My question is: Applicable to both US and Canada
QUESTION: I work in the US and have a TN visa. I know that you are not supposed to work for anyone else while I am in the US other then the employer specified on my visa. However, if I were to do some sales for a Canadian company in the US, is there an exception since it is a Canadian company? Perhaps I could just claim the earnings in Canada, even though I am a resident of the US? Thanks.
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david ingram replies:
Ah, you want to cut the baby in half.
First of all, I have to say that I likely know 20 people who are doing what you want to do. I have also being doing this for 39 years now and have never known anyone to be deported or censured for selling for a Canadian Company while in the USA under a TN, H1, L1 or a TD, H4 or other dependent visa. Thousands of you are telecommuting back to Canada for old Canadian employers for instance.
However, I believe that if "push came to shove" you are working illegally unless you jump back and forth across the border.
(Maybe one of my US Border people will jump in here and correct me).
It is perfectly legal for any Canadian to enter the US under B1 status to sell a Canadian (or any non-US product) for a Canadian Company with no business location in the US.
However, when you are already in the USA with a working visa (other than a green card) I believe that you should technically leave the US and re-enter for the purposes of working for the Canadian Company. Then, when you have finished the Canadian Company's business, you would leave and reenter under your TN status.
The big mistake would be to not report the income on your US return. That would be absolute tax evasion.
When you are physically present in the US you are taxable on your world income.
I am putting this out to my list and we will see if anyone wants to add another negative.
The income you are talking about is NOT subject to Canadian income tax and your Canadian employer should NOT withhold any Canadian income tax, EI or CPP.
If you are going ahead, you should likely buy an hour's worth of my time with a phone consultation. I have also put you on the list because other questions that come up might give you a different answer or add to this answer.
Answers to this and other similar questions can be obtained free on Air every Sunday morning.
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Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com.
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