George and Gina Anderson, (Canadian Citizens), Moved to Europe on August

question 1

Essay

George and Gina Anderson, (Canadian citizens), moved to Europe on August 15^th, 2020 to open and incorporate a café in a small Italian village.Prior to moving, George earned $65,000 in 2020 as a computer programmer and Gina earned $67,000 in 2020 as a registered nurse.(The couple did not have any other income besides their salaries prior to moving.)
They are both in their 60s and plan to retire in Italy, which is Gina's birthplace.They sold their home prior to moving to Europe.As the couple only expects to return to Canada every second year, they cancelled their bank accounts and driving licenses.Their café was successful in 2020 and earned a pre-tax profit of $25,000 by year's end.
Required:
Determine the residency status of George and Gina and their café for Canadian tax purposes in 2020 and discuss the Canadian tax treatment, if any, of their personal and business income.(Assume there were no assets with realizable gains upon their move.)

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Definitions:

Opponent-process Theory

A psychological and neurological model that explains a wide range of behaviors, including color vision and emotions, by proposing that elements are usually paired and oppose each other.

Negative Afterimages

Visual illusions that occur after looking at a brightly lit stimulus, resulting in seeing a reversed color (negative) image when the eyes focus on a neutral background.

Trichromatic Theory

A theory of color vision proposing that the human eye has three types of receptors with differing sensitivities to different light wavelengths, corresponding to red, green, and blue colors.

Retinex Theory

A theory stating that the color of an object is determined by its reflectance properties in a viewing context, explaining color consistency under different lighting.