Taxation of Residents Vs. Non-Residents in Canada The provision of the Income Tax Act (“ITA“) that sets out who is liable to pay income tax in Canada is section 2. Subsection 2(1) states that an income tax shall be paid each year on the taxable income of “every person resident in Canada.” All resident persons must pay tax on […]
“Residency” as a Basis for Taxation Residency is the principal connecting factor used for Canadian tax purposes. It underscores the social and economic connections between a person and the taxing authority, which is why Canada uses residency status to imposes tax liability on the worldwide income of “every person resident in Canada.” A non-resident person, […]
What Are Corporations Under the Law? A corporation, as defined by law, is a separate and distinct legal entity from its owners or shareholders. This separation is a pivotal feature of a corporation and is explicitly outlined in section 15(1) of the Canada Business Corporations Act (CBCA). This section equates a corporation’s legal capacity, powers, […]