Posted on: 02-09-10 23:58:56
Hi...my family and I are moving to Vancouver in Nov '10. I was wondering which is the best method of bringing money into the country.
I was thinking of bringing banker's drafts with me. A friend told me that transferring money into a Canadian account is best as long as it is less than CAD 10k per transaction, else it gets flagged to the tax authorities. Is this true ?
Also, if I do bring bankers drafts with me and declare it at the airport, am I liable to pay tax on that money ?
I'm so confused !! 
Please Help !!!
It all depends on ur ties with Canada during that period of stay outside
i did not find convincing answer myself on this forum on taxation
senior desis please advise?????
Are you landing for the first time?
New immigrants have no limits (or taxes) as long as they declare it.
Please clarify for knowledgeable seniors to advice.
Hiren
Hi hchheda
for my case
I made my first landing to Toronto on 3rd Sept2008, completed the landing formalities like PR, SIN, Health card, Opening of Bank Account etc & went back to gulf on 16th Sept 2008. I’m planning to move permanently to Calgary on Oct 1st 2010. My question are as follows
I bought CAD 25000 as proof of Funds during my first landing. Now, im planning to bring CAD 100,000. Do I need to pay tax or any other charges on this amount???
Also, How can i bring this amount?????i have TD account in Canada, can i transfer the amount to TD from here through wire transfer. Again, Will that amount will be taxed???
Pls reply
Quote:
Originally posted by rajvikas
Hi hchheda
for my case
I made my first landing to Toronto on 3rd Sept2008, completed the landing formalities like PR, SIN, Health card, Opening of Bank Account etc & went back to gulf on 16th Sept 2008. I’m planning to move permanently to Calgary on Oct 1st 2010. My question are as follows
I bought CAD 25000 as proof of Funds during my first landing. Now, im planning to bring CAD 100,000. Do I need to pay tax or any other charges on this amount???
Also, How can i bring this amount?????i have TD account in Canada, can i transfer the amount to TD from here through wire transfer. Again, Will that amount will be taxed???
Pls reply
Under Canada's tax system, your liability for income tax in Canada is based on your status as a resident or non-resident of Canada. Residency must be established before your tax liability to Canada can be determined.....
The above is quoted from CRAs website. Please read from this http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html very carefully as it will determine your residency status fox tax purposes. And mind you only CRA can determine your residency status for tax purposes and you might have to ask them for a ruling in your case.
Having said that, as per the information provided by you, it seems that MOST LIKELY you did not establish major residential ties in Canada on your first landing and went back with in 2 weeks and should be a Non Resident of Canada for Tax purposes. Hence, If CRA treats you Non Resident for Tax purposes, then whatever income you earned outside Canada after your first landing would not be considered your income for filing taxes in Canada and you may not have to pay any taxes on that amount and you can have the amount wire transferred to your TD account. Please keep all proper paper trails in case the authorities may like to know the source of funds some time in future.
On the other hand, opening a bank account and applying for OHIP (I do not know how you got OHIP card by applying with 2 weeks of landing) can be considered as 'secondary residential ties' which may have a little effect on your residency status coupled with other relevant information as detailed on CRAs website.
Also, when you did your first landing did you provide the Immigration Officers with a list of things and funds to follow. If yes, then did you declare that you would be bringing this amount later on?
I would suggest, after your landing in October, 2010 consult a tax accountant in Calgary and get a ruling from CRA on your situation and take proper action.
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks pramod for the reply
On the other hand, opening a bank account and applying for OHIP (I do not know how you got OHIP card by applying with 2 weeks of landing) can be considered as 'secondary residential ties' which may have a little effect on your residency status coupled with other relevant information as detailed on CRAs website.
1. I obtain the OHIP by submitting the1 year lease agreement/letter signed between me & my firend as home owner as residence proof requirement. I understand now that this is a major mistake i did but at that time i was not aware of the consequenses.
Also, when you did your first landing did you provide the Immigration Officers with a list of things and funds to follow. If yes, then did you declare that you would be bringing this amount later on?
2. No, I have just provided with the list of accompanying goods & goods to follow list but not included Fund. The goods to follow list includes things like Furniture, Appliances, Jewellery with photo, household items etc..
Note: just curious to know, if i made a wire transfer, if at all it is taxed. How much it will be for the amount of CAD 100,000????
Quote:
Originally posted by rajvikas
Thanks pramod for the reply
On the other hand, opening a bank account and applying for OHIP (I do not know how you got OHIP card by applying with 2 weeks of landing) can be considered as 'secondary residential ties' which may have a little effect on your residency status coupled with other relevant information as detailed on CRAs website.
1. I obtain the OHIP by submitting the1 year lease agreement/letter signed between me & my firend as home owner as residence proof requirement. I understand now that this is a major mistake i did but at that time i was not aware of the consequenses.
Also, when you did your first landing did you provide the Immigration Officers with a list of things and funds to follow. If yes, then did you declare that you would be bringing this amount later on?
2. No, I have just provided with the list of accompanying goods & goods to follow list but not included Fund. The goods to follow list includes things like Furniture, Appliances, Jewellery with photo, household items etc..
Note: just curious to know, if i made a wire transfer, if at all it is taxed. How much it will be for the amount of CAD 100,000????
First of all when you make a wire transfer, the bank may deduct its usual charges for the inward remittance but WOULD NOT deduct any taxes fromt he funds. Here is Canada we have self assessment system. Hence, when you file your tax return here, if this amount or part there of is considered income then you have to declare this in your return and pay taxes as per the slab you would fall in based on your total income. So, do not worry about this right now. The first thing is to get a ruling from CRA about your residency status.
It seems that you got a lease contract only for the purpose of getting OHIP card but as you left without staying here and may never have paid any rent or used your OHIP card, you may still be considered NON RESIDENT for tax purposes and may not have to pay any taxes on any of your worldwide income you made after you left Canada in Sept 2008 till your re landing again in October, 2010. Hence, as advised earlier, contact a Tax Accountant in Calgary and get a ruling from CRA on your residency status and then act accordingly. Though I still fee you would be considered Non Resident but CRAs decision would be final.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
