Working without SIN --- Tax Implications

[tfleeman]

Hi,

I've been working in Toronto, Ontario, Canada for exactly one year now. From April 3, 2016 - October 23, 2016 I was a contractor for a U.S. Company hence my work permit did not need a temporary SIN and I was not assigned one at the time. On October 24, 2016 I jumped up to our parent company and was employed under the Canadian branch of that company and officially joined a Canadian payroll. I found out a month and a half later that I needed a SIN number to be on a Canadian payroll and applied for a SIN on December 7,2016. My paperwork ended up getting lost in the process for nearly two months. I then was required to have an interview at a Service Canada Centre with an integrity officer. He informed me that they could not issue me a temporary SIN at that time and that I should reach out to the CIC in regards to working in Canada without a SIN. I still have a U.S. phone number so I have been trying to contact the CIC at 1 (613) 944-4000. This is a completely automated phone line (or at least I haven't found a path to a CIC employee). My company has been taking the taxes out of my paychecks. I have received a T-4 form in which my SIN reads all zeros.

Should I go ahead with filing taxes without the SIN or is there a way to get in touch with an actual CIC employee to explain what has happened?

Thanks,

TF

 

[scylla]

Sounds like you've been working illegally in Canada since October 24th. I would go ahead and file your taxes - you need to do that.

However you also need to address your status in Canada since that's problematic. Hopefully you're no longer working. If you are - then you need to stop immediately since the work is definitely illegal. You need a SIN to work for a Canadian employer (including a Canadian branch of a US company). To get a SIN, you first need to get a work permit first. To get a work permit, you at a minimum need to get a job offer from your employer and apply for a work permit (this is if your job falls under NAFTA). If your job does not fall under NAFTA, then your employer needs to obtain an approved LMIA before you can apply for a work permit. If you are American, you can go to a US/Canada land border to obtain your work permit. However this isn't going to be a slam dunk. Since you've been working in Canada without authorization for a number of months, it's possible CBSA could refused your work permit and possibly also ban you from working in Canada for six months. Or it's possible they may just grant the work permit. Impossible for any of us to say. When is the last time you entered Canada? Anyway - complicated situation due to the unauthorized work.

Note that you work prior to October 24th could be problematic as well if any of your work was for Canadian clients / customers.

 

[tfleeman]

Thanks for the response. My work permit extension has been filed. And all work since last April was for a Canadian client. I've been living in Toronto since November 1, 2016 but the last time I entered Canada was February 20,2017. I'll go ahead with filing taxes and wait to hear back about my application for extension to sort the SIN situation out. It is a very complicated situation and I don't think my company handled this in the way they were supposed to.

 

[Rob_TO]

Thanks for the response. My work permit extension has been filed. And all work since last April was for a Canadian client. I've been living in Toronto since November 1, 2016 but the last time I entered Canada was February 20,2017. I'll go ahead with filing taxes and wait to hear back about my application for extension to sort the SIN situation out. It is a very complicated situation and I don't think my company handled this in the way they were supposed to.

Until you hear back on if you can get a work permit/SIN to work in Canada, you would still be working illegally right now if you are continuing to work. This may complicate things for you.