Posted on: 07-05-07 14:49:09
Quote:
Originally posted by web2000
That is what I wanted to confirm.
One more question I would like to ask is if I get money from my parents as a gift, will that money be taxable in Canada. My parents have already paid tax in India and the gift is the result from their savings. As far as I know there is no tax paid on the gifts received in Canada.
Can someone shed light on it?
Gifts and inheritances are not taxable in Canada.
Your parents should send you the gift through 'proper banking channels' only. I believe now a days Reserve Bank of India permits residents Indians to send up to US$50,000 per year as a gift without seeking RBI permission.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Originally posted by web2000
What you are saying that if I have made a profit of $50000 from sale of property in India, then I will end up paying 30% to Indian government and 30% to Canadian government and I will be left with 40% of the profit. If this is the case then no one will be willing to invest in India. Dollars can flow in to India and there is no way to get those back to Canada unless I pay double tax.
There could be another option if the sale could be done in such a way that money is considered as a gift given to me. As far as I know there is no gift tax in Canada.
No I never said that!
All I said was that once you make ANY income anywhere in the world, as a resident of Canada you are liable to pay taxes on it in Canada.
As Pramodji has pointed out, you are liable for taxes but if there is a double taxation treaty between the country where you earned that income, you will be able to get a credit (full or partial - depending upon the treaty between that country and Canada) in your tax return filed in Canada. Also, let me tell you, unlike India, there is no difference in Canada in long-term or short-term capital gains.
Quote:
Originally posted by web2000
Dollars can flow in to India and there is no way to get those back to Canada unless I pay double tax.
Please, once again, PLEASE DO NOT CONFUSE taxation liability with flow of dollars (money). As a resident of Canada, once you earn an income in a foreign country, you are liable to Canadian taxes WHETHER OR NOT YOU BRING MONEY INTO CANADA.
There are various means of planning tax liability for foreign investments - and taking help of double tax treaties is just one of the simpler ones.
As for your question for getting money into Canada as a gift - yes you can get it without being taxed in Canada. Just remember that if audited, you should have full documentary evidence of the source not only of the gift, but also of the original source of assimilation/generation of that money/savings so prove that it is not laundered money.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Now I understand.
Thanks all of you
