CRA Country of Residency (COR) information

[tracey.boyd-brown@ccra-adrc.gc.ca]

Submission from Leslie-Ann Scott, Canada Revenue Agency

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The tax system in Canada has no mandatory form for taxpayers to declare their COR.

Attached are links for the four forms available relating to COR.

1.  NR73 - Determination of Residency Status (Leaving Canada)= Individuals
http://cra.gc.ca/E/pbg/tf/nr73/README.html

2.  NR74 - Determination of Residency Status (Entering Canada) = Individuals
http://cra.gc.ca/E/pbg/tf/nr74/README.html

3.  P-009 - Determining Proof of Residency and Registration Status = Excise Act
http://cra.gc.ca/E/pub/gl/p-009/README.html

4.  Schedule D of the Individual Income Tax Return (T1) return - Information about your residency status
http://cra.gc.ca/E/pbg/tf/t1248/README.html

Individuals:
- Canada Revenue Agency relies on the self-assessment system for taxpayers to declare their residency via filing of the T1 returns by completing the field "Date of Entry" on page 1 of the return.
- There is no legal form for taxpayers to complete to declare their COR.  However, should we have questions about their COR, we would request the taxpayers to complete form NR 73 (for leaving Canada) or NR 74 (for entering into Canada) to help determine their COR.  These forms are not mandatory.
- Sometimes, Social Insurance Numbers (SINs) could be used to determine if the taxpayer is a resident, but SINs are really there to identify citizenship, not residency.

Corporations:
- In general, a corporation's residency is based on where the business was incorporated, i.e. where the Charter / certificate of incorporation was issued.  The Charter / certificate could be issued provincially or federally, depending on the registration, and the information is stored in our Business Number system (BNS).
- For non-resident corporations, determination of residency is based on other factors, e.g. the location of permanent establishment and directors. 
- A corporation also declares its residency by virtual of filing a T2 return and indicates its COR on the return.
- Information on incorporation is passed through and updated on BNS via an autocreate process (Ontario), gazette registration, partnership create process, or directly by corporations.

Trusts:
- There is no form for trusts to declare the COR, which is determined based on the residency of the trustee or the executor.
- The COR is indicated on the T3 Trust return.

Partnerships:
- Identification of residency is via filing of the Partnership Information Returns.  There is no form for declaration.
- Canada has Income tax conventions (treaties) with more than 60 countries. Country code is reported in the Statement of Partnership Income (T5013).