Hi,
A person is employed by a company XYZ that is outside Canada. This XYZ company has a sister company ABC in Canada. Since XYZ and ABC are sister company, one of the strategy of ABC Company is to get human resources from XYZ company. XYZ applied for a work permit for the person to be deployed in ABC Company. It was approved and the person was deployed to company ABC in Canada. Specifically, the salary that is being received by the person deployed in ABC company is still under the currency where XYZ company is based and the person is still under and employed by XYZ. Aside from the salary that the person is receiving, XYZ gives allowances to the person deployed in Canadian currency to shoulder expenses while in Canada (i.e. rent, transportation, food, etc.). Theoretically speaking, the person is still employed with XYZ and not ABC and therefore, ABC just serves as a client of XYZ. The person was deployed in ABC company for almost year in Canada.
Question: Where should this person be paying his/her income tax? In Canada or in his home country? Does anyone here have the same case as the person mentioned above?
A person is employed by a company XYZ that is outside Canada. This XYZ company has a sister company ABC in Canada. Since XYZ and ABC are sister company, one of the strategy of ABC Company is to get human resources from XYZ company. XYZ applied for a work permit for the person to be deployed in ABC Company. It was approved and the person was deployed to company ABC in Canada. Specifically, the salary that is being received by the person deployed in ABC company is still under the currency where XYZ company is based and the person is still under and employed by XYZ. Aside from the salary that the person is receiving, XYZ gives allowances to the person deployed in Canadian currency to shoulder expenses while in Canada (i.e. rent, transportation, food, etc.). Theoretically speaking, the person is still employed with XYZ and not ABC and therefore, ABC just serves as a client of XYZ. The person was deployed in ABC company for almost year in Canada.
Question: Where should this person be paying his/her income tax? In Canada or in his home country? Does anyone here have the same case as the person mentioned above?
