I know you like playing the role of hairshirt, but are you really confident that this is true? That he would be paid as a 'resident of Sweden'?
It is partially dependent on treaties with Sweden. The individual is still a non-resident of Canada so payroll would be different than residents of Canada. Not saying that they need to be paid like a Swedish citizen. It appears as though the individual is acting as though they are a resident of Canada while living full-time in Sweden. I would imagine there is a good chance they are listing their rental property as their address. No matter what CRA needs to be informed when you become a non-resident and if you move to Sweden and rent out your house you are no longer a resident of Sweden. It is actually in their best interest because these are the types of cases when there is eventually a reassessment you can owe CRA money.
I work in payroll, what you’ve stated is correct. In simple terms, the employee is taxed based on the province the company is based in that the employee is employed at. For example, if an employee works for a company based out of BC but resides in AB, they would fall under BC taxation.
Yes, my point is - to extent I'm aware - Canadian employer would keep doing everything as normal in most cases. I.e. withhold taxes as if the employee is local. For places where Canada has a dual-tax treaty, and I presume this is the case for Sweden, that person would deduct from their swedish taxes what they've already paid in Canada. There is more detail for specific cases and ways to adjust witholdings but the idea that a Canadian employer would have to or even know how to "pay the employee as a resident of Sweden" is absurd.
Hello
There is nothing to deduct from Swedish taxes as he has zero income gained in Sweden.
Well they still come and live here for a few months.
I have no opinion on whether he owes Swedish taxes or not. But I repeat exactly what I would say if the situation were reversed: you should absolutely NOT assume that because you are living in a country and working remotely that you do not owe local taxes.
That means nothing. He needs to speak to CRA about his residency and tax residency status and speak to an accountant about potential tax liabilities in Sweden and whether he can actually dined that much time and work in Sweden if he doesn’t have a WP. Much better to be upfront versus CRA discovering that you have not been upfront for many years. CRA is the only one who can tell his tax residency status and if he is spending the majority of their time in Sweden they aren’t residents of Canada.
That’s irrelevant
Kindly note that we went to the interview last week. They updated our information and handed us the PRRA application that we agreed to apply for. We are gathering the information and filling up the application and will be submitting it in the upcoming couple of days hope this will buy us enough time to receive the PR through our SPN application.
