I have a client that emigrated to Canada in December 2018. How do I treat their 2019 Tax return with regards to residency?
Important:
This answer is based on tax law for the tax year ending 28 February 2019.
Answer:
We are not sure exactly what guidance you require here. The first point is that the person must, in the 2019 return of income, the ITR12, answer the question relating to the fact that he or she ceased being a resident of the RSA and indicate the date that this happened during the year.
We assumed from the information provided that the individual was NOT a person who was deemed to be exclusively a resident of Canada for purposes of the application of any agreement entered into between the governments of the RSA and Canada for the avoidance of double taxation, prior to emigration.
Under section 9H, there is a deemed disposal of assets, other than immovable property and certain shares, and the capital gain must be declared in this return.