resign and relocate or go on a global secondment – which option is better for declaring non-residency

Question

2020 viewsSeptember 26, 2019Cross Border Tax

0

Anonymous Posted September 24, 2019

I am currently considering relocating to Dubai for 2 years. Given that there is no income tax in that region I want to make sure I meet all criteria to declare non-residency. I have an option to resign and sever all ties to Canada, or I have the option of going on a Company Secondment. I would still sever all ties but, my company would continue to contribute to CPP on my behalf and other health benefits which I would payback on my return. I would also have a guaranteed job upon my return.

If going on a secondment means I cannot declare non-residency then I would consider resigning altogether but it would be nice to know I have a guaranteed job when I return.

1 Answer

score 0 · Answer 1 · 2019-09-26T14:36:25+00:00

Thank you for your question. If you have a guaranteed job when you return to Canada and you continue to receive benefits from a Canadian employer while you are away, the CRA could argue that you did not intend to permanently leave Canada and as such you are a resident of Canada. As a resident of Canada, you will be liable for Canadian income taxes on your global income.

resign and relocate or go on a global secondment – which option is better for declaring non-residency

1 Answer

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