Tax for Canadian abroad but contracting for Canadian company

[borajetta]

I am a Canadian / EU citizen. I lived in Canada my entire life and own a condo there but recently and have decided to live abroad for a while. I am doing remote IT contracting for the same company I worked for in Canada while I was living there. I setup a Canadian self-employed business and have been invoicing and being paid within Canada.

I plan to pay Canadian taxes and not pay for the country I am currently living in (right now UK, but I may move around Europe). I wanted to know if there are any implications with this or if this is allowed since all the work is though the Canadian parts of the company and I am paid in Canada. Do I need to declare that I am abroad while filing for my 2011/12 taxes or do I do everything as I would normally having a Canadian based company?

I have not been able to find information on this. I have seen lots of people working abroad but working for the abroad company and being paid in that country.

Any information would be greatly appreciated.

Thanks

[nelsona]

This is a bit tricky, since if you actaully LIVE in UK, you can't choose not to report and pay taxes there. There is some leeway, by treaty, for self-employeds working in UK (and most other treaty countries) and living in Canada, but it does requires living in canada.

You would need to check with someone in UK, to see if Inland revenue is ok with your decision not to pay tax in UK.