Sponsorship of Parents: Canadian income rule - foreign source of income and rent

[f_canada]

According to IP02:

5.31: Exceptions to Canadian income rule
The exceptions to the Canadian income rule are as follows:
• sponsors who commute from Canada to work in the U.S.A. can use their U.S.
employment income provided it is declared as income on their Canadian income
tax return;
• sponsors living in Canada who declare income from foreign sources on their
Canadian tax returns, can use this foreign income to meet the financial
requirements for sponsorship.
Discretionary approval of financial requirements is not possible

My situation is:

I am Canadian citizen and I have been living in Canada for 10 years, but I work for an American employer as an employee now, it's been almost a year.

I have residency on both countries. Although in the USA, it's an informal rental room, I don't consider it my home. In Canada, my place is rental as well, but I have been renting here for years, so I consider it my home. Although I'm thinking of moving to a friend's place to save on renting.

My employer pays me in US dollar obviously. (If my bank account matters, I can either have an account in the USA ro receive paycheck and then transfer it to my Canadian bank, or bring the cheque over to Canada to deposit there).

I I pay taxes to the US government on every paycheck. I declare this income to the CRA and claim a foreign tax credit on my Canadian return.

Now the tricky part.

Scenario 1: I go work in the office in the US for 2 to 4 weeks, then I come back to Canada for a day or two and repeat the cycle. It's not a fixed schedule, it's sporadic. But I do end up spending more time in the USA then not.

Scenario 2: I go work in the office in the US for 2 weeks, then I come back to Canada for another 4 weeks instead of just a day or two, and repeat the cycle. It's not a fixed schedule, it's sporadic. But I spend more time in Canada then not.


1) Should I be worried in either of these scenarios?

2) Should I be worried in having a bank account in the USA?

3) Should I be worried about my current or future renting situation?

 

[deerestlovelybear]

Neither of your situation will make you eligible to sponsor your parents as you are technically working and earning income in usa. Do note that you will not have sufficient time living physically in Canada to qualified as Canadian resident for tax purpose and even though you can pay tax to both USA and Canada, you have strong tie in USA as you have US employer

 

[jeffporfirio1]

You will need 2014, 2015 and 2016 NOA with Canadian income that will need to be more than the minimum for your family size. You will not be eligible.

 

[Rob_TO]

According to IP02:

My situation is:

I am Canadian citizen and I have been living in Canada for 10 years, but I work for an American employer as an employee now, it's been almost a year.

I have residency on both countries. Although in the USA, it's an informal rental room, I don't consider it my home. In Canada, my place is rental as well, but I have been renting here for years, so I consider it my home. Although I'm thinking of moving to a friend's place to save on renting.

My employer pays me in US dollar obviously. (If my bank account matters, I can either have an account in the USA ro receive paycheck and then transfer it to my Canadian bank, or bring the cheque over to Canada to deposit there).

I I pay taxes to the US government on every paycheck. I declare this income to the CRA and claim a foreign tax credit on my Canadian return.

Now the tricky part.

Scenario 1: I go work in the office in the US for 2 to 4 weeks, then I come back to Canada for a day or two and repeat the cycle. It's not a fixed schedule, it's sporadic. But I do end up spending more time in the USA then not.

Scenario 2: I go work in the office in the US for 2 weeks, then I come back to Canada for another 4 weeks instead of just a day or two, and repeat the cycle. It's not a fixed schedule, it's sporadic. But I spend more time in Canada then not.


1) Should I be worried in either of these scenarios?

2) Should I be worried in having a bank account in the USA?

3) Should I be worried about my current or future renting situation?

As long as you're living in Canada then it doesn't matter how you're paid or where the money is coming from, everything would qualify for parents sponsorship.

The key is if a visa officer does a random review, they agree that you are in fact "living in Canada". The commute exception is supposed to be for people that live near the border, travel to work in the morning to the US, and then return after work back to their home in Canada.

With your 2 scenarios, obviously scenario 2 is the better option. With scenario 1 i imagine that would be a guaranteed refusal since you would be living in the US, and just spending time occasionally in Canada. At least with scenario 2 you are spending more time in Canada so argument could be made you're "living" here. Anyways at the end of the day nobody here can tell you for sure either way, since the only opinion that matters is the visa officer who'll be reviewing your file.

 

[sinx23]

You will need 2014, 2015 and 2016 NOA with Canadian income that will need to be more than the minimum for your family size. You will not be eligible.

Hi Jeff, did IRCC change the 2017 PGP required NOA years to 2014, 2015, 2016? Instead of 2013, 2014, 2015? I just want to confirm. Thank you!

 

[f_canada]

As long as you're living in Canada then it doesn't matter how you're paid or where the money is coming from, everything would qualify for parents sponsorship.

The key is if a visa officer does a random review, they agree that you are in fact "living in Canada". The commute exception is supposed to be for people that live near the border, travel to work in the morning to the US, and then return after work back to their home in Canada.

With your 2 scenarios, obviously scenario 2 is the better option. With scenario 1 i imagine that would be a guaranteed refusal since you would be living in the US, and just spending time occasionally in Canada. At least with scenario 2 you are spending more time in Canada so argument could be made you're "living" here. Anyways at the end of the day nobody here can tell you for sure either way, since the only opinion that matters is the visa officer who'll be reviewing your file.

Hi Rob,

How do I guarantee that the officer would see me as living in Canada and not US? Do you think a letter attached to my Option C records would do?

 

[Rob_TO]

Hi Rob,

How do I guarantee that the officer would see me as living in Canada and not US? Do you think a letter attached to my Option C records would do?

You can't guarantee anything. It's a risk you'll need to accept if you want to proceed with your plan. No matter what you do, any time spent living/working in the US may or may not invalidate all income from that source.

 

[jeffporfirio1]

Hi Jeff, did IRCC change the 2017 PGP required NOA years to 2014, 2015, 2016? Instead of 2013, 2014, 2015? I just want to confirm. Thank you!

No.
2017 will be 2013, 2014 and 2015 if you don't meet this and you get selected you took someone else's spot

 

[f_canada]

You can't guarantee anything. It's a risk you'll need to accept if you want to proceed with your plan. No matter what you do, any time spent living/working in the US may or may not invalidate all income from that source.

According to IP 02, there's an exception for commuters. I wonder how they know if I am commuting or not. How long I'm spending in the US or not. Would they just raise the question to me and take my word for it? or if they go as far as checking official cross-boarder tracking systems

 

[Rob_TO]

According to IP 02, there's an exception for commuters. I wonder how they know if I am commuting or not. How long I'm spending in the US or not. Would they just raise the question to me and take my word for it? or if they go as far as checking official cross-boarder tracking systems

Only IRCC and the visa officer that happens to be processing your file can possibly know this.

Just know that if they want to, they can check your entry/exit records with CBSA.