When Canadian employees of Canadian mining companies work
abroad, a number of tax issues arise for both employer and
employee. With advance planning, and a combination of tax,
employment law and immigration advice, the risks can be managed. So
what are the top tax issues that should be considered by Canadian
mining companies sending Canadian employees on temporary
cross-border work assignments?
1. Residence: Canadian employees
considering a foreign assignment must understand the personal tax
implications. The key issue will be determining whether the
employee will remain a Canadian tax-resident or will become a
tax-resident of the country in which the employee will temporarily
work (the host country). Both domestic tax laws and any income tax
treaty between the two countries must be considered. Generally, the
country in which the employee is considered a tax-resident will
have the right to tax the employee on the employee's worldwide
income, while the other country
