Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
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.
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.