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I have a doubt in canadian tax residency rules. I am a new immigrant of canada from India through the PR route. As per my country's taxation laws - i am a resident. But as per canadian tax laws also - i am a resident effective from the date when I land. And canada has a tax treaty with india specifying tie breaker clauses for residency. So, if in both countries I am a resident ,will the tax treaty supercede the canadian tax rules? And if it is determined as per the tie breaker that I am a tax resident of India, Can I consider myself to be a non resident of canada, till end of India's financial year? Is my understanding correct?
The tie-breaker rules contained in the tax-treaty in respect of determining where a person is a tax resident (i.e. India or Canada) supersede both Indian and Candian tax legislation. Therefore, after applying the tie-breaker rules, if it is determined that you are a resident of India, then that is what you must follow for both countries.