PR card renewal and remote work

[separatekitchen]

Hello,

I am about to renew my PR card and I have a question specifically about section 5.2 of the renewal form where you are asked if you have been employed full-time for a Canadian company while abroad.

Context: I got my PR in march 2018 and went back to my home country in march 2019 then came back to Canada in february 2022

My understanding of the question 5.2 is that it is aimed at people who want their time outside of Canada to count towards their residency obligation, which is not my case as I have enough days accumulated in Canada (february 2022 to feb 2024). So my question is wether I should answer yes or no to the question 5.2.

I have worked for a year and half remotely for a Canadian company while outside of Canada in 2019 after I left Canada, but the relocation was not part of my contract or anything so I don't have proof of employment other than my payslips. I am not looking to have this time count towards my residency obligation.

If I answer yes, should I just ignore providing the required documents for the remote work then? Or would it be fine to answer no?

Any help appreciated, thanks!

 

[armoured]

Hello,

I am about to renew my PR card and I have a question specifically about section 5.2 of the renewal form where you are asked if you have been employed full-time for a Canadian company while abroad.

Context: I got my PR in march 2018 and went back to my home country in march 2019 then came back to Canada in february 2022

My understanding of the question 5.2 is that it is aimed at people who want their time outside of Canada to count towards their residency obligation, which is not my case as I have enough days accumulated in Canada (february 2022 to feb 2024). So my question is wether I should answer yes or no to the question 5.2.

I have worked for a year and half remotely for a Canadian company while outside of Canada in 2019 after I left Canada, but the relocation was not part of my contract or anything so I don't have proof of employment other than my payslips. I am not looking to have this time count towards my residency obligation.

If I answer yes, should I just ignore providing the required documents for the remote work then? Or would it be fine to answer no?

Any help appreciated, thanks!

It is fine to answer no, as that section is essentially meant for those who are 'claiming' credit for those days outside of Canada (to count towards PR).

If you do not need those days and you enter 'yes', it will likely significantly slow processing of your card (they'll have to look into it even if not needed), and they days will probably be denied anyway (as you understand well).

 

[separatekitchen]

Alright, thanks for your quick reply! My concern with answering no was that then it will still show in my work/address history that I was abroad while employed by a Canadian company, but you seem to say this would not be an issue? I guess I will try that then, thank you again for the help!

 

[canuck78]

Hello,

I am about to renew my PR card and I have a question specifically about section 5.2 of the renewal form where you are asked if you have been employed full-time for a Canadian company while abroad.

Context: I got my PR in march 2018 and went back to my home country in march 2019 then came back to Canada in february 2022

My understanding of the question 5.2 is that it is aimed at people who want their time outside of Canada to count towards their residency obligation, which is not my case as I have enough days accumulated in Canada (february 2022 to feb 2024). So my question is wether I should answer yes or no to the question 5.2.

I have worked for a year and half remotely for a Canadian company while outside of Canada in 2019 after I left Canada, but the relocation was not part of my contract or anything so I don't have proof of employment other than my payslips. I am not looking to have this time count towards my residency obligation.

If I answer yes, should I just ignore providing the required documents for the remote work then? Or would it be fine to answer no?

Any help appreciated, thanks!

It looks like you may have continued to work for your Canadian employer while returning to your home country. Given that you were gone for a long period of time assume you did reach out to CRA to inform them you had moved abroad and would become a non-resident and asked them for help determining whether you would remain a tax resident or not. When you moved out of Canada, and especially if you were no longer a tax resident of Canada, how your employer could pay you would likely have to change. You would likely have to get paid like any foreign national living abroad who worked as a consultant for a Canadian employer located in Canada. You would have also had to reapply for your health card having not met the residency requirement to qualify for healthcare in any province even though you had a valid health card. Did you notify the provincial health authority that you were moving out of Canada? You need a valid health card and need to meet the residency obligation to qualify for healthcare in the province to qualify for public healthcare in that province. That would start the application process again so any wait time would be applicable again and you’d have to meet the residency requirements for 1st year residents to qualify for healthcare in that province like anyone moving to the province for the first time from abroad.

I know the question is about PR card renewal but based on the answer have some concerns that OP may have just continued working for their employer like they had moved to another area of the province without updating especially CRA.

 

[separatekitchen]

It looks like you may have continued to work for your Canadian employer while returning to your home country. Given that you were gone for a long period of time assume you did reach out to CRA to inform them you had moved abroad and would become a non-resident and asked them for help determining whether you would remain a tax resident or not. When you moved out of Canada, and especially if you were no longer a tax resident of Canada, how your employer could pay you would likely have to change. You would likely have to get paid like any foreign national living abroad who worked as a consultant for a Canadian employer located in Canada. You would have also had to reapply for your health card having not met the residency requirement to qualify for healthcare in any province even though you had a valid health card. Did you notify the provincial health authority that you were moving out of Canada? You need a valid health card and need to meet the residency obligation to qualify for healthcare in the province to qualify for public healthcare in that province. That would start the application process again so any wait time would be applicable again and you’d have to meet the residency requirements for 1st year residents to qualify for healthcare in that province like anyone moving to the province for the first time from abroad.

I know the question is about PR card renewal but based on the answer have some concerns that OP may have just continued working for their employer like they had moved to another area of the province without updating especially CRA.

Well that is were I believe remote work is a bit of a grey area but I have been told by immigration consultant that this should be fine, all my taxes are up to date and were filed with the help of an accountant. I do not have the same job now as I was laid off when covid started back in 2020 and my initial plans to come back got cancelled. I am now in another province and everything is fine regarding healthcare as far as I know.

As I mentioned my main concern was more if answering no to section 5.2 would be equivalent to misrepresenting the reality of my application. What is the worst case that can happen, only further delays to the renewal as long as I have enough days?

Thanks for the concern though, appreciated.

 

[armoured]

It looks like you may have continued to work for your Canadian employer while returning to your home country. Given that you were gone for a long period of time assume you did reach out to CRA to inform them you had moved abroad and would become a non-resident and asked them for help determining whether you would remain a tax resident or not. When you moved out of Canada, and especially if you were no longer a tax resident of Canada, how your employer could pay you would likely have to change. You would likely have to get paid like any foreign national living abroad who worked as a consultant for a Canadian employer located in Canada.

I think quite a bit of the above is simply not true. Can you provide a source please?

From what I know, CRA may and sometimes will determine that someone who continues their employment with the same employer, simply working remotely, remains a Canadian tax resident (the old 'ties with Canada thing' - although might depend on other factors as well.) And CRA rarely has an issue with anyone continuing to pay Canadian taxes, even if they could (possibly) qualify as non-tax resident.

AFAIK, it works, mostly, the other way: someone who wishes to be a non-tax resident may need to make changes to payment arrangements, contractual arrangements, etc (and for some, that may not be a beneficial arrangement vis-a-vis their relationship with their employer, job protections, etc). Someone who just does the same work, same job, same contract, paid the same way - on the contrary, they may be at risk of being considered tax resident with the attendant tax liaibilities despite thinking they'd 'left.' (An asymmetric risk, because they don't come after you for possibly paying more ...)

That said - yes, one can contact CRA to inquire, and that may be a good idea. But if anything, CRA is wary of those 'sort-of' leaving Canada to pay less taxes. (And another 'that said' - the generalities I've referred to don't address the specifics, so this is not advice.)

I understand your (frequent) points about health care eligibility in such cases, but consider sticking to the question at hand; or at least limit to points where the advice is clear and you're certain of the topic. Or at least show some humility and consider asking whether they'd consulted a professional, because it can be complex - and people come here for questions primarily about the immigration aspects.

[Warning of course that one may incur tax liabilities in other countries, or have issues with employment permissions, but a large topic and not one I'm even going to pretend to know about.]

 

[canuck78]

I think quite a bit of the above is simply not true. Can you provide a source please?

From what I know, CRA may and sometimes will determine that someone who continues their employment with the same employer, simply working remotely, remains a Canadian tax resident (the old 'ties with Canada thing' - although might depend on other factors as well.) And CRA rarely has an issue with anyone continuing to pay Canadian taxes, even if they could (possibly) qualify as non-tax resident.

AFAIK, it works, mostly, the other way: someone who wishes to be a non-tax resident may need to make changes to payment arrangements, contractual arrangements, etc (and for some, that may not be a beneficial arrangement vis-a-vis their relationship with their employer, job protections, etc). Someone who just does the same work, same job, same contract, paid the same way - on the contrary, they may be at risk of being considered tax resident with the attendant tax liaibilities despite thinking they'd 'left.' (An asymmetric risk, because they don't come after you for possibly paying more ...)

That said - yes, one can contact CRA to inquire, and that may be a good idea. But if anything, CRA is wary of those 'sort-of' leaving Canada to pay less taxes. (And another 'that said' - the generalities I've referred to don't address the specifics, so this is not advice.)

I understand your (frequent) points about health care eligibility in such cases, but consider sticking to the question at hand; or at least limit to points where the advice is clear and you're certain of the topic. Or at least show some humility and consider asking whether they'd consulted a professional, because it can be complex - and people come here for questions primarily about the immigration aspects.

[Warning of course that one may incur tax liabilities in other countries, or have issues with employment permissions, but a large topic and not one I'm even going to pretend to know about.]

Things like tax residency, residency and the fact that there are residency requirements when it comes to healthcare are all related to immigration. Many are also unaware of many of these things and think that if they continue to pay Canadian taxes like the when they were living in Canada (it’s unclear whether they were listing their residential address in Canada while abroad) even if they are living abroad it won’t a big issue. Any time someone's is not being honest with CRA is it a big deal. Not living in Canada also has implications on how the employer pays an employee as well. If moving out of Canada you do need to inform CRA and they can help you determine your tax residency status. Employers also want to ensure they are following proper payroll requirements because they don’t want to get penalized. They need to know from CRA whether their employee remains a tax resident because it would impact things like payroll deductions.

Our provincial healthcare systems are awful at auditing but if they do audit you it will be years down the line. This is why it is best to follow the residency rules and reapply if you have not met the residency rules because nobody wants a letter 5 years from now saying you weren’t entitled to the healthcare you received. Many are unaware that there are residency rules and assume that as long as they have a valid card they qualify for healthcare which isn’t correct and why I mention it so much.

 

[armoured]

Things like tax residency, residency and the fact that there are residency requirements when it comes to healthcare are all related to immigration. Many are also unaware of many of these things and think that if they continue to pay Canadian taxes like the when they were living in Canada (it’s unclear whether they were listing their residential address in Canada while abroad) even if they are living abroad it won’t a big issue. Any time someone's is not being honest with CRA is it a big deal. Not living in Canada also has implications on how the employer pays an employee as well. If moving out of Canada you do need to inform CRA and they can help you determine your tax residency status. Employers also want to ensure they are following proper payroll requirements because they don’t want to get penalized. They need to know from CRA whether their employee remains a tax resident because it would impact things like payroll deductions.

Source, please. Please explain what specifically you're claiming: in what way would it be an issue, from a tax and employment perspective, for someone to continue being paid by a Canadian company as resident while living abroad - keeping in mind that one CAN be a tax resident while residing abroad. How would an employer be penalized? For what?

Because on tax matters, you're not a credible source. (I can provide an example).

 

[buzzard]

Well that is were I believe remote work is a bit of a grey area but I have been told by immigration consultant that this should be fine, all my taxes are up to date and were filed with the help of an accountant. I do not have the same job now as I was laid off when covid started back in 2020 and my initial plans to come back got cancelled. I am now in another province and everything is fine regarding healthcare as far as I know.

As I mentioned my main concern was more if answering no to section 5.2 would be equivalent to misrepresenting the reality of my application. What is the worst case that can happen, only further delays to the renewal as long as I have enough days?

Thanks for the concern though, appreciated.

HI, In a similar situation, what did you do eventually regarding answering the question about work.