Principal residence is determined by the time and personal connection

Principal residence is determined by the time and personal connection

The B.C. Supreme Court ruled that a Calgary executive who owned a large home in British Columbia had his "principal place of residence" in B.C.

The individual in question, who was identified as a wealthy CEO of an international energy company, maintained a 600 square foot apartment within three blocks of his employer's Calgary headquarters.

However, the majority of his time spent in Canada was in British Columbia, where he and his wife owned a 10,000 square foot home near his parents' residence, and where their social activities were centered.

The judge determined that although the individual was a resident of both B.C. and Alberta, B.C. was his "principal place of residence" according to the tie-breaker rule in Reg. 2607.

Therefore, he was subject to B.C. income tax since he spent more time there and had a closer personal connection with B.C.

The "principal place of residence" is determined based on where the taxpayer spent more time and had a stronger personal connection.

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