Jing has come to you for advice on a potential job transfer to Mumbai, India. She is currently working for a large corporation located in Halifax. It is October and her manager has asked Jing to move to Mumbai for at least 2 years. Her assignment may extend longer, but that will depend on how the project progresses.

Jing is married to Rupert and they have two daughters, Alexis age 4 and Julia age 9. The company wants Jing to be working in Mumbai for November 15^th. She is planning to depart by November 1^st in order to find an appropriate rental home and get to know the area. Rupert is a professor and will take a leave of absence starting December 1st for 2 years to accompany Jing to Mumbai. They want Julia to finish her term at school, and Rupert would travel with the girls to India on December 15^th.

Rupert enjoys antique cars, and has recently obtained an exclusive membership to the Halifax Car Club, he has been waiting for the invitation for many years, and will maintain his membership even if they make the move to India. They also own a home in the South end of Halifax and would hate to part with it, so they may consider renting it to Jing’s sister who is attending university nearby.

After much deliberation, Jing and Rupert are excited about the challenge and adventure of a move to Mumbai. They have come to you for tax advice on the implications their move would have. They have read it is better to be a non-resident of Canada but would like your opinion and advice, if applicable if this is true. Is it better to be a non-resident? What are the tax consequences if they stay residents? How would they become non-residents?