Tax on assets (return after soft landing)

[Wonderseeker7]

Hi folks,
I ran into a dilemma and hoped to find someone who had a similar situation to give me some leads on how to proceed.

So my family and I became permanent residents in July of last year, we did a soft landing where we stayed for just 12 days during which we got bank accounts and SIN.

I was in touch with an agent from a tax clinic who helped us establish that we were non-residents over the past year.

We moved back to Canada last week to finally settle down. The worry I have now is about taxation over the assets that we want to bring into the country.

Are we still eligible to bring our money without being taxed? I asked a CPA, the agent from the tax clinic as well as my bank and none seems to know the answer to that. We're in a difficult situation since the little cash we brought we us began depleting and we don't have enough funds to rent a house.
Thank you

 

[steaky]

Hi folks,
I ran into a dilemma and hoped to find someone who had a similar situation to give me some leads on how to proceed.

So my family and I became permanent residents in July of last year, we did a soft landing where we stayed for just 12 days during which we got bank accounts and SIN.

I was in touch with an agent from a tax clinic who helped us establish that we were non-residents over the past year.

We moved back to Canada last week to finally settle down. The worry I have now is about taxation over the assets that we want to bring into the country.

Are we still eligible to bring our money without being taxed? I asked a CPA, the agent from the tax clinic as well as my bank and none seems to know the answer to that. We're in a difficult situation since the little cash we brought we us began depleting and we don't have enough funds to rent a house.
Thank you

Can't you use your bank card from your home country to withdraw funds from Canadian bank machine? Afterwards, deposit the funds in a Canadian bank? Are your assets in home country all cash?

edit: The Canada Revenue Agency make the decision (not your CPA, tax clinic and your bank).

 

[azazulhaq]

Hi folks,
I ran into a dilemma and hoped to find someone who had a similar situation to give me some leads on how to proceed.

So my family and I became permanent residents in July of last year, we did a soft landing where we stayed for just 12 days during which we got bank accounts and SIN.

I was in touch with an agent from a tax clinic who helped us establish that we were non-residents over the past year.

We moved back to Canada last week to finally settle down. The worry I have now is about taxation over the assets that we want to bring into the country.

Are we still eligible to bring our money without being taxed? I asked a CPA, the agent from the tax clinic as well as my bank and none seems to know the answer to that. We're in a difficult situation since the little cash we brought we us began depleting and we don't have enough funds to rent a house.
Thank you

Hi,
I hope you are settling in.
You are not taxed on any income earned before moving to Canada - CRA only taxes income earned after your official landing date as a Canadian tax resident. You are also free to bring in any assets you owned abroad. CRA deems that foreign property held before you became a resident is treated as sold and immediately reacquired at its fair market value (FMV) on your arrival date, that FMV becomes your new cost basis for future capital gains. You pay tax only on appreciation that accrues after you arrive. If the total cost of your specified foreign property ever exceeds CAD 100,000 in a tax year, you’ll need to file Form T1135, even if you owe no tax.

These principles mean the cash and assets you bring in earned prior to residency are not taxable in Canada, and any subsequent gains are based on their value at the moment you became a Canadian resident.

Let me know if you have any questions.

Regards,
Azaz