A French national was employed by a Canadian corporation since August 1998 and resided in Canada from that date until July 29, 2007, when he ceased to be a Canadian resident on his departure for France, where he continued to be employed by the Canadian corporation, Although the Canadian corporation did not have an establishment in France, it was required to be registered with the responsible French organizations and to pay employer's contributions in France.
After finding that s. 115(2)(c) did not apply to deem the employment after the departure to be exercised in Canada, CRA stated:
Consequently … if the non-resident person does not perform any of the employee’s employment duties in Canada, there would be no withholding tax with respect to the federal tax.