Mylène Tétreault
Senior Manager | M. Fisc., B.B.A. Fin. | Tax

Hiring foreign workers is one option to help remedy the qualified labour shortage.

During the international recruiting process, employers are concerned about several issues such as legal proceedings, welcome and social integration, but often forget the tax aspect, which can be a source of stress for immigrant workers.

Foreign workers and taxation in Canada and Quebec

It would be a mistake to think that once an employee is in service, there’s nothing more to do. There’s still work with regard to renewing the work permit and starting the process for employee to get their permanent resident status. Above all, it’s important to ensure that foreign workers comply with Canadian and Quebec tax requirements.

Who will notify employees of their tax obligations? Who will help them file their income tax returns? Employers are in the best position to inform newly arrived workers of their tax compliance obligations; when employers fail to do so, immigrant workers may not file their income tax returns on time and sometimes find themselves in trouble or lose out on tax benefits.

Tax obligations and tax credits

Many issues need to be assessed before filing foreign workers’ income tax returns.

  • Is there a tax holiday for this type of worker?
  • Will they be entitled to all of their tax credits?
  • Are they considered a tax resident of Canada or a non-resident?
  • Is there a tax treaty with their country of origin?

Only the aspects specific to the foreign workers situation will determine their tax obligations.

In light of the labour shortage, retaining foreign workers is key. Businesses won’t have any choice but to keep finding innovative retaining strategies for their specialized foreign workforce.

To make integration easier for foreign workers, it is essential for employers to guide them in adapting to their new social environment, but also in understanding our tax system, which can be complex.

Personalized training to your foreign workers

Our team of cross-border tax experts can guide you through this process by providing integrated consultation and tax compliance services for these foreign workers.

We can provide personalized help based on the needs and situations of each foreign worker. Contact our team to meet with our specialists.

24 Jan 2019  |  Written by :

Mylène Tétreault is your expert in taxation for the Québec office. Contact her today!

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Whether you are an employee, a self-employed individual or a professional, you are required to keep a record of your expenses when using an automobile during the course of your professional activities. To assist you, we have developed l’Auto-route to help you record the necessary information.

Whether you are an employee, a self-employed individual or a professional, you are required to keep a record of your expenses when using an automobile during the course of your professional activities. While this may be a tedious and unpleasant activity, it is essential.

We invite you to download l’Auto-route. This Excel file will allow you to enter your personal data for automatic compilation. Click on this link to download l’Auto-route (Excel File)

Should you require more information on the tax impact of using an automobile during the course of your income-generating activities. You will find, among others, a summary of rules related to the calculation of taxable benefits, deductions for automobile expenses and travel allowances, refunds or employer advances.

We can help take you farther!

Please note that l’Auto-route is only available online.

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Christian Menier
Partner | CPA, CA, M. Fisc. | Tax

There is a wide range of tax benefits available to individuals, such as tax credits, tax deductions and employers’ non-taxable benefits.

Here are a few that will help you keep a bit more money in your pockets this year.

Renovation work

Did you have ecofriendly renovations undertaken or have major work on your septic system carried out for your residence or winterized cottage? Did you have repair work done on your secondary residence because of the flooding in certain regions in Quebec between April 5 and May 16, 2017? If so, and you paid the invoices before the end of the year, you can claim one of the following credits on your 2018 tax return:

  • RénoVert credit (20% of eligible expenses in excess of $2,500, for a maximum credit of $10,000);
  • The tax credit for upgrading of residential waste water treatment systems (20% of eligible expenses in excess of $2,500, for a maximum credit of $5,500 per qualifying residence);
  • The tax credit for the restoration of secondary residences (30% of eligible expenses, for a maximum credit of $15,000).

For the first two credits, you will need a signed certificate from your contractor and for the third, you have to have a report by an expert in damage assessment.

Gift from your employer

Did you receive a non-monetary Christmas gift from your employer valued at $500 or less? For Quebec purposes, you don’t need to declare a bonus or gift of less than $1,000 per year. For federal purposes, the limit is $500. So, go ahead, let yourself be spoiled.

Generally, goods or services provided or paid by your employer are taxable. There are some exceptions, for example, tuition fees. If you take courses at your employer’s request and the related tuition is paid by your employer, you will not have a taxable benefit.

Capital losses

If you realized capital gains in 2018 and in the past three years and triggered capital losses before the end of the year, you could reduce your tax liability by applying the losses against previous gains.

Donations

Donations to registered charities give entitlement to tax credits. The combined federal and Quebec tax credit rates are 35% of the first $200 in donations and 53% of the excess. Since the deduction is calculated per individual, it’s to a couple’s benefit to combine them under one tax return.

This article was published on December 31, 2018 in the Journal de Montréal and Journal de Québec (in French). Christian Menier is the new columnist for the Argent – Dans vos poches column.

 

09 Jan 2019  |  Written by :

Christian Menier is a partner at Raymond Chabot Grant Thornton. He is your expert in taxation for...

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Adviser Alert – January 2019

The Grant Thornton International IFRS team has published the 2018 edition of Navigating the changes to International Financial Reporting Standards: A briefing for Chief Financial Officers.

This publication has been designed to provide chief financial officers high-level awareness of the recent changes that will affect companies’ financial reporting in the future.

This publication covers both new standards and interpretations that have already been issued, and new amendments made to existing ones, giving brief descriptions of each.