George and Gina Anderson,(Canadian citizens),moved to Europe on August 15^th,20X1 to open a café in a small Italian village.The restaurant was called 'Gina's Italian Eatery Inc.'.Prior to moving,George earned $65,000 in 20X1 as a computer programmer and Susan earned $67,000 in 20X1 as a registered nurse.They are both in their 60s and plan to retire in Italy,which is Gina's birthplace.They were able to sell their home in time to invest the proceeds prior to leaving for Europe.As they only expect to return to Canada every second year,they cancelled their bank accounts and driver's licenses.Their café was successful in 20X1 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 20X1 and discuss the Canadian tax treatment,if any,of their personal and business income.

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The Answer of George and Gina Anderson,(Canadian citizens),moved to Europe on August 15^th,20X1 to open a café in a small Italian village.The restaurant was called 'Gina's Italian Eatery Inc.'.Prior to moving,George earned $65,000 in 20X1 as a computer programmer and Susan earned $67,000 in 20X1 as a registered nurse.They are both in their 60s and plan to retire in Italy,which is Gina's birthplace.They were able to sell their home in time to invest the proceeds prior to leaving for Europe.As they only expect to return to Canada every second year,they cancelled their bank accounts and driver's licenses.Their café was successful in 20X1 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 20X1 and discuss the Canadian tax treatment,if any,of their personal and business income.

George and Gina Anderson,(Canadian Citizens),moved to Europe on August 15th,20X1

George and Gina Anderson,(Canadian Citizens),moved to Europe on August 15^th,20X1