Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Individual resident in Canada for only part of year

114 Notwithstanding subsection 2(2), the taxable income for a taxation year of an individual who is resident in Canada throughout part of the year and non-resident throughout another part of the year is the amount, if any, by which

• (a) the amount that would be the individual’s income for the year if the individual had no income or losses, for the part of the year throughout which the individual was non-resident, other than

  • (i) income or losses described in paragraphs 115(1)(a) to (c), and

  • (ii) income that would have been included in the individual’s taxable income earned in Canada for the year under subparagraph 115(1)(a)(v) if the part of the year throughout which the individual was non-resident were the whole taxation year,

exceeds the total of

• (b) the deductions permitted by subsection 111(1) and, to the extent that they relate to amounts included in computing the amount determined under paragraph (a), the deductions permitted by any of paragraphs 110(1)(d) to (d.2) and (f), and

• (c) any other deduction permitted for the purpose of computing taxable income to the extent that

  • (i) it can reasonably be considered to be applicable to the part of the year throughout which the individual was resident in Canada, or

  • (ii) if all or substantially all of the individual’s income for the part of the year throughout which the individual was non-resident is included in the amount determined under paragraph (a), it can reasonably be considered to be applicable to that part of the year.