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Choose the correct answer. A . Mystic Ltd . was incorporated prior to April 2 7 , 1 9 6 5 , but since directors
Choose the correct answer.
A
Mystic Ltd was incorporated prior to April but since directors meetings were held in Canada until May it is deemed a resident of Canada. Even though the CMC is in the US it does not have US residency. This means that its worldwide income would be subject to tax in Canada.
B
Mystic Ltd was incorporated prior to April but since directors meetings were held in Canada until May it is deemed a resident of Canada. Since the CMC is in the US however, it is also a factual resident of the US Given this dual residency, the CanadaUS tax treaty considers a corporation to be a resident of the country where its CMC resides, so it would only be subject to tax in Canada on Canadian source income.
C
Mystic Ltd was incorporated prior to April and since directors meetings were not held in Canada after May it is not a resident of Canada. So it would only be taxed on Canadian source income.
D
Mystic Ltd was incorporated prior to April but since directors meetings were held in Canada until May it is deemed a resident of Canada. Since the CMC is in the US however, it is also a factual resident of the US Given this dual residency, the CanadaUS tax treaty considers a corporation to be a resident of the country in which it was incorporated, so its worldwide income would be subject to tax in Canada.
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