In the Edge of rejection –Help needed

[Dimma]

I am an April -2013 applicant , I received the following email from CIC to provide additional data for my application

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This refers to your application for permanent residence in Canada.

This refers to your application for permanent residence in Canada. Please note that your file is in process and will continue to be processed at the Case Processing Pilot-Ottawa (“CPP-O”) office. I am writing you this letter to express my concerns regarding your application.

According to the Immigration and Refugee Protection Regulations, applicants in the Canadian Experience Class are assessed on the basis of the pass/fail requirements set out in subsection R87.1(2). The assessment of these criteria determines whether a worker with Canadian experience will be able to become economically established in Canada. The criteria are:
• knowledge of English or French,
• Canadian skilled work experience,
• Canadian educational credentials (for the Post-Graduation Stream only).

I have grounds to believe you have not acquired the claimed work experience as ------------ in Canada, as claimed in your application.
You provided a letter of employment dated March 26, 2013 stating you were employed as ---------- at ----------- since Month 2011. The letter states you earned XX,XXX $ for the year 2012.However, your T4 and income tax report for the year 2012, show employment income of YY,YYY$, which would indicate you have not worked full time, as stated in the letter of employment.


Before I make my final decision, you may submit additional information or documents relating to the above matter. You have until January 18, 2014 to submit additional information to our office at the address shown below

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Issue here is there is mismatch between salary in employment letter and in T4 , Actually it is a huge difference what is there in T4 less than 1/3 of what is there in employment letter.
I have provided a explanation letter with my application package , looks they are not considering that.

My Story:

I am an intra-company transferee , Salary in employment letter is sum of the following components :
-Per-Diem received in Canada in Monetary/Cash form.
-Non Cash per Diems such as cost for Accommodation, Transportation etc in Canada paid by directly the employer in Canada – Use of corporate credit card.

But T4 contains only Per-Diem received in Canada in Monetary form as Income , I don’t know even it is right as per Tax laws , Company pay tax in Canada on behalf of me.

As an answer to above letter from CIC , I am planning provide the following

1. Letter of explanation from my side , similar one explained above.
2. Letter from Canada employer to show the break of salary and re iterating the full time employment.(Try to get it)

Anybody have similar experience , Please share .

Any tax experts here , to Know what my company doing is rightas per tax norms , ie claiming only Cash -per diem for tax ?

In Foreign worker manual from CIC http://www.cic.gc.ca/english/resources/manuals/fw/fw01-eng.pdf , There is reference that salary can include Cash + Non Cash perdiems.
Do I need to refer this manual in my explanation ?

Do I need to include any letter from any colleagues ?

Any help on this matter is highly appreciated ,

 

[canuck_in_uk]

In Foreign worker manual from CIC http://www.cic.gc.ca/english/resources/manuals/fw/fw01-eng.pdf , There is reference that salary can include Cash + Non Cash perdiems.

Direct quote from the manual:

Note: that non-cash per diems (e.g., hotel, transportation paid for by the employer) are not to be included in the calculation of the overall salary. Only allowances compensated in monetary form and paid directly to the employee are to be included.

 

[jes_ON]

without knowing more details or seeing the exact wording of your Employer's letter, it is difficult to fully understand the situation.

However - it sounds like you have 2 key issues -
1 - Benefits are not salary and should not be identified as such in the letter
2 - The benefits you describe are likely taxable and should be on your T4.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/menu-eng.html

Simply saying "that's how my employer does it" isn't going to help you. I suggest you seek the advice of a tax professional immediately, before responding to CIC, to make certain of what you need to do to remedy the situation. Then talk to your employer - getting your employer's cooperation may not be easy, but you should also try to talk to the payroll manager - again, AFTER you talk to a tax professional, so that you have a stronger case to make with your employer.

 

[ABS_1382]

Hey Dimma,

It looks like you manage to convince the VO about the descrepency in the salary in ref leter and T4.

Please share your expeirnce so that it helps other forum members...

Thanks.

 

[sjulien]

Till now you might get rejection or decision made status.

Anyway, you need to ask your company or make one letter to mentioned about extra benefits including flight, cab/taxi, accommodation etc amounts + actually salary which is match to your T4.

I would also suggest you to check your last month year salary stub.. you can clearly understand how much you got it as base package, cpp, EI.

 

[CEC_1304]

Till now you might get rejection or decision made status.

Anyway, you need to ask your company or make one letter to mentioned about extra benefits including flight, cab/taxi, accommodation etc amounts + actually salary which is match to your T4.

I would also suggest you to check your last month year salary stub.. you can clearly understand how much you got it as base package, cpp, EI.

If you are telling this to Dimma from his/her time line it looks like he/she managed to land on "feb 23 2014"

 

[Dimma]

If you are telling this to Dimma from his/her time line it looks like he/she managed to land on "feb 23 2014"

I am here , Landed in Feb-2014.
I did a research on my query topic and answered the query with explanation and proofs for my full time employment in Canada
and why there is a difference in salary reported in T4 and employer letter.

Here is what I provided ,

I am an intra-company transferee , Salary in employment letter is sum of the following components :
-Per-Diem received in Canada in Monetary/Cash form
- Indian Salary expressed in Canadian dollars
-Non Cash per Diems such as cost for Accommodation, Transportation etc in Canada paid by directly the employer in Canada – Use of corporate credit card.

Income reported in the box 14 of T4 slip $yy,yyy is only the Indian salary component of the offered salary, expressed in Canadian dollars, paid towards my employment in Canada.
Article 15 of the Canada-India Tax Treaty agreement, allows multinational companies to report the Indian salary as an income in Canada during their employees transfer period to Canada.

However, In employer letter states the salary counting all 3 components(Indian salary in CAD + Cash and Non Cash perdiems).
The Canada Revenue Agency's guideline about benefits and allowances allows companies to treat the per diems to be classified as non-taxable benefit. So it is not reported in T4.

I have provided the proof for all Cash/Non-cash perdiems such as
1. Receipts for accommodation rent
2. Car rental receipts/ Fuel bills
3. Bank statement for cash per-diems
And
Indian pay slips with CAD conversion applied to match exact value appearing in T4.

Also provided an updated employment letter.

My explanation and data provided was accepted and with few weeks I got the medical request and after that everything was very smooth and fast.

That's my story. Good luck .

 

[ABS_1382]

Hey great...Its a good learning for others....thanks for taking time out to discuss your experience....

Luckily mine is simple ;D I checked the salary on my employment letter with my T4 and it matches ;D

Thanks once again....

 

[jes_ON]

That's my story. Good luck .

Great, congrats, and thanks for sharing. This will help others -

 

[sjulien]

Good to know, Dimma. Thanks for sharing unique case

 

[sakthiece]

My salary is T4 is 25% more than what mentioned in my offer letter. Is this fine?