1 Residency and Liability to Tax

Canadian Tax Fundamentals · 7:07

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Lyrics

[Verse 1]
Where do you call your home base
That's the question Canada will chase
Primary ties run deep and strong
Family home where you belong
Secondary ties paint the picture clear
Bank accounts and memberships here
Common law looks at your case
To find your ordinary place

[Chorus]
R-T-R, Residency Tax Rules
Primary Secondary Deemed - these are the tools
Two-fifty says you're deemed to stay
One-eight-three means you can't get away
R-T-R, know where you stand
Tax obligations across the land

[Verse 2]
Part-year means you moved around
Left or arrived on Canadian ground
Tax the days that you were here
Prorate income through the year
Non-residents listen close
Canadian source income counts the most
Employment property rental gains
Still subject to our tax chains

[Chorus]
R-T-R, Residency Tax Rules
Primary Secondary Deemed - these are the tools
Two-fifty says you're deemed to stay
One-eight-three means you can't get away
R-T-R, know where you stand
Tax obligations across the land

[Bridge]
When treaties clash and rules collide
Tie-breaker tests will be your guide
Permanent home comes first in line
Then center of vital interests shine
Habitual abode breaks the tie
Nationality is your last reply

[Verse 3]
Section two-fifty makes it clear
Deemed resident rules appear
Government servants overseas
Still Canadian tax with ease
One hundred eighty-three days or more
Makes you resident for sure
Sojourning rules will make you stay
Count every single day

[Chorus]
R-T-R, Residency Tax Rules
Primary Secondary Deemed - these are the tools
Two-fifty says you're deemed to stay
One-eight-three means you can't get away
R-T-R, know where you stand
Tax obligations across the land

[Outro]
Know your ties both strong and weak
Residency's what tax authorities seek
Common law or deemed status
Determines how they'll come and tax us

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