Co-sponsor Income from within Canada

[hrhashmi]

Hi,

My sister (Canadian citizen) has applied for supervisa for my father. However, since she is a home-maker, does not have LICO on her own. Nevertheless, her husband (who also is a Canadian citizen) has co-signed in the letter of invitation and with his income, they are above LICO requirement. But the question is, that my sister's husband is working in Oman and is paying taxes here in Canada.
Will there be a problem in my father getting supervisa, since my sister's husband is earning from outside Canada?
Additionally we have shown:-

• Affidavit for my father's property in India
• Medical insurance purchased covering over CAD 100K - valid for one year.
• Additional income and financial support as an undertaking from me and my younger brother.

Please let me know if this is good enough.

Thanks
hrhashmi

 

[dr_jaat]

Hi,

My sister (Canadian citizen) has applied for supervisa for my father. However, since she is a home-maker, does not have LICO on her own. Nevertheless, her husband (who also is a Canadian citizen) has co-signed in the letter of invitation and with his income, they are above LICO requirement. But the question is, that my sister's husband is working in Oman and is paying taxes here in Canada.
Will there be a problem in my father getting supervisa, since my sister's husband is earning from outside Canada?
Additionally we have shown:-

• Affidavit for my father's property in India
• Medical insurance purchased covering over CAD 100K - valid for one year.
• Additional income and financial support as an undertaking from me and my younger brother.

Please let me know if this is good enough.

Thanks
hrhashmi

You mentioned that income taxes are being paid in Canada. As long as they have notices of assessments from CRA proving LICO criteria you should be fine. I don't see any problem.

Hope it helps

dr_jaat

 

[hrhashmi]

You mentioned that income taxes are being paid in Canada. As long as they have notices of assessments from CRA proving LICO criteria you should be fine. I don't see any problem.

Hope it helps

dr_jaat

This is such a relief.. It was in these forums in which it was mentioned that income has to be from within Canada.

I remember, it was Bryanna's post.

Thanks for your response.

Hammad

 

[dr_jaat]

This is such a relief.. It was in these forums in which it was mentioned that income has to be from within Canada.

I remember, it was Bryanna's post.

Thanks for your response.

Hammad

Bryanna is way more experienced than me. So, she may have helped people in similar situations like you. However, it seems logical to me that if you have notice of assessments from CRA meeting LICO requirements there should not be any problem.

 

[Bryanna]

This is such a relief.. It was in these forums in which it was mentioned that income has to be from within Canada.

I remember, it was Bryanna's post.

Thanks for your response.

Hammad

You have referred to my reply for another OP whose brother does not reside/does not earn an income in Canada. In any case, that OP's brother cannot co-sign the invitation for that OP's parents. Only the spouse/common-law partner can co-sign if LICO is low.

Your situation is a bit complicated. For super visas:
1. The child/grandchild who is inviting the parent/grandparent must be a Canadian citizen/PR residing in Canada..... your sister meets both these requirements, and

2. Her husband i.e. the co-signer is living abroad/earning abroad. As a non-resident Canadian, he pays taxes on income he has received from Canadian sources (dividends, rental, etc). I assume this is his situation, right?

 

[hrhashmi]

You have referred to my reply for another OP whose brother does not reside/does not earn an income in Canada. In any case, that OP's brother cannot co-sign the invitation for that OP's parents. Only the spouse/common-law partner can co-sign if LICO is low.

Your situation is a bit complicated. For super visas:
1. The child/grandchild who is inviting the parent/grandparent must be a Canadian citizen/PR residing in Canada..... your sister meets both these requirements, and

2. Her husband i.e. the co-signer is living abroad/earning abroad. As a non-resident Canadian, he pays taxes on income he has received from Canadian sources (dividends, rental, etc). I assume this is his situation, right?

Thanks for your reply.
With regards to my sister, it is correct that she is Canadian citizen, residing in Canada.
However, her husband, is also a Canadian citizen but earning abroad. He has not declared himself nonresident and is paying taxes on his full income from abroad. He does not have other income (rentals, dividends etc.) from within Canada. Thus, he only has income from his job outside Canada, but is paying taxes on all his income (from abroad).

Although, he has not declared himself nonresident, but his health card has been suspended as his stay in Canada has not fulfilled the minimum required days stay for health card to be valid.

 

[hrhashmi]

Hi Bryanna, was waiting for your comments please.

 

[hrhashmi]

You have referred to my reply for another OP whose brother does not reside/does not earn an income in Canada. In any case, that OP's brother cannot co-sign the invitation for that OP's parents. Only the spouse/common-law partner can co-sign if LICO is low.

Your situation is a bit complicated. For super visas:
1. The child/grandchild who is inviting the parent/grandparent must be a Canadian citizen/PR residing in Canada..... your sister meets both these requirements, and

2. Her husband i.e. the co-signer is living abroad/earning abroad. As a non-resident Canadian, he pays taxes on income he has received from Canadian sources (dividends, rental, etc). I assume this is his situation, right?

Hi Bryanna, was waiting for your comments please.

 

[Bryanna]

Hi Bryanna, was waiting for your comments please.

As your brother-in-law still has his spouse (your sister)/residential ties in Canada, he is considered to be a 'factual resident'. But, as Canada-Oman have a Tax Treaty, he could be considered as a 'deemed non-resident' (to avoid double taxation).

I'm not entirely sure how this situation would work for super visas i.e. child sponsor who is residing in Canada but co-sponsor (and the host who actually has an income/meets LICO), lives abroad. The fact that your brother-in-law pays taxes + meets LICO could help.

Additional income and financial support as an undertaking from me and my younger brother.

You and your brother cannot be co-sponsors if your sister and her husband are inviting your dad for a super visa.

As your sister has already applied for your dad, you'll have to wait for the decision. What is the current status of your dad's application?

 

[Buletruck]

If your sister is living in Canada, her husband will be deemed a resident Canadian for tax purposes.

Always thought LICO had to be earnings from Canadian sources? I've checked and can't find anything that specifically says that.

 

[Bryanna]

If your sister is living in Canada, her husband will be deemed a resident Canadian for tax purposes.

Always thought LICO had to be earnings from Canadian sources? I've checked and can't find anything that specifically says that.

About 'income from Canadian sources', it's coming from here (although it's LICO for PGP sponsorship). Do check the 'Minimum necessary income' section:
http://www.cic.gc.ca/english/information/applications/guides/5482Eguide.asp

In this case, her husband could be considered as a 'deemed non-resident' due to the Canada-Oman Tax treaty

 

[Buletruck]

Actually, the tax treaty doesn't change whether you are deemed resident or non resident for tax purposes. What it allows is to pay tax in the country you are living/working in and reducing the amount paid to CRA. If the amount you pay out of country is greater than you pay in Canada, you pay nothing to CRA. If it's less you pay the difference.
Being deemed a non resident is based on your ties to Canada. If your spouse or children live in Canada or you have property in Canada, those are the two biggest determiners if your status as a non resident.

Significant residential ties to Canada include:

• a home in Canada;
• a spouse or common-law partner in Canada; and
• dependants in Canada;

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

 

[Bryanna]

It does (at least according to this):
If you leave Canada and keep residential ties in Canada, you are usually considered a factual resident, and not an emigrant. However, if you are also considered to be a resident of another country with which Canada has a tax treaty, you may be considered a deemed non-resident. Deemed non-residents are subject to the same rules as emigrants.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html


The question is not about paying taxes and where the taxes are being paid. But it is whether or not IRCC would accept this case where the co-sponsor who actually earns the income + meets LICO can be the super visa host without being a Canadian resident.

Also, the OP and his brother have submitted additional financial support + an undertaking for the same application. As per IRCC, this is not allowed. It would be interesting to see which of these incomes and/or host(s) is actually considered as the super visa host.

As the OP's sister has already applied for their dad's super visa, he has to wait for a decision

 

[hrhashmi]

Thanks Bryanna and BuleTruck for your valuable inputs.

Based on your inputs, I have gone through the relevant websites. I have a few comments as well.

With regards to possibility of becoming 'deemed non-resident', I have noticed it clearly mentions this for 'tax purposes' only. In our case then, we have not been 'deemed non-resident' since we (brother in-law) have been paying taxes with the status of 'factual resident'.
Furthermore, I went through the tax treaty between Oman which is available on the below linnk:

http://www.fin.gc.ca/treaties-conventions/oman_-eng.asp

I have noticed this to be more towards corporations (correct me if I am wrong here), but also from my limited understanding, Oman taxes are mainly for corporations and on the profit - they end up making in a year. Thus, individuals are not being taxed. This is the reason why, my brother in-law pays all his taxes in Canada and not in Oman:
1) He either doesn't qualify to pay taxes in Oman as per this treaty.
2) His payment of taxes in Oman are less than his payable tax in Canada, for which then, he pays the difference in Canada.
Therefore, he still seems to be 'factual resident'.

In all cases, I see he is paying taxes in Canada as a factual resident (as highlighted by Bryannna).

It is true, that this is a bit confusing case, but (I hope I am right here), I don't see my brother in-law to be 'deemed non-resident' as he has strong ties to Canada (by his wife and kids living there) and pays taxes in Canada and see him being 'factual resident'.

Application for my father's supervisa was uploaded on 19th August 2017 and till now we have not received any response from CIC. It is now 19th day and we are being hopeful that we will get his supervisa approved. Sometimes I have read (in these forums) that in case of rejections the response from CIC is usually within 15 days.

Once again, many thanks for your support and we are hoping to get good news...

 

[Bryanna]

Hi,

I have noticed this to be more towards corporations (correct me if I am wrong here), but also from my limited understanding, Oman taxes are mainly for corporations and on the profit - they end up making in a year. Thus, individuals are not being taxed. This is the reason why, my brother in-law pays all his taxes in Canada and not in Oman:

Unfortunately, your interpretation that the tax treaty applies mostly to corporations is incorrect.

The same link specifies who is covered by the tax treaty, and I'm quoting from that text:
1. For the purposes of this Agreement, unless the context otherwise requires:

d) the term "person" includes an individual, a company, a trust, a body of persons, and in the case of the Sultanate of Oman, an establishment owned or exploited by an individual that is treated as a taxable entity under its laws;

You may also want to read 'Article 16: Income from employment'. One question: Is your brother-in-law's salary credited to his Canadian bank account? That would change the entire understanding of this situation.

It is true, that this is a bit confusing case, but (I hope I am right here), I don't see my brother in-law to be 'deemed non-resident' as he has strong ties to Canada (by his wife and kids living there) and pays taxes in Canada and see him being 'factual resident'.

As I had mentioned a couple of posts earlier, your brother-in-law is a 'factual resident' because of his residential ties to Canada/your sister.

That said, however, because he has a 'Oman Resident Visa' which was sponsored by his Omani employer (along with his employment visa), maybe IRCC would consider him as a 'deemed non-resident Canadian'.

It is a somewhat confusing situation. Hope IRCC gives a favorable decision soon