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Expatax Services Ltd.
Laurie Yoon, C.P.A., C.A. |
Taking care of your taxes wherever your travels may take you.....
Specialist in Personal Income Taxes |
Canadians working abroad...
When Canadians start working abroad questions of residency arise. An hour or two of advice up front can save you a lot of grief by allowing you to organize your affairs properly to take maximum advantage of the tax rules and avoid any pitfalls that may not be obvious even to experienced international workers.
Short Term Workers
Short term workers have a set contract of less than two years but often only a matter of weeks or a few months. While I might be able to convince the Canada Revenue Agency that you are a non-resident if your contract is only a few weeks or months it is very difficult to do so. Generally speaking to cease Canadian tax residency you must take your family with you and not have a house available for your use in Canada while you are gone. The Canada Revenue Agency used to have an administrative position that you also had to be gone a minimum of 24 months but they have backed off on that and will allow much shorter periods. If you have a very short period of non-residency - only weeks or a few months for example - the Canada Revenue Agency is likely to challenge it and short of a court challenge to their position it is very difficult to get them to back down once they have decided that you are resident.
Rotational Workers
Rotational assignments are when the worker "rotates" between home and work, usually in set periods of three weeks home and nine weeks at work or something similar. This happens frequently in the oil and gas industry when the worker is going off to someplace somewhat unpleasant or dangerous and the family stays behind in Canada. Short term or rotational workers are not eligible to cease Canadian tax residency but may have many complicated issues that make it difficult for the average rotational worker to complete his or her own tax return.
Tax Services for Short Term and Rotational Workers
I can help you determine the tax implications of a short term or rotational assignment overseas and ensure that you pay the least amount of tax overall possible. This includes determining ahead of time what your tax burden will be and helping you plan so that there are no nasty surprises when your tax return is filed.
In addition to counseling services, I offer full Canadian tax return preparation services while you are on your international assignment. This includes a resident Canadian tax return with the specialized items that you may have such as foreign tax credits. If you are going to the U.S. I can also provide full U.S. tax return preparation services as required. This includes determining whether you should be filing a resident or non-resident U.S. tax return based on the tax rules in the U.S.-Canada Income Tax Treaty.
Short Term Workers
Short term workers have a set contract of less than two years but often only a matter of weeks or a few months. While I might be able to convince the Canada Revenue Agency that you are a non-resident if your contract is only a few weeks or months it is very difficult to do so. Generally speaking to cease Canadian tax residency you must take your family with you and not have a house available for your use in Canada while you are gone. The Canada Revenue Agency used to have an administrative position that you also had to be gone a minimum of 24 months but they have backed off on that and will allow much shorter periods. If you have a very short period of non-residency - only weeks or a few months for example - the Canada Revenue Agency is likely to challenge it and short of a court challenge to their position it is very difficult to get them to back down once they have decided that you are resident.
Rotational Workers
Rotational assignments are when the worker "rotates" between home and work, usually in set periods of three weeks home and nine weeks at work or something similar. This happens frequently in the oil and gas industry when the worker is going off to someplace somewhat unpleasant or dangerous and the family stays behind in Canada. Short term or rotational workers are not eligible to cease Canadian tax residency but may have many complicated issues that make it difficult for the average rotational worker to complete his or her own tax return.
Tax Services for Short Term and Rotational Workers
I can help you determine the tax implications of a short term or rotational assignment overseas and ensure that you pay the least amount of tax overall possible. This includes determining ahead of time what your tax burden will be and helping you plan so that there are no nasty surprises when your tax return is filed.
In addition to counseling services, I offer full Canadian tax return preparation services while you are on your international assignment. This includes a resident Canadian tax return with the specialized items that you may have such as foreign tax credits. If you are going to the U.S. I can also provide full U.S. tax return preparation services as required. This includes determining whether you should be filing a resident or non-resident U.S. tax return based on the tax rules in the U.S.-Canada Income Tax Treaty.
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Equalization Programs
I can also assist with tax equalization programs offered by employers. These are programs typically offered when an employee goes abroad to a higher tax jurisdiction and the company offers to pay any taxes dues at home or abroad that are more than what the employee would have paid had they stayed home earning their regular income. There are many flavours of equalization programs as this is something that is customized by each employer to their own situation and what they are willing to pay in compensation to their employees. Equalization programs can apply to a rotational, short or long term assignment depending on what the employer is offering. |
2012 to 2019 Basic Personal Canadian Tax Return - Due April 30th, 2020If I can access almost everything I need from the CRA website under Represent a Client but you have some other income or deduction slips as well then this is the return for you. Maximum slips allowed before you must have a complex return is 20 per person or 40 per couple including any slips the Canada Revenue Agency has online.
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2012 to 2019 Complex Personal Canadian Tax Items - Due April 30th, 2020If you have rental income, self-employment income or stock accounts with many buys and sells during the year or more than the maximum number of slips for a basic return then this is the return for you. Price per extra item type and you must get a basic tax return as well. |