Savings from outside Canada

[hambousha]

Hello all
If some one soft landed 2 years ago
Returned to home country to make some savings
Transfered like 25,000 to his account in Canada before moving back permenantly to Canada
1-Is this amount taxable ?
2-Does this amount affect the child care assistance (the government monthly payment for child support )?
Thanks a lot

 

[steaky]

Depends if this person is tax resident of Canada.

 

[hambousha]

What do you mean

 

[steaky]

If this person established himself as a non resident for Canadian tax purposes after landing, then the income made outside Canada is not taxable. Otherwise, taxable.

If the person received child benefits since landing, s/he is a Canadian resident for tax purposes.

 

[hambousha]

The perosn filed his taxes as zero income in canada and never received any child benefits
But he is now going back to canada and want to send the money to his account

 

[YVR123]

The perosn filed his taxes as zero income in canada and never received any child benefits
But he is now going back to canada and want to send the money to his account

How did this person file zero income while he/she made enough and have savings to bring back?
As a tax resident, you file your world-wide income. (salary, investment income, capital gain...etc)

 

[APPNOV2014NY]

How did this person file zero income while he/she made enough and have savings to bring back?
As a tax resident, you file your world-wide income. (salary, investment income, capital gain...etc)

This person didn't live in Canada then why would he be considered as tax resident?

 

[APPNOV2014NY]

Hello all
If some one soft landed 2 years ago
Returned to home country to make some savings
Transfered like 25,000 to his account in Canada before moving back permenantly to Canada
1-Is this amount taxable ?
2-Does this amount affect the child care assistance (the government monthly payment for child support )?
Thanks a lot

1. No amount is not taxable if you were non-resident ( from CRA perspective) and money was not earned in Canada.

 

[YVR123]

1. No amount is not taxable if you were non-resident ( from CRA perspective) and money was not earned in Canada.

Why did he file tax return when he is not a tax resident?

 

[APPNOV2014NY]

Why did he file tax return when he is not a tax resident?

Many people do that even though it's not really required. Noting invalid about it.

 

[canuck_in_uk]

Hello all
If some one soft landed 2 years ago
Returned to home country to make some savings
Transfered like 25,000 to his account in Canada before moving back permenantly to Canada
1-Is this amount taxable ?
2-Does this amount affect the child care assistance (the government monthly payment for child support )?
Thanks a lot

I'm assuming you are referring to child benefit. It has nothing to do with savings. It will be based on your 2017 income in your home country.

 

[canuck78]

So he should be declaring the portion he made last year as part of his global income when filing for CTB.

 

[summerxx]

So he should be declaring the portion he made last year as part of his global income when filing for CTB.

wait, I just noticed you and canuck_in_uk are two separate persons...........

 

[NetMecca]

Dealing with foreign income and taxes could be a veritable mine field. Depending on international agreements if taxes were paid on foreign income in the foreign country this may trigger that income being excluded from Canadian taxes. However tax residency also is a question. I would recommend that you approach an accounting firm with international experience to help you get a clear answer to your questions. Try BDO.