residing in Canada. There are several factors that determine residency for tax purposes, such as residential ties (including the family home, bank accounts, and country club membership), the length and frequency of visits to Canada, and the nature and extent of Jo's ties with the United States. Based on these factors, it is possible that Jo may be considered a resident of Canada for tax purposes, even though Jo spends most of the year outside of Canada. The concept of a "continuing state of relationship" with Canada is also key, as it suggests that Jo has not completely severed ties with Canada and may still have significant connections to the country. Therefore, the best answer is D.

Jo Is a Canadian Citizen