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IEC 2015 Self-employment

IEC 2015 Self-employment

Old May 12th 2015, 7:21 am
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Question IEC 2015 Self-employment

Hello,

I was fortunate to be successful in my application for the IEC 2015 program (UK) and I'm in the process of making arrangements to move over. I've got the option of continuing to work for my employer (based outside of Canada) as a contractor - which I'd really like to do.

I've found lots of anecdotal evidence of people successfully continuing employment with international companies in various circumstances by becoming self-employed (or a sole proprietor, not necessarily having registered a business) via contracts.

I've also identified the option of being employed by a Canadian umbrella company.

I have the following questions, which I'd really appreciate input on:

1) Is it permissible to be self-employed on an IEC-issued open work permit? Can anyone provide links to any official CIC documentation?

2) I understand that being self-employed does not count towards Canadian experience when applying for CEC. Would being employed by a Canadian umbrella company count? Can anyone provide links to any official CIC documentation?

3) Are software engineering / consulting practices performed for a company outside of Canada, typically (but not exclusively) performed for the company's clients outside of Canada classed as HST-exempt export services in Ontario? Can anyone provide links to any official CRA documentation?

Thanks in advance!
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Old May 14th 2015, 10:17 pm
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Default Re: IEC 2015 Self-employment

Failing answers to the above (perhaps these questions are too specific?), can anyone please recommend any resources so I can investigate further myself?

Thanks!
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Old May 14th 2015, 10:45 pm
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Default Re: IEC 2015 Self-employment

Yes you can be self employed on an IEC work permit.

Read this link re Canadian Experience criteria

Determine your eligibility – Canadian Experience Class

Read this link re Ontario HST
Harmonized Sales Tax

Your intentions aren't quite clear hence no replies.
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Old May 15th 2015, 1:26 am
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Default Re: IEC 2015 Self-employment

Thanks for your response. Apologies if my intentions were not clear previously... I want to:

1. Move to Canada for 2 years on IEC
2. Continue working for my existing employer either A) self-employed or B) through an umbrella company - whichever I'm allowed to do and makes the most sense
3. Explore CEC options (for when my IEC visa is over)

Is there anything that explicitly states that you can be self-employed, or is it more the case that it's not explicitly written that you can't be self-employed? CIC just states "...for any employer..." - which technically doesn't exclude myself, I suppose.

I checked the CEC Eligibility link and the key point is:

"Self-employment ... does not count under this program"

This is the basis for one of my previous questions. I understand that you are technically an employee when working through an umbrella company and I wondered if this experience would count.

Thanks for the link RE: HST - I've got lots more reading to do!
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Old May 15th 2015, 2:45 am
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Default Re: IEC 2015 Self-employment

Originally Posted by Former Lancastrian
Your intentions aren't quite clear hence no replies.
...and perhaps the 'provide links to official documentation' which one can easily find with Google for oneself.
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Old May 15th 2015, 3:12 am
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Default Re: IEC 2015 Self-employment

Originally Posted by td2015
Thanks for your response. Apologies if my intentions were not clear previously... I want to:

1. Move to Canada for 2 years on IEC
2. Continue working for my existing employer either A) self-employed or B) through an umbrella company - whichever I'm allowed to do and makes the most sense
3. Explore CEC options (for when my IEC visa is over)

Is there anything that explicitly states that you can be self-employed, or is it more the case that it's not explicitly written that you can't be self-employed? CIC just states "...for any employer..." - which technically doesn't exclude myself, I suppose.

I checked the CEC Eligibility link and the key point is:

"Self-employment ... does not count under this program"

This is the basis for one of my previous questions. I understand that you are technically an employee when working through an umbrella company and I wondered if this experience would count.

Thanks for the link RE: HST - I've got lots more reading to do!
The IEC allows you to work in Canada for a period of 2 years either for a Canadian employer or self employment. To qualify for the CEC PR route you would normally have to be working for a Canadian employer and not be self employed.
Where is this umbrella company located as its not a common term in Canada unlike the UK.
Read this link about other ways to immigrate

Determine your eligibility—Immigrate to Canada
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Old May 15th 2015, 3:22 am
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Default Re: IEC 2015 Self-employment

Hi, once again sorry if my post was unclear or if my questions are presented in a way that's frowned upon... I thought to come here for help based on the wealth of knowledge available and because lot of related content I have found useful has been posted here.

Originally Posted by Aviator
...and perhaps the 'provide links to official documentation' which one can easily find with Google for oneself.
To be fair, I made those requests in addition to my original questions because unfortunately I have not been able to find this info. myself - certainly not for lack of trying. Apologies if it seemed like I was trying to outsource the effort here.

The CEC link above is a good example of one of the many official documents I have found to date (before posting) that does not answer my question. And I'm sure you can appreciate that [i]ideally[/] I would like to arrive at the border with plans based on something concrete, if possible.

Regardless, thanks for reading.
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Old May 15th 2015, 3:29 am
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Default Re: IEC 2015 Self-employment

As FL has asked, where is/would the umbrella company be based?
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Old May 15th 2015, 3:49 am
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Default Re: IEC 2015 Self-employment

[QUOTE=td2015;11644163]1)
Is it permissible to be self-employed on an IEC-issued open work permit? Can anyone provide links to any official CIC documentation?
You can work for whomever you like, including yourself. Unless you need liability protection, I would not go tot he bother of incorporating anything on an IEC, stay as a proprietorship.

2) I understand that being self-employed does not count towards Canadian experience when applying for CEC. Would being employed by a Canadian umbrella company count? Can anyone provide links to any official CIC documentation?
If you are the only shareholder, then no it wouldn't. If it was owned by Canadians or PRs and you are not a shareholder then it most likely would.

3) Are software engineering / consulting practices performed for a company outside of Canada, typically (but not exclusively) performed for the company's clients outside of Canada classed as HST-exempt export services in Ontario? Can anyone provide links to any official CRA documentation?
Any sales or services to a business located overseas and does not have an office in Canada, you would not charge them sales tax. You would however be required to register with CRA to get a business number and for HST/GST if you anticipate sales over $35k, even for exempt sales. The upside is you can reclaim tax paid on business expenses as an ITC. If you are a contractor to a business in the UK, you are instructed by them, bill them and send the product to them, who they sell to is not relevant. If there are clients in Canada and you had no direct contact with them, you should be fine. If in doubt, write to CRA and ask for a ruling, don't rely on a web forum, CRA website or contact centre. You would be best to get a written ruling, that is all that would hold up if challenged, unless you can prove your case with extracts from the tax act, which would be a pain to do. Criminal law is innocent until proven guilty, not with CRA. CRA enforce the tax acts and you have to prove your case, failure to do so results in their ruling standing. The onus is always on the taxpayer and less so on CRA.
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Old May 15th 2015, 5:06 am
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Default Re: IEC 2015 Self-employment

Thanks a lot for the updates, guys - much appreciated.

Thanks, Aviator. Agreed, I'd be looking at sole proprietor. The point about taxing overseas clients is key because I'll likely end up negotiating a day rate and I don't want to be 13% out.

Good point RE: the location of the umbrella company. It sounds like it would need to be in Canada to be of any value in the context of CEC.

CEC is just one of the options I'll be exploring when IEC is over. I think I need to weigh up whether having the CEC experience under my belt just in case I need it is worth paying approx. 5% wages, sacrificing tax breaks for home office/expenses/etc.

Thanks again!
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Old May 15th 2015, 6:45 am
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Default Re: IEC 2015 Self-employment

Originally Posted by td2015
Thanks a lot for the updates, guys - much appreciated.

Thanks, Aviator. Agreed, I'd be looking at sole proprietor. The point about taxing overseas clients is key because I'll likely end up negotiating a day rate and I don't want to be 13% out.

Good point RE: the location of the umbrella company. It sounds like it would need to be in Canada to be of any value in the context of CEC.

CEC is just one of the options I'll be exploring when IEC is over. I think I need to weigh up whether having the CEC experience under my belt just in case I need it is worth paying approx. 5% wages, sacrificing tax breaks for home office/expenses/etc.

Thanks again!
You should get professional advice, because as far as I know, if you are the owner of a Canadian corporation, this is no different to being a proprietorship as far as CEC is concerned.
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Old Sep 7th 2015, 9:06 am
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Default Re: IEC 2015 Self-employment

Thanks for this info - I'm in a very similar situation and wanted to find out how quick/ easy it is to set up being self employed when I arrive? I don't understand a lot of the abreviations used and an finding info online a nightmare to navigate.
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