The Client is an Italian Oil & Gas Consulting Company with projects in North Africa, Middle East and North America.
The Client won a project with one of the major Italian Oil & Gas Companies to provide construction services to an Oil & Gas project in Canada. The client was planning to use their own Italian staff and a series of international contractors for this project and needed to get 25 of these engineers onsite quickly and for periods of up to 18 months. The contractors were Italian, Portuguese, French and Indian so had to come from different parts of the globe. The customer also wanted confirmation that any individual working in their site was fully compliant with local employment, taxation and immigration regulations.
They needed a company that could sponsor these candidates on local Canadian Work Permits, employ and payroll them locally.
The Client was not experienced with Canadian taxation or migration regulations and was not incorporated in Canada. They were unable to payroll or sponsor their staff in Canada. They required a company not only with an entity in Canada but one with the capacity to sponsor international contractors on Canadian Work Permits, to employ and pay-roll the contractors in Canada and handle issues with bilateral tax agreements between the two countries.
The Client contacted Contractor Taxation Ltd through our website and provided an overview of their business and the situation they were facing. Contractor Taxation then engaged our Canadian partner company, overviewed the Clients requirements and we were able to provide a solution, quote and timeline to the Client within 24 hours.
The local partner proposed sponsoring the international hires through the Canadian ALMO Work Permit process on specific job titles that ensured they would be both compliant with Canadian Work Permit regulations but also at an earnings level that kept the client within their budget to ensure the project would be as profitable as possible.
Once the Client agreed with the costing and timeframes our Canadian partner lodged the Advert on the relevant Canadian website for the required 2 week period during which time they collated the requisite documentation from the client and the individual candidates in order to be ready to lodge the ALMO applications. As soon as the advertisement period had lapsed they lodged the ALMO applications and they were approved in 10 days. Once approved the Canadian Work Permit documentation was sent to each individual candidate. At the airport on entry to Canada they presented this document to the immigration officer and the officer then printed the actual permit.
The Client worked with Contractor Taxation Ltd and our local Canadian partner to agree a specific contract template which ensures the candidates are bound by the necessary contractual terms.
Once the engineers entered Canada our local partner assisted them in setting up local bank accounts, secured Medical and Health Insurance, secured them social security numbers (SIN’s), fiscal registration and where required accommodation.
The candidates were pay-rolled every 2 weeks as per the employment regulations in Alberta. We were able to tax manage the engineers income by applying the ‘Special Worksite Exemption’ (Living Away from Home Allowance) ensuring each worker retained as much of their gross income as was possible under Canadian tax regulations.
The local partner also provided the engineers with end of financial year and end of assignment statements to use with their tax reporting. Additionally we offered our network of specialist providers who can provide the contractor with assistance in travel & health insurance and tax reporting within their home country.
The Client was able to support their project in Canada with the requisite engineers and meet all expectations of their client on site in Canada whilst ensuring full compliance with the Canadian tax and immigration authorities. By using this deal as a reference point they also won several other projects with the same major Italian Oil & Gas Company around the globe. Projects that we are also assisting them with.
Products and services the company used
- International tax advice
- Calculation of net earnings
- Work Permit Application and Sponsorship
- Payment through local payroll
- Calculation, filing and reporting of tax and social security for employer and employees in Canada
- Expense Processing
- Health Insurance
Services provided by other groups or companies
Contractor Taxation used the service of our preferred Canadian partner who acted as the contractor management company on this project. They sponsored the engineers on Canadian Work Permits and employed and pay-rolled them locally in Canada in a tax efficient and compliant manner.