My question is quite similar to others, which must have been asked you this board, but at the same time somewhat different.

1. I submitted a net worth statement at the time of submitting my application (with my skilled application category) which does not reflects funds held abroad ( as we got inheritance which we have kept overseas due to security reason in our country). Will it effects anyway, when we take the proof of net worth at the time of interview which will be quite different what we disclosed earlier.
2. What tax rate will be applied on the income from investments (funds, which we plan to transfer/ bring to Canada) is there any difference in tax rate on interest income earned in Canada or overseas.
3. Are immigrant allowed to investment their money abroad or any restriction to transfer the money overseas?
4) If portion of our money are mot shown at the time of landing, and later transferred to Canada, will be taxed and treated as an income or What?

2- The Canadian tax rates to be applied on investment income depends on the nature of the income (i.e. dividend income, interest income or capital gains). Also, the combined tax rate(federal/provincial) to be applied will depend on the Province in which a taxpayer is residing at the end of the year.

Moreover, in Canada, we have a progressive tax rates. Therefore, the tax rate to be applied on investment income depends also on your taxable income for the year. For information on Quebec and Ontario rates, please go to www.richter.ca.

A taxpayer resident in Canada will be subject to tax in Canada on his worldwide income. This means that he or she will pay the same tax rate on interest income from Canadian or foreign sources. If you are subject to tax on the same income in both Canada and another country, it may be possible to reduce or eliminate double taxation by claiming a foreign tax credit in Canada for any taxes paid on the income in the other jurisdiction.

3- For income tax purposes, a Canadian resident may invest funds either in Canada or anywhere in the world. However, as previously mentioned, he will be subject to income tax in Canada on any income earned in other countries. An exemption is available for up to five years for those who invest in “immigrant trusts” prior to becoming a Canadian resident.

Where the investment offshore is not held directly, Canada may be able to tax the income on an accrual basis.

It should be noted that investments held outside of Canada may be subject to reporting requirements in Canada.

4- Once you become a resident of Canada you will be subject to Canadian tax after that time on your worldwide income regardless of where it is invested. You will not be required to pay tax on any capital that you will bring into Canada at a later date provided that the capital was subject to Canadian tax after you became a resident of Canada for income tax purposes.

The nature of this facility is to provide a general response to a general question. Under no circumstances should anyone act on this information without obtaining analysis and counsel from a qualified advisor with respect to the specific situation.

Phillip Nadler, CA
Richter Usher & Vineberg
http://www.richter.ca