Hi xxxxx
Please find an overview of my findings regarding working for you remotely in Canada without a work permit.

The short answer is that working remotely does not count as "work" by the government of Canada and thus could be done without a work permit, and that at least for the next 12 months I would still be a UK tax resident and pay all UK taxes.


Detailed overview and assesment
I will detail fully information below which shows that working remotely for you would be considered "long distance (by telephone or Internet)" and is not considered as "work" by Canada's regulations as long as it does not "compete directly". The expected work would not compete as it could not be a job fulfilled by any other Canadian Resident nor would it be considered competitive in the marketplace. I would be liable to pay UK taxes for the duration of the contract with [UK-Company] even after I got a work permit, in Canada I would be considered a "non-resident for tax purposes". This would be reviewed and potentially change after I receive my PR (permanent residency) due ~July 2018.

The key information points are:
1. If I am allowed to "work" in Canada
2. Does working remotely for [UK-Company] count as work
3. What is my tax residency status
4. Where I should pay tax


Point 1. If I am allowed to "work" in Canada
The short answer is no I am not allowed to do anything Canada would consider "Work" until my work permit arrives. However as point 2 will detail, "long distance" work is not classified as "Work" by the Government of Canada and so I could start working for you even without my work permit.


Point 2. Does working remotely for [UK-Company] count as work
This is the critical point. as speculated in the "Temporary Foreign Worker and International Mobility Programs: What is work?" document below clearly shows that this activity would not be considered work by the Government of Canada.

Temporary Foreign Worker and International Mobility Programs: What is work?

Under the section "What kind of activities are not considered to be “work”?" it states that:

• An activity which does not really 'take away' from opportunities for Canadians or permanent residents to gain employment or experience in the workplace is not “work” for the purposes of the definition.

It then goes on to give a specific example of what would not be considered work as:

• long distance (by telephone or Internet) work done by a temporary resident whose employer is outside Canada and who is remunerated from outside Canada

Additionally the "activity" (work) would also not be considered as "competes directly" which would

• Will they be doing an activity that a Canadian or permanent resident should really have an opportunity to do? [NO]
• Will they be engaging in a business activity that is competitive in the marketplace? [NO]

Therefore I could commence this contract immediately without having to wait for the work permit as far as the Government of Canada is concerned.


Point 3: What is my tax residency status
Before I get my PR (Permanent Residency) status in Canada (Expected July 2018):
UK Status = UK-Resident for tax purposes
Canada Status = Non-Resident for tax purposes

After I get my PR this would be reviewed, at this point I would file the HMRC form "United Kingdom/Canada Double Taxation Convention (SI 1980 Number 709 and Protocols)" to remove my UK residency tax purpose and as I would no longer be a tax residency in the UK would no longer be deemed "Non-Resident" in Canada.
After I get my PR (Permanent Residency) status in Canada (Expected July 2018):
UK Status = Non-Resident
Canada Status = Resident

I have attached the following proof and informational links:
* HMRC Tax Residence Indicator = See "SRT - XXXXXX.pdf" (source: HM Revenue & Customs: Service unavailable )
* CRA (Canada Revenue Agency) residency status = Determining your residency status
* Note from "Deemed Residency = "If you are a deemed resident of Canada, and also establish residential ties in a country with which Canada has a tax treaty and you are considered to be a resident of that country for the purposes of that tax treaty, you may be considered a deemed non-resident of Canada for tax purposes." Deemed residents
* Tax requirements for Non-resident of Canada = Non-residents of Canada


Point 4: Where I should pay tax
For the income I receive from [UK-Company] (along with any other UK income) in £ to my UK bank account. I would file this with HMRC self assessment.
For any income I may receive from Canada, I would file this with the CRA (Canada Revenue Agency).
This would stay this way until I became a resident with Canada AND filed "United Kingdom/Canada Double Taxation Convention (SI 1980 Number 709 and Protocols)"


The attached file "SRT - XXXXXX.pdf" is a result from HMRC showing I would be considered a tax resident of UK.