Income Tax Regulations

2601 (1) If an individual resides in a particular province on the last day of a taxation year and has no income for the taxation year from a business with a permanent establishment outside the province, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year.

(2) If an individual resides in a particular province on the last day of a taxation year and has income for the taxation year from a business with a permanent establishment outside the particular province, the individual’s income earned in the taxation year in the particular province is the amount, if any, by which

• (a) the individual’s income for the taxation year

exceeds

• (b) the total of all amounts each of which is the individual’s income for the taxation year from carrying on a business that is earned in a province other than the particular province or in a country other than Canada, determined in accordance with this Part.

(3) If an individual, who resides in Canada on the last day of a taxation year and who has carried on business in a particular province at any time in the taxation year, does not reside in the particular province on the last day of the taxation year, the individual’s income earned in the taxation year in the particular province is the individual’s income for the taxation year from carrying on business earned in the particular province, determined in accordance with this Part.

(4) If an individual resides in Canada on the last day of a taxation year and carried on business in another country at any time in the taxation year, the individual’s income earned in the taxation year in that other country is the individual’s income for the taxation year from carrying on business earned in the other country, determined in accordance with this Part.

(5) In this section, a reference to the “last day of a taxation year” is deemed to be a reference to

• (a) the “last day in the year on which the individual resided in Canada”, in the case of an individual who resided in Canada at any time in the year but ceased to reside in Canada before the end of the year; and

• (b) the “day in the year on which the individual would have ceased to reside in Canada, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act,”, in the case of a particular individual described in paragraph 250(1)(d.1) of the Act, or of another individual who is a spouse, common-law partner or child of the particular individual, who

  • (i) was resident in Canada at any time in the year,

  • (ii) would have ceased to be resident in Canada before the end of the year, if the Act were read without reference to paragraphs 250(1)(d.1) and (f) of the Act, and

  • (iii) is, pursuant to paragraph 250(1)(d.1) or (f) of the Act, deemed to have been resident in Canada throughout the year.