Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Revenue Canada Roundtable
Canadian Petroleum Tax Society Conference
June 7, 1995
Question 1 - Overseas Employment - CPP
Canadian-based employers may elect to continue to contribute Canada Pension Plan for certain employees working outside Canada. Since the action on the part of the employer to reduce social security costs is not initiated by the employee personally, would Revenue Canada view the participation in Canada Pension Plan contribution a significant residential tie in respect of the employee who has otherwise become a non-resident of Canada as a result of his transfer overseas?
Department's Position
It is a question of fact whether or not an individual is a resident of Canada. Interpretation Bulletin IT-221R2 provides some guidelines in this regard and the individual should complete Form NR73 and send it to the appropriate Tax Services Office for their assistance in determining his residency. In determining an individual's residency for Canadian income tax purposes, all the facts and circumstances of a particular situation have to be thoroughly reviewed and examined. The fact that an employee continues to participate in Canada Pension Plan is one of the factors to be considered although it is not, in and by itself, a determinative factor in determining residency.
Simon Leung
Date: May 5, 1995
File : 5-951165
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995
Email this Content