Passive income from a pre-existing app and GST/HST registration

[canadian-folk]

Hi everyone,

I'm currently in Canada on an LMIA-based closed work permit (Global Talent Stream).

Before moving here, I developed a mobile app that generates subscription revenue through Apple's App Store. The app is not available in Canada, as I specifically blocked the Canadian market to avoid immigration issues.

I recently consulted an immigration lawyer. From what I understood, their advice was:

• Receiving passive income from an app created before moving to Canada should generally be fine.
• Actively developing, maintaining, or marketing the app myself while in Canada could be considered unauthorized work.
• Hiring people outside Canada to handle those activities may be acceptable.
• There's no 100% guarantee, since IRCC could interpret the situation differently.

However, after updating my tax residency to Canada in Apple Developer, Apple now requires me to register for GST/HST to continue receiving payments, even though the app isn't available in Canada.

I have two questions:

1. Does the lawyer's interpretation sound reasonable? Has anyone dealt with a similar situation?
2. Could registering for a GST/HST number as a sole proprietor be interpreted as self-employment and affect my closed work permit or future PR application, even if I'm only receiving passive income?

I'd really appreciate any experiences or official guidance. Thanks!

 

[Buletruck]

Hi everyone,

I'm currently in Canada on an LMIA-based closed work permit (Global Talent Stream).

Before moving here, I developed a mobile app that generates subscription revenue through Apple's App Store. The app is not available in Canada, as I specifically blocked the Canadian market to avoid immigration issues.

I recently consulted an immigration lawyer. From what I understood, their advice was:

• Receiving passive income from an app created before moving to Canada should generally be fine.
• Actively developing, maintaining, or marketing the app myself while in Canada could be considered unauthorized work.
• Hiring people outside Canada to handle those activities may be acceptable.
• There's no 100% guarantee, since IRCC could interpret the situation differently.

However, after updating my tax residency to Canada in Apple Developer, Apple now requires me to register for GST/HST to continue receiving payments, even though the app isn't available in Canada.

I have two questions:

1. Does the lawyer's interpretation sound reasonable? Has anyone dealt with a similar situation?
2. Could registering for a GST/HST number as a sole proprietor be interpreted as self-employment and affect my closed work permit or future PR application, even if I'm only receiving passive income?

I'd really appreciate any experiences or official guidance. Thanks!

I'd be asking a tax specialist, not an immigration lawyer. My limited understanding is if you are a tax resident of Canada, you need to report worldwide income.