Re: live in Canada work in UK???
 

Very probably, but it seldom works that way.

Re: live in Canada work in UK???
 

I am interested in this as my boss and I are kicking the idea around of me still working for him but from our new home in Canada. We do have a sister company in Bedford which would be down the road, but essentially I would still be working for a UK finance manager in a UK job. Logistically not sure if it would work yet but the idea is being considered and is of course at that stage where its only an idea, so the details havent even been discussed, ie If I would stay on a pounds salary, who would pay me - UK or Bedford etc etc

Re: live in Canada work in UK???
 

If your "partner" and your residence are in Canada, you are resident for tax purposes in Canada. I know what it says in that CIC guidance but basically it's pretty hard to do this, when they say telephone or internet they mean incidental work.

The UK company would either have to have a Canadian payroll account, which is a lot of hassle for a one-off employee so they probably won't do it, or you have to start up your own CCPC or register as self-employed, i.e. get your own business number, at which point you don't work in the way the CIC describes in their guidance (i.e. "temporary").

The idea behind that guidance is you can do some work over a VPN or answer a question someone poses you from the office, there's some caselaw on it from way back when because of situations where people were on holiday and someone phoned from the office. Like it says: "temporary resident". Your intention is not to be in Canada temporarily. There is a provision in the tax treaty about the amount of remuneration you would receive while abroad that the CRA won't consider to be part of your income as well, can't remember the limit but it's pretty low. What they're on about is people who go on holiday and do a bit of work while they're away. That's not your situation. He needs work authorization.

Re: live in Canada work in UK???
 

I don't know how I missed this!

You are tax resident in the country where your home and family are. This is usually obvious. When it isn't then it is a matter of looking at the facts of each case. Hence it is called factual residency.

In addition to factual residency there is something called deemed residency. E.g someone in the Canadian military may be posted overseas for several years and may live with their family in a foreign country. However, they are deemed residents of Canada for tax purposes throughout this time.

If a visitor to Canada stays more than 183 nights in the country in any one year they can be deemed residents for tax purposes even if they are not factual residents.

A resident is taxed on their world-wide income. A non-resident is only taxed on their Canadian sourced income.

There is a tax treaty between the UK and Canada. However, the ability to deduct foreign tax paid from Canadian tax otherwise owing is a provision of the Income Tax Act in Canada - not the tax treaty. The tax treaty establishes:

* How to determine a person's residency for tax purposes
* Which country is entitled to tax income sourced in the other
* Lower non-resident withholding tax rates for some types of income.

One thing to note is that you cannot be tax resident in both countries at the same time. So, even if a Brit has a home and family in Canada they will be deemed a non-resident for tax purposes if they remain tax resident in Britain. For example, a British diplomat may be posted to the High commission in Ottawa for several years. As they are deemed tax residents of the UK under British law they will consequently be deemed as non-residents in Canada.

In the OP's case they need to work out if they are tax resident in Canada or the UK, or meet the criteria for both.

For Canada look at http://www.cra-arc.gc.ca/tx/nnrsdnts...sdncy-eng.html. For the UK http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm

The tax treaty http://www.fin.gc.ca/treaties-conventions/UK_-eng.asp

Article 4
Fiscal Domicile

1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that Contracting State in respect only of income from sources therein.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests);

(b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;

(c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;

(d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

Re: live in Canada work in UK???
 

I thought that you have to declare worldwide income, but that the OP, if taxed in UK will not be taxed in Canada. As he does not have a SIN card or work permit, just as a visitor, he would not be eligible for tax in Canada in any case. That is my understanding of it.
Hope this helps
StefQUOTE=Alan2005;8969607]There might be some tax implications which the OP should find out first. They might be allowed to work without a work permit, but I'm sure they aren't allowed to work without paying tax;)[/QUOTE]

Re: live in Canada work in UK???
 

If they are tax resident, they need to fill in a return. See JonboyE's answer above for how they decide this. I doubt that not having a SIN card allows you to pretend to not exist in the eyes of the canadian tax people.

Re: live in Canada work in UK???
 

But without a SIN card and having a visa to work here legally...OP cannot be tax resident. OP is only on a visitors Visa and you are not eligible to work, therefore have no status in Canada.
Stef

Re: live in Canada work in UK???
 

Remember that the determination of residency for tax purposes can be completely different to that for immigration or work purposes.

A visitor to Canada can be deemed a tax resident if they stay in Canada more than 183 days in any one year. Their worldwide income for the whole year then becomes taxable in Canada. A SIN is not relevant for this. You don't need a SIN to be tax resident in Canada. The CRA will set you up with a nice Individual Taxpayer Number instead.

For a visitor who has overstayed the 183 days they will have to demonstrate that they are tax resident in a treaty country or they will have to pay up.

Re: live in Canada work in UK???
 

Yes I know...but also there is a double tax indemnity treaty or some such with Canada so a person would only pay taxes to one country not both. So if taxes are paid properly in UK they will not be collected in Canada too.
Stef

Re: live in Canada work in UK???
 

That doesn't necessarily mean that no tax would be payable.

Re: live in Canada work in UK???
 

Reading this with interest.

My employer have asked me to continue working for them after we move to Vancouver permanently and will be paying me in £'s. So as far as they're concerned it's business as usual only i have a different view from my office window.

This will be for around 5 months or so until the end of my contract.

So after paying tax in the UK, and completing my Canadian tax form including worldwide income, i could still be liable for bit of tax in Canada as well?

Looks like i'll be hiring an accountant fairly soon :o

Re: live in Canada work in UK???
 

I am in the same situation, I am a PR about to be living in Van and my ex UK employer have asked me to do some work for them as a contractor (so I will be self employed). So I will be responsible for my own tax return. I am thinking I will have to declare in the UK and Canada.

Re: live in Canada work in UK???
 

Yes
You have to declare worldwide income, but you should not be taxed in two places when there is an agreement between Canada and UK. You will just need to prove tax paid and where...which will be on all your invoices to the company probably ...being self employed, I suppose you need to see where you would get the better deal paying your taxes? An accountant would be useful in your case no doubt.
Good luck with your move over
Stef

Re: live in Canada work in UK???
 

This is not correct. Once you become tax resident in Canada you are taxable on your world wide income. You get a credit for income tax already paid on the income (and as I said above, this credit is in the Income Tax Act and not the tax treaty). If the taxes due in Canada on this income exceed to tax deducted in the UK you have to pay the difference in Canada. Paying tax properly in the UK doesn't get you out of this.

You could be liable for a bit more. You should be OK for 2010 as the calculation starts from the day you move here. Your marginal rate in Canada will be low - less than your UK marginal rate. The top marginal rate in BC is 43.7% and that is for income over (approx) £80,000. You could have some exposure in 2011.

[edit: I'm not sure of your working arrangements in the UK. If you are an employee then no problem. If you are a contractor there could also be a timing exposure. The foreign tax credit is on tax paid, not tax payable.]


Of course, it is always a good idea to see an accountant. :) You have to pay tax in each country according to the laws of that country - you don't get a choice. Where the laws conflict the tax treaty sets out which country has the right to tax various sources of income. Of course, you are correct that you don't pay tax twice but you end up paying at the rate of whichever country has the highest rate for that income.

Re: live in Canada work in UK???
 

Wonderful, thanks JonboyE. Very much appreciated.

How busy are you early 2011? ;)