Oct 03, 2016
the CRA views these entities to be corporations for Canadian… Read more »
“An individual’s residency often depends on his ties to a country.”
Mr. Hauser, an Air Canada pilot, claimed to be a non-resident of Canada, and resident in the Bahamas (2006 FCA 216 and  4 CTC 2260).
The Tax Court held that he was dual resident. This was confirmed by the Federal Court of Appeal. The CRA agreed that he was a resident of the Bahamas, so that was not an issue.
Mr. Hauser’s ties to Canada were extensive, even after he and his spouse moved to the Bahamas. They included:
There is no tax treaty between Canada and the Bahamas, so an individual can be held to be resident in both jurisdictions.
The Tax Court held that he was dual resident in Canada and the Bahamas. He was consequently liable to Canadian taxation on his worldwide income.
The Federal Court of Appeal unanimously upheld that decision; noting that Mr. Hauser’s presence in Canada was not “occasional, casual, deviatory, intermittent, or transitory.”
It is clear that, in the absence of a tax treaty with the other jurisdiction, a taxpayer cannot claim to be a non-resident of Canada merely by becoming resident elsewhere. He or she must cut all ties with Canada, which Mr. Hauser certainly did not.
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