Ms. Norah Houston is employed by a large, publicly-traded Canadian company. She is a Canadian citizen and, for all of her life, she has been living and working in Canada. She does not have a spouse, common-law partner, or dependent's. During 2020, her employer asks her if she would be willing to transfer to their Australian operation. As she believes that she will have more challenging work in that location, she agrees to the move. Both Ms. Houston and the company expect this move to be permanent.

On July 31, 2020 she closes all of her Canadian bank accounts. This includes a savings account on which she has received interest of $3,500 during 2020 prior to her departure.

On August 1, 2020, she opens bank accounts in Sydney. Interest on her Australian savings account during the rest of 2020 was earned at a rate of $500 per month. (All amounts given in this problem are in Canadian dollars.)

On August 1, 2020 she departs from Canada. However, because she has taken no time off in several years, she spends the month of August visiting various cities in southeast Asia. She arrives in Australia and establishes residence in Sydney on September 1, 2020.

Ms. Houston's annual salary for 2020 is $144,000, with monthly payments of $12,000. Because she had accumulated vacation credits, her payments were not altered by the time she spent traveling in August.

Ms. Houston lived in a rented condominium and was able to cancel the lease prior to her departure on August 1, 2020. No cancellation payment was required.

At the beginning of 2020, Ms. Houston owned shares in three Canadian public companies. All of these shares were sold prior to her departure, resulting in the following capital gains and losses:

• The sale of Cando Ltd. resulted in a capital gain of $27,300.

• The sale of Darcy Inc. resulted in a capital loss of $14,500.

• The sale of Marganto Ltd. resulted in a capital loss of $6,800.

Prior to her departure, Ms. Houston was operating a mail order business out of her condominium. On July 31, 2020, she closes down this business. For the period January 1 through July 31, 2020, the business had a loss of $27,000.

During 2020, Ms. Houston made support payments to her former spouse of $2,000 on the first day of each month until his death in a mysterious boating accident on August 28, 2020. She made a deductible contribution to her Canadian RRSP in the amount of $8,800 on May 1, 2020. The RRSP was not collapsed on Ms. Houston's departure from Canada.

Required:

A. Determine Ms. Houston's residency status for 2020 and explain your conclusion.

B. Calculate Ms. Houston's Net Income For Tax Purposes that will be included in her 2020 Canadian tax return.