Bring money into Canada

[steaky]

If you have a substantional amount of money or other assets that create income for you abroad, you should consider offshore immigration trust which is good for 5 years minus 2 weeks.

On the other hand, it will cost over $15,000+ as well.

Yes such offshore immigration trust exists in Canada.  But one must do the paperwork perfectly, otherwise if turned down by CRA, will suffer large financial setbacks. 

[haver]

This is just one of many ways to reduce taxes.

[toby]

It is mostly the lawyers who draft the trust agreement who make the real money.  The trusts cost anywhere from $5k to $30k to set up, plus another $5k minimum to administer each year.  Given the low rate of capital gains tax in Canada, to justify the Immigration Trust you should have a LOT of money in it. A lot! And then there is the trust tax return, not usually included in the annual admin fee.

[toby]

Not quite, Toby.  Thanks anyways.  The non-resident need to file tax return to report the capital gain when he sell his house and form T2062 to reduce the tax withholding to 25% of the net sales profit (although he can claim back his non-residential tax according to the tax treaty between his country and Canada).

Steaky:

You are right on this one. Thanks for the correction.  I was told 50% by a real estate agent, and assumed he knew his stuff.  Not so, evidently.  Looking for a different agent, and this 25% hold-back of net gains will be one of the test questions.

[steaky]

It is mostly the lawyers who draft the trust agreement who make the real money.  The trusts cost anywhere from $5k to $30k to set up, plus another $5k minimum to administer each year.  Given the low rate of capital gains tax in Canada, to justify the Immigration Trust you should have a LOT of money in it. A lot! And then there is the trust tax return, not usually included in the annual admin fee.

Toby,

Only new immigrants (never been to Canada) can set up the Immigration Trust.

[toby]

We're not connecting here, Steaky.  When I thanked you for the correction, I was referring to my assumption (in error) that there was a 50% holdback on the gross proceeds of selling real estate.  You corrected me to say that it was only 25% of NET gains.  That's what I was thanking you about.

[jordankevin47]

Hello All,

I was recently referred to the Tax Collectors Bible by a friend, i must say that i am absolutley blown away by how valuable the information in this book is. I am going out of my way to introduce this book to everyone i know, and even those i don't know. this book is a MUST read for every Canadian tax payer.

You can download the book from this site taxcollectorsbible dot com

Happy Reading, and do the Canadian thing and share this book with everyone you know.

kevin Jordan.

[toby]

Hello All,

I was recently referred to the Tax Collectors Bible by a friend, i must say that i am absolutley blown away by how valuable the information in this book is. I am going out of my way to introduce this book to everyone i know, and even those i don't know. this book is a MUST read for every Canadian tax payer.

You can download the book from this site taxcollectorsbible dot com

Happy Reading, and do the Canadian thing and share this book with everyone you know.

kevin Jordan.

Thanks for the tip, Kevin.  I wrote to the author via his website, to ask whether the book could be downloaded to my hard drive online -- since I live in China and don't want to wait for mail delivery.  But I got no answer. 

Can the book be downloaded online?


 

[steaky]

Is it turn retributory not judge your accounts or money blessed offshore so you don't pay taxes? They can't judge it anyway as almost all countries individual Depository Secrecy Law. Is it unfair to tax the money you didn't get in Canada?

It's not unfair when this is mentioned somewhere in Revenue Canada website.

It's only unfair if something is not mentioned in the act, but you are being held liable because of this.

[vermas]

Whats the maximum a new immigrant can bring into Canada?

I want to bring apprx C$40K (cash + ICICI Bank) at the the time of landing and approx C$200K from the sale of my house property within Six months of landing. Will there be a Canadian tax implication on it? Do I need to declare this $200K at the time of landing?

Your guidance is appreciated.

vermas

[steaky]

Whats the maximum a new immigrant can bring into Canada?

There are no limit.  You can bring as much as you want.  But carrying cash is risky.  Why not use HSBC Premier banking? It's safe and convenient.

I want to bring apprx C$40K (cash + ICICI Bank) at the the time of landing and approx C$200K from the sale of my house property within Six months of landing. Will there be a Canadian tax implication on it? Do I need to declare this $200K at the time of landing?

If the house is sold after you become a resident of Canada, then you may have to report any capital gains to Canada Revenue Agency in your tax return.  On the other hand, if it is sold before your landing, there are no Canadian tax implication.  For any amounts equal or exceeding $10K you are bringing to Canada on the date of landing, you have to declare them to the customs officer.

Your guidance is appreciated.

vermas

[vermas]

Hi steaky,

Thank you very much for your valuable comments. When I sell my house property after landing in Canada, I will be be paying Capital Gain Tax in India. Is there a double taxation treaty between India and Canada? Your clarification wil be greatly appreciated.
Thanks and regards,
vermas

[manja_mali]

Hi steaky,

Thank you very much for your valuable comments. When I sell my house property after landing in Canada, I will be be paying Capital Gain Tax in India. Is there a double taxation treaty between India and Canada? Your clarification wil be greatly appreciated.
Thanks and regards,
vermas

Also have a similar issue, BTW how do you show your Funds in Indian Bank Account ?
~manja

[computergeek]

There is a section of the return that asks if you have more than $100k in assets.  That is completely independent of any income or loss that you experience from investing those assets.

However, if you don't report them and are subsequently audited and their existence is identified, an auditor might reasonably assume that this is INCOME that you have received, in which case you will owe income tax on that income.  Alternatively, you might be charged with penalties (for the failure to disclose) and even expose yourself to criminal prosecution.

The Canada/India tax treaty can be found here: http://www.treaty-accord.gc.ca/text-texte.aspx?id=102409

[RAY2112]

Dear All,

Please I need a help regarding the below issue:

I landed in Canada in Sept 2011 and stayed for approx one month then I came back to my origin country; during the months that I was outside Canada I did one money transfer from my overseas bank account, and now I am planning to return back and settle, I already have Driving License, Canadian bank account, SIN, PR. My questions is, Do I need to pay tax for the amount that I transferred during my absence from Canada and the the money that I am willing to transfer to my Canadian account? I planning to transfer about 50K.

Thank you