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ARTICLE · 12 MAY 2022

Post-COVID Emigration: Don't Forget The Tax!

Miller Thomson
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As COVID-19 travel restrictions are lifted, individuals who are usually resident in another country but sheltered in place in Canada during the pandemic may decide to return to their countries of residence.

CanadaTax
Carolyn Inglis
Carolyn Inglis
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As COVID-19 travel restrictions are lifted, individuals who are usually resident in another country but sheltered in place in Canada during the pandemic may decide to return to their countries of residence. Those individuals who are planning to leave Canada should remember to ensure their Canadian tax obligations are satisfied prior to their departure.

A person might be deemed resident in Canada throughout the taxation year for purposes of the Income Tax Act (the “Act”) if the person sojourned in Canada for 183 days or more. The Canada Revenue Agency (“CRA”) has issued an administrative position in light of the extraordinary circumstances of the pandemic that it will not consider the days during which an individual is present in Canada, and is unable to return to their country of residence solely as a result of travel restrictions, to count toward the 183 day limit for deemed residency. This administrative position will apply where the individual is usually resident

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