He didn't list his address anywhere.
He was a normal US resident working on H1b.. when his extension got denied, he wanted to continue working from India getting paid in USD until a fresh extension petition is refiled and get approved. But HR refused that arrangement citing local employer tax obligations and wanted him to go on loss of pay. They froze his payroll and only then he left to India.
FWIW, the company also huge offshore presence in India.. but they don't have policy to transfer between US and India.. if he wants to join Indian location, he should resign and then join Indian branch for a different job req. So it doesn't matter if the company operates in that region or not.
I guess, when the time comes for an extension, then make sure that you are in US until the petition is approved (which should be ok under premium processing).
But I am bit confused. He was on H1B working from India? Did USCIS denied his extension citing tax issues in India or was it HR? It seems like HR suggested that? Why was his H1B extension denied then?
I mean if your H1B is denied.. Then your relationship with your employer is altered. That's a different issue.
The question is would your future H1B extension be denied if you are currently working out of US on H1B.
After chatting with a lot of immigration lawyers.
1) No. Canadian Residency does not increases or decreases risk of your approval.
2) You are not on H1B outside US.
3) You can leave US while your extension is being filed (this is different from if you are changing company). If you are changing a company and leave US, then that petition is considered abandoned if the applicant travel out of US (so dont travel out of US while changing job, no issues if you are filing for an extension).
3) Be cautious with taxes. Hire a competent account and let them deal with this.