Main factors in establishing a Canadian tax relationship:
The key difference between a tax resident and a non-resident of Canada is whether your
family’s center of life (Family Tie) is in Canada.
This is actually not directly related to your immigration status.

Main factors used to determine where your family’s center of life is:

• Having provincial health insurance and a local driver’s licence
• Spouse and minor children living in Canada on a long-term basis
• Living in Canada for more than 183 days in a year

Tax resident or non-resident?

Example 1: Has PR status but does not live in Canada long term

In 2018, Mr. Zhang immigrated to Canada and bought a condo as his principal residence.
Due to work reasons, he only lived there for three months and then returned to his home country.
Since then, he has been renting out the condo. For the past few years, Mr. Zhang has been filing his taxes
as a Canadian tax resident. However, when he decided to sell the condo this year, he received an inquiry from the CRA.

Having PR status ≠ Being a Canadian tax resident

Over the past few years, Mr. Zhang did not spend more than 183 days per year in Canada, and his work and life were mainly in China.
The CRA therefore determined that he was not a Canadian tax resident. As a result, both the rental income from this condo
and the capital gain from the eventual sale should have been treated under non-resident tax rules.
This is why Mr. Zhang received a review from the CRA.

Example 2: No PR status, but the center of life is in Canada

In 2018, Mr. Wang and his family immigrated to Canada. After landing and staying for about a month, Mr. Wang returned to his home country to work,
while his wife and children remained in Canada. Because he spent long periods working abroad, Mr. Wang eventually gave up his PR status.
However, last year he received a letter from the CRA asking him to file and correct several years of worldwide income and asset information.

Not living in Canada ≠ Being a Canadian non-resident for tax purposes

Although Mr. Wang gave up his PR status and spent fewer than 183 days per year in Canada, he continued to maintain a home in Canada,
and his spouse and minor children lived here long term. The CRA therefore considers his family’s center of life to still be in Canada,
which means Mr. Wang has Canadian tax obligations.