Taxation in Canada is predicated on residency status. Once an individual establishes residency in Canada, they become obligated to pay taxes and submit tax returns. The determination of whether a taxpayer is a resident considers both primary and secondary residential ties.

Primary residential ties encompass having a place of residence, a spouse or common-law partner, or dependents in Canada. Secondary residential ties include personal assets, social affiliations such as club memberships, and economic connections such as employment or business involvement in Canada, as well as maintaining registered accounts like TFSA (Tax-Free Savings Account) or RRSP (Registered Retirement Savings Plan).

Generally, the following groups of individuals are expected to fulfill tax filing obligations:

• Canadian residents
• Immigrants to Canada (newcomers)
• Canadian residents temporarily absent for work or education
• Non-residents earning income in Canada
• International students
• Legal representatives of deceased individuals