By Esther Carenza ( February 7, 2023, 1:26 PM EST) -- The main basis for imposing income tax in Canada is residency. Subsection 248(1) Income Tax Act RSC 1985 c. 1 (5 Suppl.) and income tax folio S6-F1-C1 determine the residency of a trust both provincially and federally and is a question of fact determined by circumstances in each case....