Hi,
I am planning to migrate to Australia. I have around 20K in my RSSP. What are my options?
1) Should I collaspe the RSSP
or
2) Leave it. Will I be taxed on the income generated in Australia?
Is your intent to relinquish Canadian permanent residency and take up Australian permanent residency?
If so, it's better to collapse it (since you will never return here anyway).
Since you will cease to be a PR, you don't have to file taxes any more.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: carl sagan's universe
Posted on: 03-05-08 09:02:45
Hi Sam2007
Some of my clients who moved to Australia actually left their RRSPs here until they got the equiv of the PR in Australia (usually takes less than a year).
They then faxed instructions to me to redeem their RRSPs at less then $5000 at a time so the withholding tax is only 10%.
They then faxed the instructions to their bank to wire them the money from their a/c.
Bank a/cs were also left active.
If you do not have an advisor, but have your RRSPs at a bank speak to them and see what they can do.
Also some clients changed their bank details before leaving. i.e changed from Scotia, TD to HSBC as it seems there are HSBC branches in Australia and wiring from HSBC to HSBC there are no charges o/w from Scotia to a bank in Australia is about $27.
You can leave active bank a/cs in Canada if you tell them you have been posted overseas for a year or so.If you already have your equiv of PR from Oz, you can still leave a bank acc active here I believe.
Quote:
Originally posted by investpro
Hi Sam2007
Some of my clients who moved to Australia actually left their RRSPs here until they got the equiv of the PR in Australia (usually takes less than a year).
They then faxed instructions to me to redeem their RRSPs at less then $5000 at a time so the withholding tax is only 10%.
They then faxed the instructions to their bank to wire them the money from their a/c.
Bank a/cs were also left active.
If you do not have an advisor, but have your RRSPs at a bank speak to them and see what they can do.
Also some clients changed their bank details before leaving. i.e changed from Scotia, TD to HSBC as it seems there are HSBC branches in Australia and wiring from HSBC to HSBC there are no charges o/w from Scotia to a bank in Australia is about $27.
You can leave active bank a/cs in Canada if you tell them you have been posted overseas for a year or so.If you already have your equiv of PR from Oz, you can still leave a bank acc active here I believe.
I believe that would amount to tax evasion.
If he migrates to Australia, then he becomes a NON RESIDENT of Canada for tax purposes and the rates of taxes are different for Non Residents than for Residents for Canada. He is supposed to inform his Canadian Payers and Banks about his NON RESIDENT status so that they can deduct the tax accordingly.
Moreover, if he does not sever his residential ties then he is supposed to pay Canadian Taxes on his world wide income, which I think he would not like to pay.
He should follow this http://www.cra-arc.gc.ca/tax/nonresidents/individuals/leaving-e.html#common
and take decision accordingly.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
