ACCT2028 Tax Communication Memo Assignment Spring 2020 Mr. Fred Flintstone works at Slate Rock and Gravel Company in White Rock, British Columbia. In early 2020, Fred was offered an opportunity to oversee the construction of a new processing facility in Little Rock, Arkansas, USA. If Mr. Flintstone takes the position, he would move to Little Rock on June 1, 2020 and would remain after construction was complete as the senior vice president in charge of the Little Rock processing facility. Mr. Flintstone and his wife have 2 school age children who are enrolled at the local elementary school in grades 5 and 7. The children would like to stay in White Rock for the summer to enjoy their favourite summer camp before moving to the USA. Mrs. Flintstone has looked into applying for a transfer to Arkansas with her company and they are flexible. She would be able to stay with the children for the summer if they decided to wait to join Mr. Flintstone at the beginning of the new school year in late August of 2020. The Flintstones own a home in White Rock and are involved in their community. They are open to selling their home or they would consider keeping it as a rental property after the move. They have a membership at the local YMCA. The Flintstone Family is considering the offer to move and is looking for advice on how their Canadian residency for tax purposes would be affected in 2020. Mr. Flintstone has been told by the American payroll department that tax rates in the United States are significantly lower than in Canada.

Required: Write a short (one page) memo explaining the tax policy regarding Canadian residency for tax purposes to your client. Be sure to consider the following:

The rules regarding residency for tax purposes and what factors would be key to this situation.

You can make recommendations to the Flintstone family if you think they need to change their plans to improve their tax situation.

Your client will have limited understanding of income taxation, so you need to analyze the issue at a high level and then clearly describe the options available.