Posted on: 05-10-04 09:28:11
Quote:
Orginally posted by infocan
skalra73,
Better clarify it , but I guess ur company will not pay ur salary for the time u r in canada. At least this is what happen in mine company. As Canada autorites always insist to have people thier on work permit even for short duration. The PER DM paid happen only in US case when going on B1 visa. In case going on H1 or L1 no salary is paid in india.
Infocan, if you read the original post clearly it will explain you everything - he is saying that he will be paid in India a regular salary and a stipend in Canada.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Orginally posted by skalra73
Hi, I have got my PR approved and will be landing in Canada two months for now (Nov-Dec). My company here in bangalore does not have an office in Canada but has a client in Montreal and has agreed to post me there. They will be paying me a salary in India and a USD stipend in Canada which will not be very substantial. I need to know how to manage my taxes. Also can I work for a company on PR status which does not have local presence in Canada and does not pay me salary in Canadian dollars ? Is it legal ? Also how do I pay for my health insurance in this case. Please do also let me know if I am missing out something here...Thanks a ton
I would suggest you actually need a professinal consultation with a lawyer/accountant to ensure that the whole thing is legitimate and also what other implications it might have on your daily life in Canada - credit cards, buying houses, child tax benefits to name a few. Let's take mortgage as an example - to get a mortgage for lenders looks to see if you're employed in Canada but technically you're not employed by a Canadian company.
In a nutshell get a proper consultation from a professional and then take a view. Otherwise, you and your employer/client would be in legal problems with Canadian Customs and Revenue Agency it they get interested.
Daks
Hi Guys,
Thanks a ton for your advice. I was travelling and did not have acces to internet so could not reply.
Chandresh has understood the situation in its entirity. Thaks a lot Chandresh for your inputs. Will look forward to hearing from you about health insurance part of it.
Infocan, I told the truth to my employers, and probably because they avoided the trouble of processing somebody else's visa they are sending me to Canada.
Daks' point about legal trouble has got me worried....friends can u let me know about some professional who can help me out on this.....
Again, thanks a ton to everybody who has repiled to this post...looking forward to hearing more from you guys and contributing in this forum...
Sumesh
Quote:
Orginally posted by skalra73
Daks' point about legal trouble has got me worried....friends can u let me know about some professional who can help me out on this.....
Sumesh
Daks is a professional and I do give regards to his thoughts on this matter. However, I am more than sure that you will not have any problems if you are a landed immigrant. I am sure there are a lot of local Canadians/landed immigrants who work from home for foreign companies which have no presence in Canada. Whether the salary is received here in Canada or in India, is not a question - the only question is that you report that income to tax authorities of Canada since you will be a tax resident in Canada.
I have personally employed persons on such terms (though not in Canada) and have friends who were employed in such manner (Telco guys posted for specific project, with salary payable in India and an allowance in the country they are posted, without Telco having their own office/presence).
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Orginally posted by chandresh
Daks is a professional and I do give regards to his thoughts on this matter. However, I am more than sure that you will not have any problems if you are a landed immigrant. I am sure there are a lot of local Canadians/landed immigrants who work from home for foreign companies which have no presence in Canada. Whether the salary is received here in Canada or in India, is not a question - the only question is that you report that income to tax authorities of Canada since you will be a tax resident in Canada.
I have personally employed persons on such terms (though not in Canada) and have friends who were employed in such manner (Telco guys posted for specific project, with salary payable in India and an allowance in the country they are posted, without Telco having their own office/presence).
Chandresh
However, the income earned by the Skalra’s employer from providing a service in Canada, should constitute income for the purposes of Canadian income tax.
By his actions, Skalra would be a ‘representative’ of the employer here in Canada, therefore could potentially have an obligation to ensure the tax compliance by his employer? Professional advice is probably warranted.
Quote:
Orginally posted by crenshaw
However, the income earned by the Skalra’s employer from providing a service in Canada, should constitute income for the purposes of Canadian income tax.
quote]
Obviously - and it will be an income 'deemed to be received in Canada'. However, if the income is already taxed in India, which it obviously will be, double taxation treaty rules will apply and benefits accorded accordindly.
All one needs to know is what shall be the benefit of doule taxation treaty. Infact, a question can be asked to CCRA by giving them actual (or hypothetical) numbers, in writing, and they will send a reply giving exact calculations.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Orginally posted by chandresh
Quote:
Orginally posted by crenshaw
However, the income earned by the Skalra’s employer from providing a service in Canada, should constitute income for the purposes of Canadian income tax.
quote]
Obviously - and it will be an income 'deemed to be received in Canada'. However, if the income is already taxed in India, which it obviously will be, double taxation treaty rules will apply and benefits accorded accordindly.
All one needs to know is what shall be the benefit of doule taxation treaty. Infact, a question can be asked to CCRA by giving them actual (or hypothetical) numbers, in writing, and they will send a reply giving exact calculations.
Chandresh
I think crenshaw is right ie., skalra would be deemed to be a representative of his Indian company having an office in Canada. Therefore, his Indian company may be required to file a tax return in Canada although no taxes may be payable- that's the reason why I was suggesting a professional consultation.
Sumesh - I think you said if not you somebody would be coming and your employer is saving on visa expenses. Your employer has the primary obligation to ensure that they are in comply with Canadian tax and business laws. I think you should ask them to fork out the money for the consultation. If you're in B'lore you may go to any of the Big 4 firms which have a tax practice. And, don't worry - your case is not uncommon. During my stay with Big 4 accounting firms these kind of questions always kept coming up from clients and so nothing unusual about your case. The reason I said have a professional consultation done is because tax laws are tricky and I am no expert in this. In the long run it works to your advantage if you do things by the book - reacting to a problem when it arises is very poor planning and can cause needless inconveneince.
Daks
