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Canadian Income Tax Question
Tiffany MacGraw, a Canadian citizen, left Canada in 2005 to settle in a country with which Canada has no tax treaty. In 2011, her 26-year-old daughter Cassidy came to Canada to attend university. On January 27, 2013, after completing her studies, Cassidy decided to remain in Canada on a permanent basis. To help her daughter settle in Canada, Tiffany made numerous visits to Canada in 2013 to see Cassidy. Tiffany visited her daughter from January 15 to March 15, and from May 10 to August 31.
Required
Determine if Tiffany and Cassidy are liable for Part I tax on their worldwide income for 2013, and justify your answer. Explain clearly the 2013 tax consequences for each.
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