Canadian Tax Residency Determination with Jeffrey Adema: Cross-Border Financial Planning Implications
In this video, Jeffrey Adema, President of Wealth Management, Cross Border at Cardinal Point Wealth Management, explains how Canadian tax residency is determined and why it’s a cornerstone of effective cross-border financial planning.
Jeffrey breaks down the four key sources that guide residency determination in Canada: statutory provisions in the Income Tax Act, common law principles established by Canadian courts, administrative interpretations by the Canada Revenue Agency (CRA), and the application of international tax treaties. He highlights that residency is a question of fact, not citizenship or immigration status, and depends on personal, economic, and social ties to Canada.
The video explores how establishing Canadian tax residency triggers a deemed acquisition of all worldwide investment assets—creating a new Canadian cost basis and requiring adjustments to investment management, tax reporting, and estate structures. Jeffrey also discusses the complexities of managing dual U.S. and Canadian tax obligations, especially for those holding U.S. retirement or education accounts.
Ultimately, he emphasizes the importance of proactive, coordinated cross-border planning to minimize double taxation and ensure compliance on both sides of the border. Viewers are encouraged to contact Cardinal Point Wealth Management to review their individual residency and tax scenarios.