For each of the following scenarios, indicate the taxpayer's likely residency status for the year and...

 

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For each of the following scenarios, indicate the taxpayer's likely residency status for the year and WHY. Explain how each will be taxed in Canada as a result. Ignore the impact of any tax treaties (outside scope of this course). a) Bharti lives in Ottawa, Canada, and lives in her parents' home. In April 20x1, she finished university and decided to travel before starting work. She spent May 1 - November 30, 20x1 backpacking across most of Europe and through parts of Asia. She returned to her parents' home in December and started work. She found a duplex to rent with a few friends, and will move there on January 1, 20x2. b) Terrence lived in Lyon, France his whole life, but visited Canada from January 5, - September 30, 20x1. He liked it so much, he decided to move his family to Canada. They moved on December 5, 20x1, selling their home in France and signing a 12-month lease in Fredericton. c) Poon Corp. was incorporated in Mexico in 1980. It has permanent establishments in many countries, including five in Canada which earned about $1,000,000 in income each in 20x4. Six of eight board members are Canadian. Board meetings tend to take place remotely, but they meet in person at least once annually in Vancouver, BC. Poon's total income for tax purposes in 20x4 was $60,000,000. For each of the following scenarios, indicate the taxpayer's likely residency status for the year and WHY. Explain how each will be taxed in Canada as a result. Ignore the impact of any tax treaties (outside scope of this course). a) Bharti lives in Ottawa, Canada, and lives in her parents' home. In April 20x1, she finished university and decided to travel before starting work. She spent May 1 - November 30, 20x1 backpacking across most of Europe and through parts of Asia. She returned to her parents' home in December and started work. She found a duplex to rent with a few friends, and will move there on January 1, 20x2. b) Terrence lived in Lyon, France his whole life, but visited Canada from January 5, - September 30, 20x1. He liked it so much, he decided to move his family to Canada. They moved on December 5, 20x1, selling their home in France and signing a 12-month lease in Fredericton. c) Poon Corp. was incorporated in Mexico in 1980. It has permanent establishments in many countries, including five in Canada which earned about $1,000,000 in income each in 20x4. Six of eight board members are Canadian. Board meetings tend to take place remotely, but they meet in person at least once annually in Vancouver, BC. Poon's total income for tax purposes in 20x4 was $60,000,000.

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a Bharti here is a resident of Canada for taxation purposes as she has significant residential ties ... View the full answer