Determining a Client's Residency status in ProTax

A preparer may be unsure about a client’s residency status. There are several actions that can be taken to clarify residency status.

Asking questions about residential ties

There are several questions to ask to help determine status.

Do they have significant residential ties to Canada?

● a home in Canada
● a spouse or common-law partner in Canada
● any dependants in Canada

Do they have secondary residential ties to Canada?

● personal property in Canada, such as a car or furniture
● ties in Canada, such as memberships in Canadian recreational or religious organizations
● economic ties in Canada, such as Canadian bank accounts or credit cards
● a Canadian driver's license
● a Canadian passport
● health insurance within a Canadian province or territory

Reviewing the CRA eligibility guide

If you have not done so already, review the CRA article Determining your residency status to assist in determining your client’s residency status.

Complete Form NR74 or contact CRA

The CRA's T4055 Newcomers to Canada Guide states the following:

Do you need help determining your residency status?

If you are not sure whether you are a resident of Canada for income tax purposes, complete Form NR74, Determination of Residency Status (Entering Canada). Send us the form as soon as possible so we can give you an opinion on your residency status before your tax return is due.

Alternatively, you can contact the CRA directly and make an inquiry regarding a client’s residency status.