I`m trying to decide on a potential move which seemed pretty clear cut at the outset but quickly got complicated so I need some accurate advice so I can make a calculated decision

I`ve just been hired by one of the bigger oil & gas companies and will eventually be working on site up north (FIFO rotation which I am familiar with) but not until the middle of the year at the earliest as the project is not ready yet, so in the meantime I am going to their head office for what they refer to as a "Temporary Assignment" where I`ll receive training

As their office is not within commuting distance to where I currently live they will be providing me with a residence (apartment or whatever I imagine) for the duration. This first came up when I signed the contract and I had a casual conversation regarding this with the company representatives that were present. When they explained what would happen I said that we did not have any ties to where we live at present so was it possible that we simply move there and live in the company provided accommodation for the duration thus giving up our current property (a rental we can easily leave as the original contract has expired), this appeared to be well received and even encouraged

Fact is we`ve been looking to move anyway and while this move is not to where we want to end up its a to a decent place and its closer to our chosen area to live that we are at present

By doing this for ~6 months we stand to save a decent chunk of cash by not paying:

1) Rent

2) Utilities

3) For a second vehicle (I`d have to buy a second if I travel there each week and my wife stays where we are now)

So I`d pretty much made my mind up but the company rep who deals with relocations is strongly advising against this idea as I`d be taxed for using the company accommodation as my main residence (I`m guessing the CRA would view this as a "Benefit in kind" or whatever the correct term is and tax it accordingly)

Even so considering what I stand to save I imagine I`d still be well ahead even after paying taxes and possibly monthly storage fees for some of our belongings that would have to be put in storage while we live in a smaller apartment

Can anyone clarify what the CRAs position is on this issue and how to calculate (roughly) how much I`d be looking at so I can make an informed decision on this?

Thanks in advance

 

I can recommend a really good accountant, he based in St Thomas. Awesome guy and very knowledgeable without the big city attitude and rate. I've called him up with a number of "what if" type calls over the years and he always helps with an immediate answer or gets back to me after he does his research.

Sounds very similar to the way I am assessed an annual taxable benefit amount for my company car.

 

How soon do you need to know?

 

Not enough info. Talk to a CA or Tax lawyer for an hour and plan your your move.

 

I start in early January so need to make a decision before then if possible, but the sooner the better (so I can give notice, start making the necessary arrangements etc)

 

What am I missing?

And whats a "CA"?

 

CPA= certified public accountant

CA= certified accountant??

 

CA= cheap ******* or Chartered accountant, depending on your relation with the CA

 

Does it matter if he`s not in my locality?

If not I`m looking for a quality accountant for this issue and also for my tax affairs in general so I`d appreciate the referral

In my experience a good accountant will pay for themselves in savings and the two I have used previously didn't really impress me

 

I already know my fair share of those....!

 

Did a little bit of reading (tax geek here) and your employer will need to include the Fair Market Value of the "free housing" as part of your income on the T4 they provide less any portion you paid out of pocket. They must also provide that specific $ amount in Box #30 of your T4.

 

CA= Chartered Accountant
Tax planning is something that requires all your info.
Making a mistake because somebody's friend said it was okay can end up
costing you a lot in the future so, pay a few hundred now for the peace of mind
and setting yourself up properly.

 

Yeah what you're saying makes sense

From what the company have said I won't have any tax burden if I commute and keep my current residence (only if I move there in totality for the duration), this combined with the various allowances they offer for travelling makes them advise me to go that route but for the reasons I outlined earlier I`d rather move

 

I hear ya

I have a few other things (RRSP allowances etc) that I`d like straightened out at the same time so I could get it all thrashed out at once by an impartial expert

 

Where about are you located?

I am a CA and I work for a firm in oakville. If we can help you in any way, please feel free to shoot me a PM.