Working for an employer overseas over the internet while in Canada, is it legal?

[Honeyaustin]

Hello guys,

I'm a web designer / graphic designer / software developer.

I don't have a work permit in Canada yet... I have applied for it and am waiting for it. I don't know if LMIA will come back positive...
I'm currently on a temporary resident VISA in Canada.


I want to work for some people in USA as a web designer.. this is not a full time offer but a part time offer.
Also, I want to teach some web design course to people in Japan.

Is it illegal if I work as a web designer for people in USA while in Canada?

No Canadians will be involved in this case and no Canadian labour market and workers will be affected. No Canadian people will ever need to visit the websites I will be making either...
I will get paid to my bank account in USA. No Canadian bank workers are involved. All of the employers are not Canadians... and they're not interested in visiting Canada for the rest of their lives.

I want to know if this is illegal and later CIC officers will chase after me for this..

[size=10pt][size=10pt]i have a question if you want to live in virtual world how does it matter if u stay in canada or anywhere else, you will not even have a bank account in canada, so what is the point of have a canadian residential address [/size][/size]

 

[eddie_in_NL]

It is fine and legal to do so. your job is regarded as being from the country that the employer is based in, rather than the country you are staying in. In other words, if you work for, say, an Indian website while in Canada, the work experience for that site will be for an Indian employer, not a Canadian one; income from that job will have to be reported to Indian authorities.

I am not so sure. I think it matters where the work is being performed. Also, you do not have a work permit, you cannot work while in Canada.

They may never find out, but still, I think the rule is where you are located while doing the work. Also, if you're residing in Canada for long enough (this is based on your presence in the country, regardless of your visa status), you are considered a resident for tax purposes, meaning you have to pay canadian taxes on your income as well

I would check with a lawyer if necessary.

 

[Bs65]

The point is the OP would be in Canada on a tourist visa so no capability to pay tax as not a resident or legally allowed to work cannot even get an SIN , although the scenario described is a grey area. If paid in the US to a US bank account would question whether liable for tax there but am sure the OP has looked into that as for sure some government somewhere will be looking for their cut of the OPs income but do not see how Canada could on a tourist visa. End of day is up to the OP to decide best route to take that would ensure does not have a negative effect in any future PR aplication.

 

[One_Topsy]

Why is it really a gray area?
Look at this below;
http://www.cic.gc.ca/english/resources/tools/temp/work/about.asp

Examples of activities for which a person would not normally be remunerated or which would not compete directly with Canadian citizens or Permanent Residents in the Canadian labour market and which would normally be part-time or incidental to the reason that the person is in Canada include, but are not limited to:

long distance (by telephone or internet) work done by a temporary resident whose employer is outside Canada and who is remunerated from outside Canada;

 

[kvrforum]

Why is it really a gray area?
Look at this below;
http://www.cic.gc.ca/english/resources/tools/temp/work/about.asp

Examples of activities for which a person would not normally be remunerated or which would not compete directly with Canadian citizens or Permanent Residents in the Canadian labour market and which would normally be part-time or incidental to the reason that the person is in Canada include, but are not limited to:

long distance (by telephone or internet) work done by a temporary resident whose employer is outside Canada and who is remunerated from outside Canada;

Oopps!

There you go!

 

[kvrforum]

[size=10pt][size=10pt]i have a question if you want to live in virtual world how does it matter if u stay in canada or anywhere else, you will not even have a bank account in canada, so what is the point of have a canadian residential address [/size][/size]

This is, in my point of view, good way of making money because you won't have to deal with too much legal restrictions or work place restrictions.
When you work in this way, you'll be only judged under your ability and talent. You will be free to travel wherever you like.
Some of my friends work for well-known American companies this way while living in Europe. No one cares about what they do.

 

[kvrforum]

What kind of activities are not considered to be "work"?
An activity which does not really 'take away' from opportunities for Canadians or permanent residents to gain employment or experience in the workplace is not "work" for the purposes of the definition.
Examples of activities for which a person would not normally be remunerated or which would not compete directly with Canadian citizens or Permanent Residents in the Canadian labour market and which would normally be part-time or incidental to the reason that the person is in Canada include, but are not limited to:

volunteer work for which a person would not normally be remunerated, such as sitting on the board of a charity or religious institution; being a 'big brother' or 'big sister' to a child; being on the telephone line at a rape crisis centre. (Normally this activity would be part time and incidental to the main reason that a person is in Canada);
unremunerated help by a friend or family member during a visit, such as a mother assisting a daughter with childcare, or an uncle helping his nephew build his own cottage;
long distance (by telephone or internet) work done by a temporary resident whose employer is outside Canada and who is remunerated from outside Canada;
http://www.cic.gc.ca/english/resources/tools/temp/work/about.asp

Perfect!

So, it's NOT considered as Canadian work!!

I'm going for it.

Thanks for all debate and information guys.

I found 7 employers who wanted to hire me in Canada. One guy even knew about all immigration procedure and he wanted to help me at heart.
But, all failed due to LMIA and advertisement requirement.
I will no longer waste my life toward something like this... I will remember this as the biggest shame of my life; begging employers for LMIA which is actually nothing more than a time-waster.

I learned one important lesson from this experience.
Laws made for the minority by few people are very dangerous and will not address everybody. It's best to avoid conflicting with it.

 

[eddie_in_NL]

Oopps!

There you go!

Good to know, I wasn't aware of this. However, this is for immigration purposes, so that a work permit is not needed.

For tax purposes, you have to check CRA website. If you spend more than 183 days in Canada, you're a deemed resident for tax purposes and you will owe tax, no matter where your income comes from. Even if you spend less than 183 days, there may be other conditions that will result in you being treated as resident for tax purposes. Tax rates are fairly high in Canada, so you may well be aware of it. (although to be honest, depending on your income and where you keep the money, they may never find out).

 

[kvrforum]

Good to know, I wasn't aware of this. However, this is for immigration purposes, so that a work permit is not needed.

For tax purposes, you have to check CRA website. If you spend more than 183 days in Canada, you're a deemed resident for tax purposes and you will owe tax, no matter where your income comes from. Even if you spend less than 183 days, there may be other conditions that will result in you being treated as resident for tax purposes. Tax rates are fairly high in Canada, so you may well be aware of it. (although to be honest, depending on your income and where you keep the money, they may never find out).

Yes, I think I can extend my temporary resident VISA for about 6 months which is long enough to build work history and all that.
I'll try to make tax records but if I won't be able to extend my temporary resident VISA, I will just visit some other countries for few months.

 

[dallasboy]

@kvrforum

It is ILLEGAL.

One of my friends was in a similar situation and at the end he decided not to work from Canada while on visitor visa.. The location of client / employer doesn't matter much. What matters is your physical work location. You can't work from Canada if you don't have work permit. Other way around if perfectly fine (for example, if you are Citizen of India, from India, you can work remotely for a project in Canada...and this is all outsourcing companies, call centers, BPO do..)

For example, lets say you have a job is US and your client allows you to work from home (remote), even then, you just can't live in Canada and continue working on same job unless you have work authorization in Canada.

However, practically it will be very difficult for the authorities to catch you unless you provide a conflicting information in future like "I worked for XYZ from 1-Jan-2015 to 31-Dec-2015" AND also "I lived in Canada from 1-July-2015 to 31-Dec-2015 on Vistor visa".

 

[kvrforum]

@kvrforum

It is ILLEGAL.

One of my friends was in a similar situation and at the end he decided not to work from Canada while on visitor visa.. The location of client / employer doesn't matter much. What matters is your physical work location. You can't work from Canada if you don't have work permit. Other way around if perfectly fine (for example, if you are Citizen of India, from India, you can work remotely for a project in Canada...and this is all outsourcing companies, call centers, BPO do..)

For example, lets say you have a job is US and your client allows you to work from home (remote), even then, you just can't live in Canada and continue working on same job unless you have work authorization in Canada.

However, practically it will be very difficult for the authorities to catch you unless you provide a conflicting information in future like "I worked for XYZ from 1-Jan-2015 to 31-Dec-2015" AND also "I lived in Canada from 1-July-2015 to 31-Dec-2015 on Vistor visa".

http://www.cic.gc.ca/english/resources/tools/temp/work/about.asp

No, read this government site carefully.

According to CIC site, working for people in other country remotely in Canada is not considered as "Work" as long as you don't compete with other Canadians for doing it.

"
What kind of activities are not considered to be "work"?
An activity which does not really 'take away' from opportunities for Canadians or permanent residents to gain employment or experience in the workplace is not "work" for the purposes of the definition.
Examples of activities for which a person would not normally be remunerated or which would not compete directly with Canadian citizens or Permanent Residents in the Canadian labour market and which would normally be part-time or incidental to the reason that the person is in Canada include, but are not limited to:

long distance (by telephone or internet) work done by a temporary resident whose employer is outside Canada and who is remunerated from outside Canada;"

 

[cyt0plas]

Does he have to pay tax as a telecommuter?

Yep. Line 104 on the tax return: Foreign employment income

Residents of Canada pay tax on worldwide income, although there are tax treaties and credits that can offset some of those taxes.

 

[cyt0plas]

I found 7 employers who wanted to hire me in Canada. One guy even knew about all immigration procedure and he wanted to help me at heart.
But, all failed due to LMIA and advertisement requirement.
I will no longer waste my life toward something like this... I will remember this as the biggest shame of my life; begging employers for LMIA which is actually nothing more than a time-waster.

I learned one important lesson from this experience.
Laws made for the minority by few people are very dangerous and will not address everybody. It's best to avoid conflicting with it.

So the LMIA system worked exactly as designed.

Canada wanted to keep those jobs for Canadians. Instead of taking their job, you bring money into Canada from abroad, which you will be taxed upon.

 

[cyt0plas]

@kvrforum

It is ILLEGAL.

No, it's not. Others have posted links verifying the policy. Work for a non-Canadian company, where the customers are not in Canada, and where the service is provided over the internet to another country is not considered work in Canada, and as such does not require a work permit.

 

[kvrforum]

So the LMIA system worked exactly as designed.

Canada wanted to keep those jobs for Canadians. Instead of taking their job, you bring money into Canada from abroad, which you will be taxed upon.

Not really. I don't believe it works as designed.

If they don't want foreigners to get a job, they should just block it or make different procedures.

They shouldn't even give a chance or make it look like possible so people can have better life plans.
They should make it appear impossible and exactly address indefinite waiting time for it.
Wasting someone's time in this manner is considered immature.

If I could understand how long it takes for LMIA to actually work out, I probably never tried it. It's not easy to find out until you talk to several people on this forum.

Anyways, it's all good... I wasted a month for it but am no longer doing this.