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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101445
Experience:  Lawyer
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I am a Canadian citizen currently working in Azerbaijan. I

Customer Question

Good day,
I am a Canadian citizen currently working in Azerbaijan. I will be away from Canada for approximately 209 days for year 2016 and I hold a temporary resident permit for Azerbaijan. I still have significant residential ties in Canada. I am paid through an Azerbaijani company and they pay my taxes for me in Azerbaijan. I spoke to my company and I requested a tax certificate to prove that taxes are being paid in Azerbaijan. However, they said we do pay your taxes, but, we can not issue a tax certificate as it is company property.
Are you able to tell me if I am liable to pay Canadian taxes on money earned while away? Also, without a tax certificate is this going to be an issue?
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

I don't know the law in Azerbaijan but from a Canadian point of view that makes no sense at all.

In any event, I assume you have to file some sort of Tax Return there.

When you do you will be able to prove from the assessment provided by the government what taxes you paid and that is what you can provide the CRA to obtain your foreign tax credit.

They do not need a tax certificate from your employer.

Customer: replied 1 year ago.
The issue is, my company in azerbaijan pays the taxes for me to the Azeri government. However, they said they are unable to show me how much taxes is paid, or a tax receipt of any sort as it is company property. So how am I supposed to prove to Canada that I paid taxes elsewhere, and I shouldn't be required to pay any canadian taxes?
Expert:  Debra replied 1 year ago.

I understood that to be the issue.

And what I've said is that even though they paid your taxes you have to file a tax return with the government there and then the government there will send you documentation and you use that documentation for the CRA.

And you may still have to pay Canadian taxes. You get a tax credit for what you paid overseas but if the tax paid is not as high as the tax you have to pay in Canada then you are going to have to pay the difference here.