How to fill "STATEMENT OF RESIDENCY" in NR73 ?

I am Canadian citizen. I have been working in USA since 2000, and back-forth Canada regularly because my family is in Canada. I filed the tax return in 2007 tax year because I also worked for a Canada company. In 2008 and 2009 tax years I did not file tax return because we called the CRA office and the officer said I don’t have to file tax return to Canada. In 2010 tax year, I filed tax return and submit some tax to CRA after subtracting tax to USA. But the CRA replied say: I was “non-resident” in 2010 tax year and have to pay more tax to CRA. I indicated my family is in Canada all the year and I should be “Factual Resident”. They, then, asked me filling a NR74 and NR73 to determine my residency.

How to fill the “STATEMENT OF RESIDENT” in NR73:
“Are you, under a tax treaty with another country, considered resident in the other country and not resident in Canada?” Yes / No
“Are you subject to income tax in that country on your world income? (total income from inside and outside Canada)” Yes / No

(Note I filed tax return in USA as resident.)

Thank you in advance.

While you chose to file a resident tax return in US, that does not in itself mean that you are a US tax resident, either in fact or by treaty.

Form whay you describe, you are a factual resident of canada, and should be reporting world income to canada. What this means though is that only the tax atributible to your US job is eligible for tax credit considereation in Canada. You may have claimed too much creit on your Cdn return.

However, if Canada is satisfied that you are deemed non-resident of canad (by treaty definition), then you shoudl only be reporting CDm income in Canada.

Follow up on this with me at forums.serbinski.com

Thank you for your reply.
Should I chose “No” for the first and “Yes” for the second?
“Are you, under a tax treaty with another country, considered resident in the other country and not resident in Canada?” Yes / No
“Are you subject to income tax in that country on your world income? (total income from inside and outside Canada)” Yes / No