ring taxed while traveling

[210045803]

So my wife just went back from the states to Toronto and the immigration officer questioned her about her ring.  They wanted to talk to me and asked me about the ring (where I bought it etc) and made her pay 1200 in taxes/duties...

we always get questioned 

[kelKel]

That's why I'll be taking my engagement ring off when I pick up my visa.
Sorry that had to happen to you

[210045803]

btw I was at work in the states and they called me...the guy said if he didn't hear what he liked and thought was the truth he would pretty much do something to my record and it would be on there for 7 years...caught me off guard...ruined my day...we are filing for my paperwork monday so i didn't want any trouble...i offered to pay over the phone because i didn't want her to see the purchase price either...he said when i had brought it down the first time i illegally entered with it...i said well how can we prove next time we travel the taxes/duties were paid he said pretty much let's take care of one issue at a time and then i guess we have to carry the receipt?

doesn't make much sense to me...

so when i move there in hopefully 5 months do i pay taxes on all my items too?

[kelKel]

No.  When you get your PR because you're a new settler you have to have a list of all the items you're bringing into Canada with you and you don't have to pay taxes. 

That's crazy.  I've never heard of that happening.

[210045803]

What I don't get is they want people to travel to help economy etc but i never want to travel again because of things like this...

she is flagged everytime she enters usa and i asked the IO if when my PR for canada is done then will it unflag her she said well they can put a note but it can't guarantee that we won't get flagged..

is there any way to remove the flag from her name when i move there...everytime she visits usa they hastle her and now when she arrived in canada (she's a canadian citizen) they taxed her ring which she has been wearing for 10 months...

[CharlieD10]

They taxed her ring?    Don't you pay tax on stuff like that when you buy them?  Why would you need to pay tax on it again?  You are not importing it, it's personal property??  That is very odd.

[fleo]

Don't you pay tax on stuff like that when you buy them? Why would you need to pay tax on it again?

 
Because the government wants to make some money, and because it wants to strongly discourage you from buying goods with Canadian equivalent abroad instead of from local manufacturers.

Regardless of the ring being personal property, if it is above a certain "personal import" limit (I don't know how much that is for Canada; back home it's around 60$) you will have to declare it and pay duties and taxes. Normally that would be whatever VAT type the country uses (so in this case GST + PST), plus excise tax on luxury goods (I think in Canada that's 10%).

(Disclaimer: All my knowledge of tax law was acquired in Europe over 3 years ago and may no longer apply in this time and place, so feel free to correct me ).

What baffles me here is that they taxed a used item :/ OP, does your wife have a permanent Canadian address or was she actually living in the States? Was she entering Canada to stay or to visit?

[Patricksgirls]

I have never heard of this happening but then again how did they know it was not a family heirloom ring or something to that nature?

[scylla]

Sorry this happened to you. It's actually not that unusual to be question about an expensive item (and taxed) when crossing the border. However I think they applied the rule very very strangely in your wife's case (it would have made more sense to me if she had been taxed when re-entering the US, rather than entering Canada - hope you can somehow fight the charge).

As a general rule, if you're crossing the border with an expensive item (jewelry, camera, bike, etc.) then there's a form you should complete ahead of time and carry with you to ensure the item won't be taxed. I've done this on occasion when traveling out of Canada with my camera (to make sure I won't be taxed when I return to Canada because they think I bought the camera when I was away).

See below for information that covers both US and Canadian residents:

For any expensive items (especially your bike, but also cameras, lap tops, etc.), complete an Identification of Articles For Temporary Exportation (for Canadians going into the US) or Certificate of Registration for Personal Effects Taken Abroad - Customs Form 4457 (Americans entering Canada). You can obtain these forms at the border or at your local customs office. Have the form(s) stamped at the border or prior to your trip. The serial number of the item is recorded on the form and proves the origin of the item. Otherwise the item could be dutiable (and in Canada, GST-able). Once completed and stamped, keep these forms, they'll be good for future trips. Non Canadian/US citizens should check with their own country officials for similar documentation.

[scylla]

To add...

It's been a while since I filled out one of the forms mentioned in my post above (I used to have an expensive camera but downgraded to cheaper versions several years ago since I have a tendency to drop and generally abuse them). However for Canadians traveling abroad, there used to be an office at Pearson you could visit just before your flight to complete the form and have it stamped. Not sure if that office is still there or if the process has changed...

[bonbon9]

Do we need the original receipts of these items to fill up the forms?
 

[scylla]

I never had one. I just walked up with my camera, filled out the form, they stamped it and that was it.

[210045803]

i'm just really upset because we've been travelling for 10 months with this ring and she has entered canada before with this.  the guy on phone pretty much threatened me if he didn't like my answer then he'd do something to my record.  and then he is like well i'll give her the receipt and fold it so she doesn't know how much you paid for it.

the thing that really pisses me off is i said well how do i know this won't happen again and he pretty much said let's deal with one thing at a time.  anyways we are going to fight it. i'll update you guys.

he looked up my crossing too (by name and birthdate) and he showed her all the times i entered and how i declared 0 and then made me feel like i was a criminal and he would do me a favor if i cooperated and paid taxes on it otherwise he would flag me to always get searched by customs.  also said i could have gotten arrested because it was over a certain value...don't they have better things to do than harass a canadian citizen (young lady with her ring on) entering her own country.  she got patted down twice too and her luggage was checked in usa too before she left.  

[scylla]

210045803 -

I'm definitely no expert. But I really don't think the rule was properly applied in your case. I'm glad you're going to fight it!

[fleo]

However I think they applied the rule very very strangely in your wife's case (it would have made more sense to me if she had been taxed when re-entering the US, rather than entering Canada - hope you can somehow fight the charge).

Not really; if the ring was bought in the U.S., she would - as a Canadian citizen - be charged for importing it to Canada.
If the ring was bought in Canada there wouldn't have been any taxes at all as it would not be considered imported in the first place, but I'm guessing that's not the case - which is also why the form you mentioned (although it's generally very smart, useful and awesome ) wouldn't help here since it only prevents taxation of domestically bought (or already taxed) goods when returning to your country; my understanding in this case is that OP's wife went to the States with no ring and came back with one.

210045803, could you please clarify where did the ring come from and how many times has it crossed the border?

Oh, and regardless of all that? Mister officer was still a giant ******bag.