Still employed with previous company after PR?

[shan1223]

Hello everyone

I finally landed as PR in Oct 2020 (under PNP), and while I moved from my previous company, my employer was happy to extend a full-time work from home in my case.

My salary has been going to my previous bank account (in another country) and I am currently just transferring a portion of it to my Canadian bank account for my expenses here (rent, utilities etc). However, since I have settled in my province, I would like to clairfy a few things.

1. Is it ok to continue this arrangement? If not, what is the alternative?
   1. Do I ask my employer to make deposits to my Canadian bank account?
   2. Are there issues if I continue my existing arrangement? (from tax standpoint etc?)
2. I want to start paying taxes in Canada
   1. Is there a way I can save on taxes? Because according to my calcuation - the taxes that I will be paying here is almost 4-times my previous country's taxes

 

[cansha]

Hello everyone

I finally landed as PR in Oct 2020 (under PNP), and while I moved from my previous company, my employer was happy to extend a full-time work from home in my case.

My salary has been going to my previous bank account (in another country) and I am currently just transferring a portion of it to my Canadian bank account for my expenses here (rent, utilities etc). However, since I have settled in my province, I would like to clairfy a few things.

1. Is it ok to continue this arrangement? If not, what is the alternative?
   1. Do I ask my employer to make deposits to my Canadian bank account?
   2. Are there issues if I continue my existing arrangement? (from tax standpoint etc?)
2. I want to start paying taxes in Canada
   1. Is there a way I can save on taxes? Because according to my calcuation - the taxes that I will be paying here is almost 4-times my previous country's taxes

1. You can work from home. There is nothing wrong with that arrangement

1. Depends on you and your employer
2. You need to check whether the country of your employment has tax avoidance treaty with Canada

2. You can't save taxes. As a Canadian resident you need to pay tax on your world income. If there is any tax deducted by your employer you will get refund on that by filing taxes in your country of employment.

 

[YVR123]

You can defer tax the year after by buying RRSP.

 

[canuck78]

Hello everyone

I finally landed as PR in Oct 2020 (under PNP), and while I moved from my previous company, my employer was happy to extend a full-time work from home in my case.

My salary has been going to my previous bank account (in another country) and I am currently just transferring a portion of it to my Canadian bank account for my expenses here (rent, utilities etc). However, since I have settled in my province, I would like to clairfy a few things.

1. Is it ok to continue this arrangement? If not, what is the alternative?
   1. Do I ask my employer to make deposits to my Canadian bank account?
   2. Are there issues if I continue my existing arrangement? (from tax standpoint etc?)
2. I want to start paying taxes in Canada
   1. Is there a way I can save on taxes? Because according to my calcuation - the taxes that I will be paying here is almost 4-times my previous country's taxes

If you are a resident in Canada your employer will have to change how they are paying you to include deductions, report your income to CRA, etc. Your previous arrangement should have changed as soon as you got to Canada and received PR through PNP. If your employer is sending your salary abroad without taking the proper deductions and declaring your income that is tax fraud. They will need to correct any error back to when you receive PR. If you want the benefits of Canada you have to pay the taxes. Less taxes, less benefits. If your employer is abroad you have to research or speak to an accountant about how to best set-up yourself as someone who is self-employed. Although you may be an employee of a company abroad you are essentially working as a consultant while living in Canada and will need to set up a way for you to pay your own taxes, contributions, etc. Would be setting aside a good chunk of your income because you are not paying taxes at the moment.