Immediately prior to your becoming resident of Canada, you will be deemed to dispose of your term deposits for proceeds equal to their fair market value at that time and you will be deemed to have acquired them at that time for a cost equal to the fair market value. Only interest accuring on the term deposits after you become a Canadian resident will be subject to tax in Canada. However, foreign tax credits may be available in Canada in order to reduce the impact of double taxation if the interest income is subject to tax in another jurisdiction.
Disclaimer
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
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