sonomgl said:
....I see, what about if its a joint venture company?
Both you and the business have to qualify under the IRPA and IRPA regs for this to work. CIC knew PRs would be chancing this so they made the rules tight. Refer to regs below and figure out if your plan works...CIC has by now seen every trick in the book! Typically case law shows those with low turnovers, low cash flows, few employees and little in the way of taxes paid struggle to convince CIC and/or the courts that they met the RO through this exemption. CIC might as well say this is for big corporate stock exchange listed organizations!
IRPA regs
Canadian business
61. (1) Subject to subsection (2), for the purposes of subparagraphs 28(2)(a)(iii) and (iv) of the Act and of this section, a Canadian business is
(a) a corporation that is incorporated under the laws of Canada or of a province and that has an ongoing operation in Canada;
(b) an enterprise, other than a corporation described in paragraph (a), that has an ongoing operation in Canada and
(i) that is capable of generating revenue and is carried on in anticipation of profit, and
(ii) in which a majority of voting or ownership interests is held by Canadian citizens, permanent residents, or Canadian businesses as defined in this subsection; or
(c) an organization or enterprise created under the laws of Canada or a province.
Marginal note:Exclusion
(2) For greater certainty, a Canadian business
does not include a business that serves primarily to allow a permanent resident to comply with their residency obligation while residing outside Canada.
Marginal note:Employment outside Canada
(3) For the purposes of subparagraphs 28(2)(a)(iii) and (iv) of the Act, the expression “employed on a full-time basis by a Canadian business or in the public service of Canada or of a province” means, in relation to a permanent resident, that the permanent resident is an
employee of,
or under contract to provide services to, a Canadian business or the public service of Canada or of a province, and is
assigned on a full-time basis as a term of the employment or contract to
(a) a position outside Canada;
(b) an affiliated enterprise outside Canada; or
(c) a client of the Canadian business or the public service outside Canada.
