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Visiting Canada -- do I owe income tax?

wasted pixelswasted pixels Registered User regular
edited December 2008 in Help / Advice Forum
I should admit that I'm chuckling a little bit as I write this, because the premise seems crazy to me, but I haven't been able to find anything about this via Google or the CIC website, so:

I'm staying with my girlfriend in Canada as a visitor. I was explicitly clear when I entered the country that I was coming up to visit for a couple of months. I work as a contract employee for a US-based company, and they have no Canadian presence whatsoever. I've asked crossing guards on a few occasions if it's cool that I'm bringing work up with me, and they've been clear that as long as I'm not working for Canadian businesses, it's cool.

So I'm a US citizen (and NOT a Canadian permanent resident of any kind), I'm working for a US company, and I'm getting paid through a US bank. I simply happen to be physically in Canada as a visitor while I'm working. Do I owe the Canadian government income tax? Citing your source when you answer would be a huge help. Thanks!

wasted pixels on

Posts

  • DmanDman Registered User regular
    edited December 2008
    I believe the limit for visiting is 90 days, and I don't think you can't just go across the boarder to get a fresh 90 days. US Drivers license (insurance) and stuff like that will no longer be valid after 90 days. Check your health insurance, but your probably not covered for health/medical stuff after 90 days either.

    As long as your visit is less then 90 days, you shouldn't have to worry about anything.

    If you bring goods across the boarder and sell them, you need to pay tax.

    that stuff aside, you will just need to pay your US income tax as normal. If none of your income is from Canada then you don't need to pay Canadian income tax.

    Dman on
  • ComahawkComahawk Registered User regular
    edited December 2008
    You are fine, as long as you are not working for a Canadian business. Sources wise, I live here, if that helps.

    I can see of no reason anyone would try to make you pay income tax while you are here. This is almost as ridiculous as visiting another university while doing homework and wondering if you get credits there for your time spent doing homework there.

    Comahawk on
  • PeregrineFalconPeregrineFalcon Registered User regular
    edited December 2008
    So I'm a US citizen (and NOT a Canadian permanent resident of any kind), I'm working for a US company, and I'm getting paid through a US bank. I simply happen to be physically in Canada as a visitor while I'm working. Do I owe the Canadian government income tax? Citing your source when you answer would be a huge help. Thanks!

    TL;DR - No, you do not.

    Source:
    Canadian Income Tax Act, Sections 3 & 115 (also sections 4, 115.1 and 253, subsection 2(3) and the definition of "taxable Canadian property" in subsection 248(1) of the Act, and sections 805 and 7400 of the Regulations) via Revenue Canada Interpretation Bulletin IT-420R3.
    1. By virtue of subsection 2(3), a person who was not resident in Canada at any time in a taxation year (in this bulletin, referred to simply as a "non-resident") is subject to tax in that year under Part I of the Act on taxable income earned in Canada as determined under section 115 if, at any time in that year or a previous year, the person

    (a) was employed in Canada,

    (b) carried on a business in Canada, or

    (c) disposed of a taxable Canadian property.

    You fit under none of these, ergo, you are not subject to taxable income earned "while in Canada" - unless you own property in Canada that you sold.
    See, I'm not entirely an asshole.

    PeregrineFalcon on
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  • wasted pixelswasted pixels Registered User regular
    edited December 2008
    That is exactly what I needed, PeregrineFalcon, thanks. :^:
    Maybe you're not all bad.

    wasted pixels on
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