Is using a CDN webhosting company a residential tie?

Hello

I am a Canadian who has been living in Korea for the past several years. I have gone through all of the steps to become a non-resident of Canada (except for having a Canadian bank account and credit card).

I'm wanting to start my own website about teaching. I purchased a program called "SiteBuildIt!". It basically takes you through all of the steps to build a website business.

I found out that "SiteBuildIt!" and its web hosting company (which is where I would register my domain) are in Canada!

Now, is this a residential tie to Canada? (even though the business is operated in Korea)

Thanks

Generally speaking, purchasing services and/or products from Canada while abroad does not constitute a residential tie. However, CRA can and will use any evidence it can if it deems your situatation worthy to build a case. You probably need to be careful- If you use your bank account/bank card to pay for the service you just might dig yourself in a hole.

Allan Nichols
http://www.thecanadianexpat.com
info@thecanadianexpat.com

If you bank account isn't a problem. Buying a product on a website that happens to be in Canada will not be.

Besides if you are really worried, ask a Korean friend to pay for the site as a gift using his credit card - not your's especially if you card is issued from a Canadian Bank! Of course, you can gift him what it cost in return. It's all very silly!

Canada and Korea have a tax treaty, with a pretty straightforward residency clause (like US). If you live in Korea, and not in canada, you are a Korean tax resident, regardless of how many other minor ties you have in Canada.

Allan's comment about CRA using such minor ties as a means to tie you residentially to canada applies strictly to non-treaty countries, or countries with tax treaty with canada whose tax rules prevent foreign nationals from being considered tax residents.