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Keeping PR status by getting income by a Canadian company

xpro

Full Member
Feb 13, 2011
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I work online and the company that pays is incorporated in Canada. I get paid by commission on sales (affiliate marketing). As far as I know I can declare myself as a non-resident for tax purposes and live outside of Canada as long as I would still retain my PR status because I work for a Canadian corporation.

Am I correct on my interpretation of the laws in effect?
 

Leon

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Jun 13, 2008
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No. An online job for a Canadian employer would not suffice to keep your PR. You need to have been posted outside Canada to a full time position for it to be counted. An online job would not require you to be posted overseas.
 

dpenabill

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Apr 2, 2010
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xpro said:
I work online and the company that pays is incorporated in Canada. I get paid by commission on sales (affiliate marketing). As far as I know I can declare myself as a non-resident for tax purposes and live outside of Canada as long as I would still retain my PR status because I work for a Canadian corporation.

Am I correct on my interpretation of the laws in effect?
While I concur in the comments made by Leon it warrants further noting that the exception allowing credit toward compliance with the PR Residency Obligation based on being abroad while employed by a Canadian business has been narrowly interpreted and restrictively applied. It must be an assignment abroad, for a full time position (as Leon noted) but it must also be a temporary assignment, and a position/assignment managed from a home office in Canada, with an expectation that the employee will return to his or position in Canada.

There have also been some cases which suggest that working for commissions will not qualify, but those cases were entangled in other circumstances which left the specific impact unclear (independent contractor relationship does not qualify, and some of the cases address whether compensation based on commission shows that there was an independent contractor or consultant relationship rather than an employee assigned to a full time position, but the actual facts in the cases are typically far from straight-forward, but rather are usually complicated if not convoluted).
 

keesio

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dpenabill said:
While I concur in the comments made by Leon it warrants further noting that the exception allowing credit toward compliance with the PR Residency Obligation based on being abroad while employed by a Canadian business has been narrowly interpreted and restrictively applied. It must be an assignment abroad, for a full time position (as Leon noted) but it must also be a temporary assignment, and a position/assignment managed from a home office in Canada, with an expectation that the employee will return to his or position in Canada.

There have also been some cases which suggest that working for commissions will not qualify, but those cases were entangled in other circumstances which left the specific impact unclear (independent contractor relationship does not qualify, and some of the cases address whether compensation based on commission shows that there was an independent contractor or consultant relationship rather than an employee assigned to a full time position, but the actual facts in the cases are typically far from straight-forward, but rather are usually complicated if not convoluted).
It's tricky. I had a lot of assignments and business travel abroad for my Canadian employer. None of it was applicable towards PR RO when I investigated it. This was what I was informed by CIC officials. Now, I know that CIC can be inconsistent, but in this case I didn't have a single CIC official say it would be accepted. It ended up not mattering for me since I ended up applying for citizenship and not counting those days on travel (citizenship RO is more strict and there is no debate that those days don't count). So in regards to the exact letter of the law, CIC seems to have a strict interpretation of it.
 

dpenabill

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keesio said:
It's tricky. I had a lot of assignments and business travel abroad for my Canadian employer. None of it was applicable towards PR RO when I investigated it. This was what I was informed by CIC officials. Now, I know that CIC can be inconsistent, but in this case I didn't have a single CIC official say it would be accepted. It ended up not mattering for me since I ended up applying for citizenship and not counting those days on travel (citizenship RO is more strict and there is no debate that those days don't count). So in regards to the exact letter of the law, CIC seems to have a strict interpretation of it.
I agree, emphatically, that qualifying for the exception does indeed appear to be tricky unless the PR is a regular employee for a Canadian business ordinarily working in a location in Canada, and it is a very straight-forward temporary assignment abroad. There is, for example, some incongruity in requiring that it be both a full time position and also a temporary assignment.

Thus, while Leon straight-forwardly stated the essence of the rule and that the work arrangement described by xpro would not qualify for the assignment, whenever I see these queries I think it really needs to be said, if not emphasized, that CBSA and CIC (with the backing of the Federal Courts) have narrowly interpreted and restrictively applied this rule.

Last I looked, the primary source for CIC's information about the rule, in the appendix to the guide for PR card applications, is still a misleading understatement, even though the applicable operational manual, as one of the few manuals recently updated, has incorporated the more narrow and restrictive interpretation as sanctioned by the IAD and Federal Courts.

Despite the narrow, restrictive interpretation and application, however, that is not to say the rule is ineffective or generally unavailable. I have no idea why your particular circumstances would not have qualified for credit as time in Canada, but there are also many cases in which PRs are given credit for the time they spent abroad employed by a Canadian business.

There is little doubt, though, that a PR relying on this credit should be extremely careful in assessing its applicability to his or her situation. It is my impression that many PRs have erroneously relied on this rule, in large part as advised by less than reputable (and usually unauthorized) consultants. And the consequences generally cannot be undone.
 

Lammawitch

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Dec 21, 2014
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xpro said:
I work online and the company that pays is incorporated in Canada. I get paid by commission on sales (affiliate marketing). As far as I know I can declare myself as a non-resident for tax purposes and live outside of Canada as long as I would still retain my PR status because I work for a Canadian corporation.

Am I correct on my interpretation of the laws in effect?
Are you an employee of the company? Or are you an independent contractor?
Did you work for the company in Canada, and did the company then transfer you abroad?