Taxes

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xheadsailor
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Taxes

Postby xheadsailor » Mon Dec 11, 2017 3:30 pm

What's the best way for a Canadian, working contracts on foreign ships/foreign owners, to deal with taxes? Moving out of the country is not an option for me so need to find a way to put more money in my pocket.

Also, I would appreciate if anyone could recommend a tax accountant in the GTA who is experienced in dealing with seafarer taxes.

Thanks.

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The Dieselduck
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Re: Taxes

Postby The Dieselduck » Mon Dec 11, 2017 7:31 pm

You just need to be a non resident of Canada, look at Vancouver, a whackload of Chinese Astronaut families are settled there, why not follow that example. You just cant be a Resident, but you can still be a Citizen.
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JollyJack
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Re: Taxes

Postby JollyJack » Mon Dec 11, 2017 8:51 pm

Non resident is the only way to go. If you have dual Can/UK citizenship, inform the UK taxman you are resident in UK. You will come under the Merchant Shipping Act and if you are 181 days out of UK you won't pay UK tax. Inform CRA you are no longer resident in Canada, show them the letter from UK tax office that you are liable for British tax, and there ya go. You don't need to spend any time in the UK, you can vacation, on your days off, wherever you choose, whether it be Spain, Mexico, Cuba or Canada, on tourist visas.
Discourage incest, ban country "music".

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Big Pete
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Re: Taxes

Postby Big Pete » Tue Dec 12, 2017 6:44 am

Nothing in life is certain, except Death and Taxes, they will get you one way or another, Governments all have one thing in common, they think that they can spend the money we have earned better than we can.
It is always better to ask a stupid question than to do a stupid thing.

xheadsailor
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Re: Taxes

Postby xheadsailor » Sun Dec 24, 2017 2:13 pm

Thanks for the replies. I only have a Canadian passport so can't really go to the UK or anywhere else.

I am exploring the non-resident route so if anyone has any experiences to share it would be appreciated.

Would someone living abroad need to come back to Canada every two years for a TC medical? Or can they be done in other countries? What about licence renewals, can they be done from outside Canada?

Thanks.

xheadsailor
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Re: Taxes

Postby xheadsailor » Sun Dec 24, 2017 2:14 pm

Merry Christmas to everyone!

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Big Pete
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Re: Taxes

Postby Big Pete » Mon Dec 25, 2017 4:21 am

Hi Xhead,
Lots of Canadian Masters and other Officers working on UK flag Platform Supply Boats etc in the North Sea.
You don't need a UK passport or anything else for Foreigners to come and work here.
I know Gulfmark Offshore are looking for people and they have employed Canadians as Masters and Chief Engineers in the past, if you have a Second Class Certificate Foreign going you will be able to get a Second Engineers job over here. Google their website and you can apply online. They will pay your fares over from Canada and back each 5 week tour of duty, followed by 5 weeks leave, if you are interested.
I imagine that if you look on the Transport Canada website they will have a list of approved Medical examiners in the UK.
If you live in Canada and work in the UK all your earnings for work and paid leave will be classed as earned in the UK by the Canadian Tax authorities. As far as the UK authorities are concerned so long as you always have more Midnights outside the UK 3 mile limit than you have inside you don't have to pay any UK income Tax on your earnings.
Hope this helps, and Merry Xmas

Big Pete.
It is always better to ask a stupid question than to do a stupid thing.

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JollyJack
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Re: Taxes

Postby JollyJack » Mon Dec 25, 2017 5:24 pm

Medicals and renewals can be done at the Canadian Embassy in the country of residence. You have to get in touch with AMSPE, 330 Sparks St, Ottawa. Phone number is in the book, postal code and full address are in TP 2293 and in the MPRs (I think, but TP 229 for sure)
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Atlantic
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Re: Taxes

Postby Atlantic » Tue Dec 26, 2017 5:15 am

Hi Xhead,

If you live in Canada you have to pay tax here. The best way to do that is to put part of your pay aside and pay installments 4 times a year. If you don't they will ask for interest on the money you owe in taxes. If you work in an other country and pay tax there you can in most cases subtract that amount from what you need to pay in Canada. If you move out of the country you will lose your medical coverage in Canada eventually and will not earn any thing towards your CPP. Its tempting to move but long term is it the best choice?


Merry Xmas to all from a stormy sea 70 kn wind gusts last night

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Big Pete
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Re: Taxes

Postby Big Pete » Tue Dec 26, 2017 9:56 am

Hi Xhead, as I understand it, what Atlantic says is not strictly true. If for instance you continue to live in Canada but worked for a UK based company you would be covered by the reciprocal Tax agreement between the two Countries, so long as you paid the Tax due in the UK on the earnings in the UK, you would not have any additional Tax liability in Canada. However, for Seamen working in the UK who spend less than half the year inside the UK 3 mile limit they have no UK income Tax liability on their earnings as a Seamen. If you have other earnings from another job as well, or large amounts of investment income it becomes more complicated.
Best thing to do is talk to someone that has done this.
I also understand that the UK and Canada have reciprocal arrangements for the State Old Age Pension, if you pay UK National Insurance contributions, which would be deducted from your pay automatically by UK employers, these contributions will count towards a Canadian Pension if you retired in Canada and your Canadian contributions would count towards a UK pension if you retired in the UK.
I think you could also make contributions into a UK based, defined contribution Pension scheme ( which all UK employers are required to offer to their employees, if you were working in the UK.
But you definitely need to talk to someone who has done it or an expert on International Seafarers Taxation and Pensions.

I hope this helps.

BP
It is always better to ask a stupid question than to do a stupid thing.

xheadsailor
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Re: Taxes

Postby xheadsailor » Fri Jan 19, 2018 3:36 pm

Thanks for all the replies. I'm looking at the non-resident option so if anyone has more info it would be appreciated.


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