US citizen residing in Canada employed by US

[USCanFam]

Current situation

• I'm a Canadian citizen currently living in the US with legal resident status for the past 8 yrs.
• My husband is a US citizen.
• We would like to move to Canada.
• My husband would be able to temporarily work for his current US employer from Canada, during our transition.
• We both have employment possibilities from a Canadian employer.
• We have not applied for anything yet.
• We would like to move to Canada as soon as possible so the kids can start school there as soon as possible.

Questions

• What is the best way to submit applications for the proper paperwork so my husband can at least legally work for his current US employer while residing in Canada with me, during the entire duration of his PR application process (which looks like could take 18 mths for inland applications - correct?)? Does he need a work permit to do this, or would extended visitor status be sufficient?
• For tax purposes, would we need to claim his income from his US employer with Revenue Canada as well as the IRS in the US if he is residing in Canada?

 

[Leon]

It would be better for you to apply outland. You can apply outland, even if he is "visiting" you in Canada. He can however not officially move to Canada on visitor status.

Crossing the border every day for work can be problematic and he might be hassled by the border guards but if you apply outland, he could be getting his PR in as little as 6 months so at least it is not for a long time. He should apply for a Nexus card if he doesn't have one already to make his border crossing easier.

He would not have to file taxes in Canada when he is living in Canada as a visitor but when he gets his PR, he will.

 

[chinook65]

Great questions.

I would love to get some answers on this also as I own my own company in the U.S. and plan to keep working for it once we are residing in Canada.

 

[CharlieD10]

1. You don't have to apply via the Inland process just because he will be living here. It is likely he could obtain his PR (4-6 months in some cases) in less time than it would take for him to get an Open Work Permit via the Inland process (10 months minimum).
2. Visitors need a work permit or study permit. His extended visitor status is not sufficient.
3. If you have Canadian employment prospects, the Canadian employer might be willing to obtain an LMO so he can get a work permit to take a job with them.

 

[USCanFam]

"Outside Canada

• average of 6 to 12 months to process routine applications
• right of appeal
• you can leave and re-enter Canada while your application is being processed as long as you meet all requirements to enter Canada
• if you want to work in Canada while your application is being processed, you must apply for a regular work permit"

- Source: CIC

Looking at this, it looks like it would be a better option to apply outland. It would mean that:

• I would need to apply as a sponsor using a Canadian address for myself, which I've got.
• I would need to show proof of Canadian employment or other means of being able to financially support him.
• We would need to find a way to legally enable him to stay in Canada while his PR is being processed, which might take longer than 6mths (probable max length of stay as a legal visitor from the US according to CIC).

The only questions remaining are

• What to do if the PR process does take longer than 6mths (or whatever max length of stay they would indicate on his passport)? There seems to be conflicting ideas here: work permit, or extended stay application. For obvious reasons, we would rather not have him go back to the US for the remainder of the waiting period.
• After applying for his PR from the US, what happens at the border for him if we drive up to the Canada border with a cargo trailer with our belongings and they ask what we're doing?
• Extended Stay: The CIC mentions that on this application he has to provide details of how he intends to leave Canada including the date, time and type of transportation. Considering that he has a PR app in process, providing this information would be considered fraudulent as he obviously does not intend on leaving, no? A little confused about this part.

 

[CharlieD10]

1. You apply for an extension of his visitor status 30 days before it is set to expire. The reason is to wait out the PR process.

2. It is best if you do the talking in this case, because if the Canadian border officials are not certain he is just visiting, they could turn him around. Make some kind of effort to start the PR process, like paying the fees, so you have some proof that you are going about this the correct and legal way. Also have some kind of proof that he still maintains ties to the US, like lease/rental/mortgage agreement. Proof of funds to support yourself while you get re-settled would also be a good idea.

It's not for certain you will need any of these things, but it has never hurt to have them available.

Or, arrange for his work permit first, then move with your things.

 

[Leon]

You could also apply now and move when he gets his PR. As a Canadian living abroad, you would just have to show some plans to move when he gets his PR. However, that means the kids would not start the school year in Canada. Or you could start the application now and move while you are waiting for processing.

 

[USCanFam]

Thank you so much for your help, it sounds like we have some options.

 

[RobsLuv]

You need to read through the information in the Foreign Workers Manual about his US job and doing it while he's in Canada. Start on page 22, "What kind of activities are not considered to be work" and "Examples of activities . . . " below that. If he is not being "renumerated" by a Canadian employer and his US based job does not take employment opportunities away from Canadians (like working online), it's probable that there will be no problem with him continuing to do that job while "visiting" in Canada. But he should be careful about mentioning anything regarding working (even for a US employer) when he's entering the country to stay while he waits for PR status. It will only open a can of worms that he'll have to try to squirm out of.

The information on "Visiting" at the US2Canada website is also something you should review, particularly about how to obtain a Visitor Record for him when he enters Canada.

 

[USCanFam]

Actually, I just noticed that ordained ministers don't need a work permit to enter Canada and my husband is one; but I can't find any information on obtaining the right paperwork and on how long he can stay; is it the same as a visitor: 6mths? What if he obtains documentation from a Canadian company stating he intends on performing the duties of corporate clergy for a year or so?

 

[CharlieD10]

Yes, he is visa-exempt as a US citizen, so he would normally be admitted for 6 months on entry.

 

[QCSunshine]

Also, Revenue Canada defines "residing" differently than CIC, so perhaps you might want to call them to ask any questions you might have? I called them and explained my situation (of being in Canada with a grant from the US and married to a Canadian), and they said I probably needed to file. (And that there is an evaluation form I could fill out so they could decide if I was a resident for tax purposes, but I didn't bother with that.) But they seemed hesitant to definitively say on the phone whether or not I should file or if I was a resident for tax purposes, which was a little frustrating, so I ended up filing my tax papers for the income/grant received after marriage because I had "permanent ties to Canada." (I do not know if it was necessary, but someone else who works in the tax field that we talked with seemed to agree with me.)

It's a bit complicated to file without a SIN. After trying unsuccessfully to get a temporary SIN or international tax number or something (because I thought I needed a number of some sort), I was told I couldn't have one and to submit without one and they would decide if I needed one. So I sent my forms with a copy of my passport, my husband's name and his SIN, etc. They then wrote back and wanted my SIN, which I had by that point because I had just gotten PPR and landed. And now I am still waiting to hear something back.

Long story to say that the definition of "residing" for tax purposes is a lot less clear than for CIC purposes.

 

[USCanFam]

Thank you so much for that info Sunshine, it really does help.