QUESTION: Dear Sir, I am a Canadian Permanent Resident, working (and living) in Peterborough, ON since March'05 but my employer is a US based company. Hence, they wire my salary (without any deductions) to my bank account in Canada every month. I was advised by a tax consultant here that I should do my tax returns as self-employed and should apply for a business number to do the tax filing in Canada. On the other front, my US based employer is sponsoring for US green card and I am wondering if I would end up with any trouble in the later stages of the GC process, when the INS asks for w-2, pay stubs etc. I would greatly appreciate your comments and advice on this subject. Thanks ============================================================================ =========================== david ingram replies: You are not working in the United States and have no tax liability to the United States. A W-2 would be the wrong way to pay you. Your employer has found it inconvenient to set up a Canadian Payroll System for one person that the employer intends to bring to the US so paying you on a contract basis makes sense. Simply file your Canadian return as a self-employed person and pay both halves of the CPP. You should file a T-1 with form 2032 and schedule 8. If you are using your home as an office and your car for business, make sure that you account for those expenses as well on form T2032. If you need help, we look after you by mail, email, fax or courier and you might find it convenient to deal with us so that we are there for you when you do move and have a dual country tax problem. --------------- David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> 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. 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