CRA Update Regarding Residency Documentation for Film and Media Tax Credits



The Canada Revenue Agency (“CRA”) has published new guidelines regarding the documents it deems acceptable to satisfy proof-of-residency requirements in order for a production to qualify for film and media tax credits. The CRA administers film and media tax credits on behalf of the federal government and the governments of Ontario, Manitoba and British Columbia.
 
Specifically, the Guidelines provide that residency may be established by providing a copy of:
 

  1. One of:

    1. A Notice of Assessment (T1) indicating that the individual is a Resident of Canada/the applicable province for the relevant tax year;

    2. A Letter from the CRA giving an opinion of the individual’s resident status for the relevant years, after the individual has completed a Determination of Residency Status form; or

    3. A long-term (one year or greater) lease or proof of purchase of a Canadian dwelling with a utility bill or cellphone bill showing the individual lives at the applicable Canadian address; or

  2. Three of:

    1. The last tax return filed in the country of origin and/or any document filed with the foreign tax authority in which the individual has declared that they are no longer a resident;

    2. A short-term (less than a year) lease agreement or letter from a landlord supporting a rental agreement;

    3. A provincial health card* and/or services card for the individual, their spouse and/or dependent (*not applicable in Ontario);

    4. A driver’s license or vehicle registration from the relevant province (counts as 2 of the 3);

    5. Document(s) supporting professional association or union membership in Canada; or

    6. Statements of accounts (for example: bank accounts, retirement savings plan, credit cards, securities accounts) from a Canadian branch of a financial institution.

 
A copy of the Guidelines can be found here
 
In Ontario: Ontario residents are individuals who were resident in Ontario for tax purposes at the end of the calendar year prior to commencement of principal photography. More information can be found here.
 
In British Columbia: British Columbia residents are individuals who were resident in British Columbia as of December 31 of the year preceding the fiscal year for which the tax credit is being claimed. More information can be found here.
 
In Manitoba: Manitoba residents are individuals who were resident in Manitoba on December 31 of the year of production or of the year prior to production. More information can be found here.
 
These Guidelines should be reviewed to ensure that the documents being requested and produced are sufficient to establish residency. Documentation required to prove residency in provinces other than Ontario, Manitoba and British Columbia may differ from what is outlined in the Guidelines.