Tim Davis, a 23 year old Canadian citizen, decided to travel after his University graduation in the spring of 2018.  Tim 

had a part-time job while he was a full-time student for the period from January to April.  Tim travelled to several Asian 

countries and fell in love  with  the  lifestyle  in  Japan.   He  now  teaches  English at a private school in Japan and also 

moonlights as a private tutor for professionals.  His pay is deposited in an interest bearing bank account in Japan. 

Assume that it is now August of the year and that Tim has come back to Vancouver to visit his mom and sister.  Tim 

comes to visit you to determine his status for income tax purposes.  He tells you that he owns a 2000 Honda, has a golf 

membership, and several Canadian bank accounts (earning him interest income) and an HSBC Bank Canada credit card.  

Tim continues to pay a nominal amount of rent for an apartment that he shares in Vancouver with his sister (his name is 

on the lease, not his sister).  He tells you that he enjoys living in Japan and that he plans to live there for at least two 

years.  Income tax is withheld from his pay stubs in Japan and Tim is sure that he will have to pay income taxes in Japan. 

 He continues to pay monthly provincial health plan premiums in Canada.  

REQUIRED:

i) 

Explain  to  Tim  what  his  tax  status  will  be  for  the  current  year  and  related  tax  consequences  based  on  the 

information provided.   

ii) 

Tim has asked you for suggestions in respect to his tax situation because he does not want to pay tax in both 

Canada and Japan.  Include discussion about what he would need to do to become a non-resident of Canada.