BU357 Chapter 2: Chapter 2- Liability for Tax
Document Summary
Resident: pays tax in canada on worldwide income. Non-resident: pays tax in canada on income earned in canada from employment, carrying on business, and from disposal of taxable canadian property. Part-year resident: year in which status changed; either became a resident or a non-resident during the year. Period of residency: pay tax in canada on worldwide income. Period of non-residency: pay tax in canada on income earned in canada from employment, carrying on business, and from disposal of taxable canadian property. Ita 2(1): an income tax shall be paid as required by this act on the taxable income for each taxation year of every person resident in canada in any time of the year. Country in which income is earned has priority in taxing that income and the country of which the t/p is a resident allows all or some part of the foreign tax paid as a credit against the domestic tax.
