Mobius1988

Hi all,

I'm just looking for some clarification about this in terms of employment law/taxes. I have an IEC visa for 2 years in Canada which I won't be activating until January. But I'm entering the country as a tourist before then.

My UK company (Recruitment) has asked me to continue to do some special projects for them remotely while I am in Canada. I will only be interacting with UK/European companies as part of this and I will be paid into my UK bank account.

My understanding is that I can do this without any implications in Canada as I wont be considered to be working in Canada according to the definition of work here: Temporary Foreign Worker and International Mobility Programs: What is work?

My questions are these:

1) Initially I will be on a tourist visa - can I remote work on a tourist visa? Do I still have to pay taxes in Canada during this even though I will employed by a UK company?

2) If I am working in Canada but also working in the UK do I just pay Canadian tax on both incomes? Do I inform the Canadian government about my UK income?

Any advice would be much appreciated!

plasticcanuck

There. Is no such thing as a tourist visa, per se. UK residents don’t require a visa to visit Canada. As a tourist it would be the same as someone from UK visiting and getting a phone call from employer with a work type issue to be resolved. I don’t believe you have any issue, income tax or otherwise. You’re overthinking the matter, IMO.
Enjoy your visit.

Steve_

1) Yes, provided it has no impact on the Canadian economy, but after 183 days you become resident in Canada for tax purposes regardless.

2) You're physically doing the work in Canada so effectively the work in the UK would be as a self-employed person in Canada. Which means you have to invoice them and file a T2125, T1 schedule 8 and register for GST etc.

Starting a business : British Expat Wiki

Enjoy.

Aviator

You register for GST if your expected income exceeds the threshold. However you would not charge GST to an overseas company. You can however claim ITC for any GST paid for business purposes.

As for being a tax resident, you could still be considered a tax resident as a visitor.

However is you are an employee of the UK company, on payroll and don't establish any ties in Canada, you may not have to register for GST, or report income in Canada until you activate the IEC. After that time you would need to report you world income on a tax return at the end of the calendar year.

https://www.canada.ca/en/revenue-age...cy-status.html

Mobius1988

Thanks for the tips so far....

So from that I've taken that while I'm on my visitor visa which is going to be for less than 183 days, I will be fine and don't need to do anything.

Once I activate my visa I am a taxable resident of Canada and because I will be working from Canada, even though I won't be interacting financially with Canadian companies, I will need to act as self employed and get the GST and file T2125 with my tax return at the end of the year.

Hopefully I'm with you so far.

But if I'm working for a Canadian company as well as doing some work for my UK company, do I go through the normal tax system for the Canadian company and then just report the extra 'world income' on the same tax forms? So I would be employed for Canada, and self employed for the UK at the same time?

Sorry if I'm not grasping this easily. The Canadian tax system seems overly complicated! Haha

Mobius1988

Another quick question sorry - if I want to interact with Canadian companies to make enquiries about the possibility of my UK employer expanding in to Canada, but without any financial transactions happening, would that be allowed? Would I need to wait until I've activated my Visa to do this?

Former Lancastrian

Yes you can do it and no you don't need to wait until you get the IEC work permit. Any potential problems you may have will be tax related especially when becoming a tax resident for Canadian purposes and still working for a UK company.
As we all know the tax man takes no prisoners if they believe there is some suggestion of tax avoidance. This is a Canadian tax link for CRA
https://www.canada.ca/en/services/taxes/income-tax.html

Aviator

Not necessarily so. Read the link I provided, it depends on ties to Canada. Also speak to an accountant when you get here. Best not to fall afoul of CRA on day 1.


Most likley. If you are an employee in Canada you would be on payroll here and report your other income as self employed, unless you you are an employee to the UK company.

Tax year here is a calendar year. Tax filing deadline is April 30, if you have self employment income it is June 30. However any tax due attracts interest after April 30.

Mobius1988

Thanks again for the advice! I will contact the CRA and an accountant to ask for further advice when I arrive to make sure I don't do anything incorrectly!