DigitalGhost

Hypothetical question, basically if someone were to reside in Canada but work freelance for employers based in another country and be paid in that other country are there any legal barriers to this in terms of immigration and tax?

Would a work permit be needed and would any earnings need to be declared on a Canadian tax return?

Novocastrian

Yes and yes. You can't work in Canada and reside here without a work visa.

Souvy (a PR or perhaps citizen by now) who is employed by a UK entity can amplify.

JonboyE

AFAIK, you should confirm this but I don't contradict Novo lightly, you can be in Canada on a visitor's visa and work remotely for a foreign employer as long as you are not taking a job that a Canadian Citizen/PR would otherwise have. Of course, you would have to leave when your visitor's visa expires.

For tax you are probably OK if you stay in Canada for less than six months in any calendar year. If you stay longer, and you cannot demonstrate that you are tax resident in a treaty county, you could be deemed resident for tax purposes and your whole income for the year becomes taxable in Canada.

Novocastrian

. It's the other way around mate. But I didn't get the impression that the OP was interested in a short term arrangement.

DigitalGhost

Thanks guys, it's not actually for me as such, it's for my gf. Her WP expires before mine but she would be accompanying me and then potentially working remotely for some employers based in Asia.

I thought that it would probably be OK but I just wanted to check to make sure that we wouldn't be doing anything dodgy.

Greenhill

I'd say ask CIC directly but I did post a note regarding some professional advice I'd received on this matter a while ago (which wasn't/hasn't been contested): http://britishexpats.com/forum/showthread.php?p=8378016

DigitalGhost

Thanks. Going from your information there it sounds like it should be fine. I think the indication so far is that she would employed mostly by Japanese firms and paid in Yen to a foreign bank account.

JonboyE

This might be more of a problem for tax.

I understand from your previous posts that you were together in the UK for some time before coming to Canada and live as common law spouses. Do you know what her tax status was in the UK? Presumably she is no longer tax resident in Japan.

A WHV holder is taxed in Canada as a resident for the duration of the visa. Once the visa is over they return to their country and become tax-resident there. The problem if your OH does not return to the UK (or Japan) to re-establish her tax-residency there she will be deemed as tax-resident in Canada if she exceeds 183 in Canada days in a Calendar year.

Souvy

Oi!

It's been nearly six years since I swore at a judge.

Novocastrian

Ah yes, memory like a geriatric elephant I have.

Souvy

Coupled with the shit teeth, I don't think your missus needs to worry too much about your running off with your secretary.

More importantly, how pleased are you that Winnipeg will shortly have a NHL iced hockey team? I'm sure you've been following this story.

dbd33

Don't they have one already? I think they're called the Jets.

Souvy

That was 15 years ago. The NHL franchise got sold south of the border.

Quite a few of the more southern US franchises are struggling. This will not be the only sale, I reckon. Quebec City really, really, really wants a team again. Thompson (who has ponied up for the Winnipeg deal) will be watching closely. If Winnipeg can get bums on seats, Quebec City is a no-brainer.

Steve_P

Eh? Memory what's that?

DigitalGhost

When she left Japan she was still a teenager but she removed herself from the ward register just before departure, a legal requirement for anybody leaving Japan for more than six months. It's kind of an alien concept for westerners but basically that means that she isn't liable for any kind of tax in Japan but at the same time isn't entitled to use their Medicare system as well as being ineligible for any benefits, like what happens when we leave the UK for a longer period of time. Whenever we have travelled there since she left she actually just uses UK travel insurance now like I do.

In the UK she was just a student until a few months before we left when she was granted temporary leave to remain as a common law partner with full working rights but no public funds recourse. She was paying income tax there whilst working but never claimed or received anything back in return other than NHS entitlement.