Canada: Tax Considerations For Foreign Personnel Transferred To Canada

Last Updated: April 10 2013
Article by Gloria Geddes

Most Read Contributor in Canada, October 2018

This article discusses certain Canadian income tax implications to a resident of a foreign country who is transferred to work in Canada on either a temporary or permanent basis. The article begins with a discussion of the importance and impact of status as a resident or non-resident of Canada for Canadian tax purposes. This is followed by a review of the Canadian tax treatment of reimbursements of and allowances for relocation costs that are paid by the employer to ensure that the employee and his family are not financially disadvantaged by the transfer. Finally, there is a discussion of some tax planning that may be contemplated both before and after the transfer to Canada.

The discussion is of a general nature only and is not exhaustive of all income tax considerations. The income tax implications will vary depending upon the particular circumstances and professional legal advice should be sought in this regard.

NON-RESIDENT EMPLOYEES COMMUTING TO CANADA

Canadian Income Tax

An employee who is working in Canada but does not become a Canadian resident will generally be subject to Canadian federal income tax on Canadian source income only, including income from employment performed in Canada. If the employee is resident in a country which has entered into a tax treaty with Canada, the treaty may provide for an exemption from Canadian tax on the non-resident employee's Canadian employment income, in limited circumstances. For example, under the Canada-U.S. Income Tax Convention (the "Canada-US Tax Treaty") the income of an individual who is a U.S. resident will not be taxed in Canada on the income from employment performed in Canada in a year if: (i) the remuneration does not exceed $10,000 (Canadian); or (ii) the non-resident is in Canada for 183 days or less in any 12 month period and the remuneration is not paid by, or on behalf of, a Canadian employer. If an individual exercises his duties in Canada for a Canadian company that reimburses a U.S. entity for the employment costs, Canada Revenue Agency ("CRA") considers the remuneration to be paid by the Canadian employer and, therefore, the exemption does not apply.

There are Canadian tax implications for a non-resident employer who sends employees to perform services in Canada for a Canadian client or a Canadian subsidiary of the employer. The non-resident employer will be considered to be carrying on a business of providing the services of its employees in Canada with resulting income tax, goods, services tax/harmonized sales tax (GST/HST), and payroll tax implications, for the non-resident employer. The Canadian tax compliance requirements and tax liabilities for the non-resident employer may be reduced or avoided if a secondment arrangement that follows CRA's guidelines is entered into by the non-resident employer, the employee and a Canadian entity. Under the secondment arrangement, employees of the non-resident employer are "loaned" to and employed by a Canadian subsidiary or other Canadian entity. The Canadian entity takes responsibility for the Canadian payroll remittances for the seconded employee; and is fully responsible for and reimburses the non-resident for any salary and benefits paid by the non-resident to the employee for the services performed in Canada for the Canadian entity. While the secondment arrangement generally provides relief for the non-resident employer from Canadian tax implications and compliance obligations, a seconded employee will generally not be able to benefit from a treaty exemption from Canadian tax, unless the employee is paid less than CDN$10,000 per year (or under some treaties, less than CDN$5,000) for the services performed in Canada. If this treaty exemption does not apply, the employee will generally be able to claim foreign tax credits against the employee's tax liability in his or her home country for the Canadian income tax payable.

Canada Pension Plan Contributions

In general, residency is not a requirement for coverage under the Canada Pension Plan ("CPP"). An employee transferred into Canada who reports to work or receives payment from an establishment of the employer in Canada is covered by CPP. However, the employee may also be covered under the social security system in his or her country of residence. Such dual coverage is generally dealt with in a reciprocal social security agreement between Canada and the employee's country of residence.

Payroll Deductions

Where a non-resident employee exercises employment in Canada for any period of time, the employer (whether Canadian or non-resident) is required to withhold income tax in respect of that employment, even if the employee is in Canada for a short time and the remuneration received by the employee is exempt from Canadian income tax under a tax treaty. However, where a treaty exemption applies, application may be made to CRA for a waiver from the withholding tax that must otherwise be deducted and remitted.

A waiver from withholding tax will not relieve an employer from the obligation to withhold and remit CPP contributions and employment insurance ("EI") premiums under the Employment Insurance Act. However, CPP contributions will generally not be required, if the employer is not a resident of Canada and does not have an establishment in Canada1. For a Canadian resident employer, CPP contributions are generally not required if a certificate certifying that there is social security coverage of the employee in another country is provided to CRA under the relevant social security agreement between Canada and that other country.

With respect to EI premiums, if premiums are payable under the employment insurance laws of another country in respect of the services in Canada performed by employees who are resident in that country, such services should be treated as non-insurable employment for EI purposes and, as such, exempt from EI premiums.2

Non-Resident Income Tax Returns

A non-resident individual who performs employment services in Canada is required to file a Canadian income tax return by April 30 of the year following the year in which the services were performed. For purposes of the tax filing, the individual will receive a T4 information slip from the employer that will indicate salary, wages, benefits received in the year, as well source deductions withheld and remitted by the employer. The individual may be entitled to refund of tax that was withheld (if, for example, the individual was exempt from Canadian tax under an applicable tax treaty) or have a balance owing if insufficient tax was withheld and remitted by the employer.

EMPLOYEES WHO BECOME CANADIAN RESIDENTS

An employee who is permanently transferred to Canada and becomes a Canadian resident for purposes of the Act will be liable for Canadian tax on his or her world-wide income from all sources, within and outside Canada, from the date he or she becomes a resident of Canada.

Canadian Residency Tests

There are two circumstances in which an individual can become a resident of Canada for tax purposes. The first is where the individual is determined to be "ordinarily resident" in Canada based on the number of economic, residential and social ties within Canada. An employee will become a resident of Canada at the time in the year that the threshold of being "ordinarily resident" in Canada is crossed. The Income Tax Act (Canada) provides rules for computing taxable income of an individual who is non-resident for part of a taxation year and is a Canadian resident for the balance of the year.

The second circumstance in which an individual can become resident in Canada in a year is where the individual has "sojourned"3 in Canada for an aggregate of 183 days or more in the year. Canada's income tax laws deem a person who has "sojourned" in Canada for an aggregate of 183 days or more in a year to be resident in Canada throughout that year (in other words from January 1 of that year).4

Treaty Tie-Breaker Rules and Residency

It is possible for an individual to be considered resident for tax purposes in more than one country at the same time; for example where an employee meets the Canadian test for "ordinarily resident" but he or she is also a resident of another country under its domestic laws. In those circumstances, if the other country has entered into a tax treaty with Canada, the determination of residency status for Canadian tax purposes will ultimately depend upon the application of the tie-breaker tests in that tax treaty. If the individual is considered resident in the other country under the relevant tax treaty, that individual will be treated as a non-resident under Canada's domestic tax laws, even though the individual would otherwise have met either of the above described Canadian residency tests.

The tie-breaker rules in Canada's tax treaties generally form a hierarchy. For example, under the Canada-US Tax Treaty the following rules apply to determine residence for treaty purposes:

  1. the individual is deemed to be a resident of the country in which he has a permanent home available;
  2. if a permanent home is available in both countries, or in neither, the individual is deemed to be resident in the country with which his or her personal and economic relations are closer (referred to as the "centre of vital interests");
  3. if the country in which the individual's centre of vital interests cannot be determined, the individual is deemed to be a resident of the country in which he has a "habitual abode";
  4. if the individual has a habitual abode in both countries, or in neither, the individual is deemed resident in the country of which he or she is a citizen;
  5. if the individual is a citizen of both countries, or neither, the competent authorities for both countries will settle the matter by mutual agreement.

Step-up in Cost Base of Property on Becoming a Canadian Resident

At the time an individual becomes a resident of Canada, the individual is deemed to have disposed of and reacquired most of his or her property at its fair market value immediately before becoming resident. This deemed disposition does not give rise to Canadian tax and generally has a beneficial result. It provides a step-up in the cost base of the property for purposes of calculating future Canadian capital gains or losses on a subsequent disposition of the property.

As a result of this deemed disposition and step-up, gains or losses accrued prior to the date of Canadian residency will not be subject to Canadian tax. Property that is excluded from the step-up in cost base includes taxable Canadian property, such as real property in Canada (which is already subject to tax in Canada) and rights under stock options or stock purchase plans.

Tax Consequences of Ceasing to Be a Canadian Resident

Subject to certain exceptions discussed below, an employee who is transferred to Canada and becomes a Canadian resident will be subject to departure tax upon ceasing to be a Canadian resident. The employee will be deemed to have disposed of and reacquired most of his or her property at its fair market value immediately before departure for Canadian income tax purposes. The tax liability arising from the deemed disposition arises at the date of departure, although payment of the tax may be deferred until the property is sold, provided that acceptable security is furnished to CRA by the departing employee. Property excluded from the deemed disposition includes real property situated in Canada, certain pension rights, interests in most employer-sponsored benefit plans and employee stock options. Items of personal-use property, such as furniture, clothing and cars are also excluded, provided the fair market value of the item at the time of departure is less than $10,000.

An exception from departure tax is available for individuals who are not resident in Canada for a period (or periods) totalling 60 months or more during the 10 years immediately preceding departure. The exemption applies to property owned by the employee at the time the employee last became resident in Canada or property acquired by inheritance or bequest after he or she last became resident. Accordingly, an employee who was not previously resident in Canada prior to the transfer may benefit from this relieving provision if the assignment is for a period that is less than 60 months.

Foreign Tax Credits

If an employee becomes a resident of Canada, in computing Canadian income tax on income from employment, the employee will generally be able to claim foreign tax credits for tax paid in another country on the same income.

Many of the foreign countries that have entered into tax treaties with Canada do not have a step-up in the cost base of property when an employee leaves Canada and becomes a resident of that country. As a result, the gain accrued while the employee was resident in Canada, and subjected to departure tax on emigration, would be taxed in the foreign country only on the actual disposition of the property. If the foreign country does not permit a foreign tax credit in the year of disposition for the Canadian taxes paid at the time of departure, there will be double tax. In its tax treaty negotiations, Canada seeks to have other countries allow a step-up in the cost base to fair market value on immigration to prevent such double taxation when the property is later sold. This has now been agreed in most of Canada's recently signed treaties or protocols, including the United States5 and the United Kingdom.6 If such step-up is not permitted under an applicable tax treaty, the Income Tax Act (Canada) provides some foreign tax credit relief from Canadian tax that arises in the year of departure for post-departure foreign taxes in a country with which Canada has entered into a tax treaty.

COMPENSATION FOR RELOCATION COSTS

As a result of the transfer to Canada, the employee will incur a number of relocation costs that would not have arisen if the employee remained in his or her home country. These additional costs are often picked up or reimbursed by the employer. Both the employer and the employee benefit when these payments are structured in a way that minimizes their impact on the employee's Canadian tax liability.

Taxable Benefits From Employment

Benefits received in respect of employment are generally taxable under the Income Tax Act (Canada). As payments intended to compensate an employee for the costs of moving to Canada are received by virtue of employment, the determination of whether or not the payments are taxable generally turns on whether such payment results in a "benefit" received or enjoyed by the employee. The term "benefit" in this context, refers to an economic benefit. Where an employee is required to spend money in the course of the employment (for example, to pay a business expense) the reimbursement of that expenditure does not result in an economic benefit to the employee. The employee is only reimbursed for the amount he or she would otherwise be "out of pocket". On the other hand, where the payment reimburses what would otherwise be a personal expenditure of the employee, the payment "adds to the pocket" of the employee and results in a benefit that is subject to tax.

Different Tax Treatment of Reimbursements and Allowances

It is generally accepted that reasonable reimbursements of out-of-pocket expenses incurred in the course of moving to another workplace are not taxable benefits. An allowance, on the other hand, will generally be included in the employee's Canadian employment income.7 This will be the case, even if the allowance is paid before the employee is transferred to Canada, since it relates to the future services to be rendered in Canada.

One specific legislative exemption from the inclusion of an allowance in income is a reasonable allowance for travel expenses for travelling away from the city where the employer's establishment is located in the performance of the duties of the employee's office or employment. Accordingly, an allowance for travel expenses may be exempt from Canadian tax, if it is paid to a non-resident employee who is employed by a foreign employer and who regularly commutes to Canada to perform his or her duties.

Amounts paid by an employer in respect of increased rent are treated as an employment benefit, regardless of whether the payments are made in the form of an allowance or a reimbursement.

Moving Expenses

Moving expenses incurred by a non-resident employee in making a move from a foreign country into Canada are not deductible from taxable income earned in Canada. However, a reimbursement by the employer of actual, reasonable expenses incurred in moving the employee, his family and his household contents to Canada will generally not be included in the employee's income from employment for Canadian tax purposes and will be deductible by the employer.

This treatment is not limited to relocations within Canada. For this reason, reimbursements of reasonable moving expenses incurred as a result of the move to Canada are generally included as part of a transferred employee's compensation package. The following are examples of costs the reimbursement of which should not give rise to a taxable benefit:

  • the cost of house-hunting trips to the new location, including child and pet-care expenses while the employee is away;
  • traveling costs (including a reasonable amount spent for meals and lodging) while the employee and members of the employee's household are moving from the old residence to the new residence;
  • the cost of transporting or storing household effects while moving from the old residence to the new residence;
  • costs to move personal items such as automobiles, boats, or trailers;
  • charges and fees to disconnect telephones, television aerials, water, space heaters, air conditioners, gas barbecues, automatic garage doors, and water heaters;
  • charges to connect (and disconnect) and install utilities, appliances, and fixtures;
  • adjustments and alterations to existing furniture and fixtures to arrange them in the new residence, which include plumbing and electrical changes in the new residence;
  • automobile licences, inspections, and drivers' permit fees, if the employee owned these items at the former location;
  • the cost to revise legal documents to reflect the new address;
  • reasonable temporary living expenses while waiting to occupy the new, permanent accommodation;
  • long distance telephone charges that relate to selling the old residence; and
  • property taxes, heat, hydro, insurance, and grounds maintenance costs to keep up the old residence after the move, when all reasonable efforts to sell have not been successful.

Reimbursements of amounts paid in respect of the cost of the financing of, or the use of a house is an employment benefit, even though these costs are incurred coincident with, or as a result of, the move. Such taxable benefits include, for example, reimbursements of mortgage interest paid by an employer in connection with an employee's old residence and payments for bridge financing and mortgage insurance premiums for the new residence. Similarly, a reimbursement of a loss on the sale of the employee's old home in a foreign country would be considered a taxable benefit of employment.

Compensation for Social Security Costs

If Canada has not entered into a social security agreement with the country of origin, the employee may be obliged to make CPP contributions and to also contribute to the social security plan in the country of origin. Any additional compensation paid by the employer to compensate for the doubling up of social security payments would be considered a taxable benefit for Canadian tax purposes.

Compensation for Increases in Cost of Living

Employees relocating to Canada may be faced with higher living expenses than in their home country. For example, the cost of gas and groceries may be higher in Canada. A cost of living adjustment payment may be paid by the employer to compensate the employee for such increases in the cost of living in Canada. CRA considers that these payments are either an allowance for personal or living expenses or a taxable benefit of employment and must be included in taxable income.

Compensation for Foreign Exchange Fluctuations

An employer may want to compensate an employee for losses resulting from foreign exchange fluctuations in Canada. If the value of the Canadian dollar goes down, the employee would be compensated with an increase in salary to reflect the amount of remuneration he or she was intended to receive at the time the employment in Canada commenced. The employee will be particularly concerned with foreign exchange losses, if he or she is required to make periodic payments in the country of origin, such as child support or mortgage or other loan repayments. Any compensation for foreign exchange will be subject to Canadian tax as additional salary or a taxable benefit of employment.

Employer Loans

There is no taxable benefit in respect of the amount of a loan made by an employer to an employee (who is not a shareholder of the employer), as long as it is clear that the amount received by the employee is a bona fide loan and not merely an advance on account of future earnings of the employee.

An interest benefit may be imputed on a low or no interest loan made to an employee, including a loan made to the employee in respect of the purchase of a home in Canada. The amount of the interest benefit that will be included in the employee's income in a particular year is the total of (i) interest on the loan computed at the prescribed rate during the period the loan is outstanding (the prescribed rate of interest is revised in each calendar quarter) and (ii) the amount of interest paid in the year by the individual's employer (or intended employer) or a person related to the employer, less the total of (iii) the interest paid by the employee during the year or within 30 days after the end of the year, and (iv) any amount under (ii) above that the employee reimburses during the year or within 30 days after the end of the year.

Tax Equalization Payments

A tax equalization payment may be made to compensate an employee for a higher tax burden where there is a move from a lower tax jurisdiction to Canada. The equalization payment is intended to put the employee in the same position for tax purposes, as if he or she had continued to be employed in the lower tax jurisdiction. Such payments received as a reimbursement or an allowance in respect of an employee's tax liability are treated as additional income from Canadian employment and are subject to Canadian tax.

TAX PLANNING CONSIDERATIONS

Receiving Payments Before Becoming a Resident of Canada

Any foreign income earned and paid prior to an employee becoming resident in Canada will generally not be taxable in Canada. Once the employee becomes resident in Canada, he or she will be taxable on his or her world-wide income received during the period of Canadian residency, even though the income was earned while a non-resident. For that reason, the employee will generally want to arrange to receive all remuneration due to the employee in respect of foreign employment before becoming a Canadian resident. A bonus in respect of employment services performed in the country of origin received prior to the transfer of the employee to Canada will not be subject to tax in Canada, as long as it is reasonable to conclude that the bonus relates to past services performed in the country of origin and not to the future services to be rendered in Canada.

If the Canadian marginal tax rate is higher than the foreign tax rate paid by the employee in the employee's home country, it will generally be to the advantage of the employee to delay becoming a resident of Canada until late in the year, in order to reduce the amount of world-wide income that will be subject to the higher rate of tax in Canada in that year.

Consider Whether to Sell or Retain the Home in the Foreign Country

There are a number of considerations that are taken into account by a transferred employee in deciding whether to sell or retain the family home in the employee's country of origin. As discussed above, in determining the country of residence for tax purposes, the location of a person's permanent home is one of the key indicia of residency under both domestic law and the treaty tie-breaker rules.

If the employee is intending to remain in Canada on a permanent basis, the home in the country of origin is often sold prior to the move to Canada or soon after coming to Canada. If the employee decides to sell the home prior to becoming a Canadian resident there will be no Canadian tax consequences.

There may be valid reasons for wanting to retain the home during the period of Canadian residency, such as low market values, the ability to earn substantial rental income or emotional ties. If the employee decides to keep the home in his former country of residence, then on becoming a Canadian resident, the employee's home will be subject to the deemed disposition rules discussed above and will therefore, have a stepped-up cost base for Canadian income tax purposes. If the home is sold after becoming a resident of Canada, the employee will only pay Canadian income tax on the gain on the sale of the home, if any, that accrues during the time the employee is resident in Canada. There may, however, be tax consequences in the employee's home country which must also be considered. Most countries retain the right to impose tax on non-residents on gains on the disposition of real property situated within that country that are calculated on the basis of the original cost of the property.

Purchasing a Home in Canada

If a home is purchased in Canada and the Canadian resident employee and his family ordinarily live in that home throughout the period of ownership, any gain on a subsequent sale of the home will not be subject to Canadian tax if the home is designated as the family's "principal residence" for each year of ownership. A "principal residence" is a home that is owned and ordinarily inhabited by a Canadian resident or by his or her spouse or children.

The principal residence exemption reduces the amount of gain realized on the sale of a principal residence based on the number of years during which the owner is resident in Canada and ordinarily inhabits the home. An employee and his family may only designate one principal residence. There is no requirement that a principal residence be situated in Canada. However, the years in which the home in a foreign country was owned prior to becoming a Canadian resident will reduce the amount of the gain that can be sheltered with the exemption. As a practical matter, the employee will normally want to designate the Canadian home as his or her principal residence.

Pension Plans

If the employee becomes a Canadian resident, it may be possible to transfer pension assets from a foreign pension plan into a Canadian registered pension plan ("RPP") or registered retirement savings plan ("RRSP") without triggering immediate tax, if certain conditions are met. If the transfer is made to an RPP, it is also necessary for the terms of the RPP to permit acceptance of the transferred funds and the transfer must be approved by the CRA.

Registered Retirement Savings Plan ("RRSP")

An employee who becomes a resident of Canada, whether on a temporary or permanent basis, should consider setting up an RRSP. An RRSP is a tax-deferred account designed to provide retirement savings. Any resident of Canada under the age of 71 who has earned income may establish an RRSP and make tax-deductible contributions that are indexed each year. For example, contributions of up to $23,820 of Canadian earned income may be made for 2013 and $24,270 for 2014. RRSPs are prohibited from holding certain types of investments.

If the employee is on temporary assignment, the withdrawal of amounts after the employee resumes residence in the country of origin will be subject to a 25% withholding tax, which will generally be less than the marginal rate of Canadian tax imposed during the assignment in Canada.

Tax-Free Savings Account ("TFSA")

An employee who becomes a Canadian resident may also want to set up a TFSA as a general all-purpose savings vehicle. The annual contribution for 2013 is $5,500. Contributions are not tax-deductible but investment income earned in the TFSA is tax-free. Like RRSPs, TFSAs are prohibited from holding certain types of investments.

Non-residents are generally not taxed on earnings in a TFSA and wthdrawals of contributions and investment income is generally tax-free. However, any contributions made by an individual while a non-resident is subject to a tax of 1% per month until the individual withdraws and designates it as a withdrawal of the non-resident contribution.

Stock Incentives

If an employee has participated in a stock option plan in the country of origin, consideration must be given to differences in the application of the tax rules in Canada and in the country of origin, if the employee exercises the option after becoming resident in Canada.

Consideration should be given to exercising stock options related to employment outside of Canada prior to becoming a resident of Canada. Canada does not provide any relief from Canadian tax for benefits on options granted when the employee was a non-resident of Canada and exercised when the employee is a Canadian resident. Tax will be imposed in Canada on the benefit equal to the difference between the exercise price (plus the amount, if any, paid for the option) and the value of the shares at the time the employee stock option is exercised, subject to a one-half deduction of the benefit if the exercise price of the options is fixed at an amount that is not less than the fair market value of the shares at the date the options are granted and certain other conditions are satisfied. This will be the case, even if the stock option relates to employment exercised outside Canada prior to becoming a Canadian resident.

If both Canada and the country of origin tax the same income in the year the option is exercised, the tax paid in the country of origin may be credited against the Canadian resident employee's Canadian tax. If Canada and the country of origin impose tax in different years, or on different amounts, there will be a mismatch of the foreign and Canadian tax for foreign tax credit purposes and the potential for double tax on the stock option benefit. For example, Canada generally imposes tax in the year the employee acquires beneficial ownership of restricted shares on the exercise of a stock option. In the United States, even though the restricted shares are acquired, tax may not be imposed until the restrictions are lifted.

If the employee is granted stock options during the course of employment in Canada and leaves Canada before exercising those stock option rights, the employee will be subject to tax in Canada on the benefit deemed to be received on the exercise of the option and the acquisition of the shares after leaving Canada, unless relief is provided under the relevant tax treaty.

Canada's Departure Tax and Temporary Transfers

As discussed above under the heading "Tax Consequences of Ceasing to Be a Canadian Resident", an exemption from Canadian departure tax applies where an employee is resident in Canada for a period (or periods) totalling 60 months or less during the past 10 years preceding departure. In those circumstances, the departure tax will not apply to property that was owned at the time the employee last became resident in Canada or was inherited during the time the employee is resident in Canada.

Depending on the nature and extent of property owned by the individual and the expected growth in value of that property after becoming a resident of Canada, an employee expecting to return to his or her home country will want to limit his or her period of residency in Canada to less than 60 months in order to take advantage of the exemption from departure tax for short term residents. If the employee is required to stay in Canada for longer than 60 months, the potential impact on the employee of the departure tax liability should be taken into account in negotiating the terms of the transfer to Canada.

There is a potential for double tax, subject to possible relief under a tax treaty, if the gain on property accrued to the date the employee left Canada is subject to Canadian tax on departure and the same gain is taxed a second time in the home country when the property is subsequently sold. Before leaving Canada, the employee should consider the impact of the departure rules on the property owned by the employee and take steps to safeguard against the potential for double tax. For example, consideration could be given to selling the property prior to leaving Canada and repurchasing the same or similar property after becoming a resident in the home country.

CONCLUSION

The cross-border transfer of an employee to Canada, whether on a short-term or permanent basis, gives rise to a number of Canadian tax implications. These tax implications should be addressed and appropriate tax planning done prior to the actual move in order to avoid unexpected adverse tax consequences that impact on the financial position of the employee and the employment relationship.

Footnotes

1 Section 22(1) of Part II of the Canada Pension Plan Regulations. An "establishment in Canada" for this purpose includes any place or premises in Canada owned, leased or licensed by the employer and where (i) the employer or one or more of its employees works or reports for work; or (ii) at which one or more of its employees are paid.

2 Section 7(d) of the Employment Insurance Regulations.

3 The meaning the Courts have ascribed to "sojourn" is "temporary residence" or "residence for a temporary purpose".

4 A person who becomes "ordinarily resident" in Canada at some point in the year will not be deemed resident in Canada throughout that year under the sojourning rule.

5 Article XIII(7) per 2007 Protocol.

6 Article 13(10).

7 As an administrative matter, CRA treats a non-accountable allowance for incidental relocation or moving expenses of up to $650 (Cdn) to be a non-taxable reimbursement of expenses that an employee incurred because of a move. To come within this administrative exception, the employee must certify in writing that he or she incurred expenses for at least the amount of the allowance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions