Declaring funds at the POE-have doubts

[ana_ana]

Here is my question, I would be very happy if u can help me to figure out the right thing to do. I am landing in January with my kid and i will show my POF for 3 people as a principal applicant. My husband is coming in March-2 months after us. We are not sure whether we will sell the house till january. My question is: How can I declare the money from the house which may still not be sold at the moment I enter Canada? Can my husband bring that money even if I hadn't declared it previously? And how can I declare it...as goods/money that MIGHT follow? Cause there is a chance that it wont be sold until March...and maybe our parents will have to do that with a notarized agreement.
Thank you

 

[wilson]

Here is my question, I would be very happy if u can help me to figure out the right thing to do. I am landing in January with my kid and i will show my POF for 3 people as a principal applicant. My husband is coming in March-2 months after us. We are not sure whether we will sell the house till january. My question is: How can I declare the money from the house which may still not be sold at the moment I enter Canada? Can my husband bring that money even if I hadn't declared it previously? And how can I declare it...as goods/money that MIGHT follow? Cause there is a chance that it wont be sold until March...and maybe our parents will have to do that with a notarized agreement.
Thank you

Hi Madam ana_ana,

Sorry to give a negative answer to your question.
As you are the PA you should declare the POF for 3 people even though your husband is arriving later in March. When he land no one will ask POF from him and if he has the money more than CAD 10,000/- he should declare it.But not as POF.
The POF is to be declared by you, either by

# cash or
# securities in bearer form (for example, stocks, bonds, debentures, treasury bills) or
# negotiable instruments in bearer form (for example, bankers' drafts, cheques, travellers' cheques or money orders)


Usually people landing will take Cash+Bank draft or TC.
I cannot give an opinion how you dispose the property.

 

[asyousuf]

Here is my question, I would be very happy if u can help me to figure out the right thing to do. I am landing in January with my kid and i will show my POF for 3 people as a principal applicant. My husband is coming in March-2 months after us. We are not sure whether we will sell the house till january. My question is: How can I declare the money from the house which may still not be sold at the moment I enter Canada? Can my husband bring that money even if I hadn't declared it previously? And how can I declare it...as goods/money that MIGHT follow? Cause there is a chance that it wont be sold until March...and maybe our parents will have to do that with a notarized agreement.
Thank you

I agree with Wilson. To prove your liquidity strength at the time of landing, there is no such concept of MONEY TO FOLLOW. Should be in the form as mentioned in Wilson's post

asyousuf

 

[ana_ana]

Thank u both. I am clear with that-I will show the needed POF. But, what about the money from the house-if someone (m husband or my father) transfers a big sum of money into my new "Canadian" bank account after 2, maybe 10 months, will I have to pay some tax on that transfered money, or?

 

[wilson]

Thank u both. I am clear with that-I will show the needed POF. But, what about the money from the house-if someone (m husband or my father) transfers a big sum of money into my new "Canadian" bank account after 2, maybe 10 months, will I have to pay some tax on that transfered money, or?

Hi You are welcome.
I don't think you have to worry about that. Being a new immigrant you can bring money to Canada for settlement purpose by way of transferring the bank deposits, disposing your property and assets you have in any other country. Of course you have to file tax return in Canada as per rules. About questions of your Canadian and foreign income etc, is normal for every ones case. You don't have to worry for such things at this time as it is too early. Perhaps after settling down, when the time comes to file the tax return, you should contact any tax consultants in your town. Therefore, go ahead and plan about the peaceful moving to Canada. Forget about the taxes now.

 

[ana_ana]

)) Thanks Wilson. I am a person who likes planning things and always be prepared with plan B )) Thanks

 

[Pippin]

I don't have experience with this issue, but Cappuccino is in a similar situation, so you might think of sending him a PM for advice. I do recall reading something about this on Forum in the past 6 months and I think there is a period of time in which you can bring funds to Canada, tax exempt, if they have been declared. Was trying to do a search on Forum, but haven't found it yet.

 

[wilson]

)) Thanks Wilson. I am a person who likes planning things and always be prepared with plan B )) Thanks

Hi ana_ana,

I made some research on this subject and what I found is noted here for your information:

The concept of taxation in Canada is based on income. There is no income being generated here at the start when the funds are brought in Canada. Once it is invested here, however, then there will be taxation based on the type of income generated, (e.g. interest, dividends, capital gains, etc.)

There is NO restriction in bringing any money any time - you can keep doing it for the rest of your life. Income Tax Act requires you to declare if you have foreign assets over CAD 100k in each of your returns. If you have more than 100 k worth of foreign assets and declared that asset in your first tax return that you file after landing, you can bring in that money without any tax liability. However, if you have NOT declared the foreign assets, you will be allowed to bring in upto 100k without much problem (but you might have to prove that none of it is INCOME earned after landing.

Examples:

1. You declare in your first tax return that you have 200K in foreign assets. You can bring in that money whenever you want without any tax on it - however, you should be able to prove that you are bringing ONLY the principal amount and NO INCOME has been earned meanwhile on these assets. If you do earn any income on those assets, you are supposed to declare that income each year, and then you can bring in both the income and principal.

2. You have less than 100k worth of foreign assets and therefore legally you are not bound to declare it in your return. You will however be liable to declare any income earned on those assets each year and then whenever you want, you can bring in the whole money or in parts. Say you had 90k to start with - and you earned 5,000 in first year, 4,000 in second year and 6,000 in third year. In the first two years you will have to declare the income of 5 k and 4k. In the third year you will have to declare both the income of 6k and also declare in your return that now you have assets of more than 100k (if they have the market value of 100k). You can bring that money whenever you want.

Hope this will help you. good luck.

 

[mitali]

Hi ana_ana,

I made some research on this subject and what I found is noted here for your information:

The concept of taxation in Canada is based on income. There is no income being generated here at the start when the funds are brought in Canada. Once it is invested here, however, then there will be taxation based on the type of income generated, (e.g. interest, dividends, capital gains, etc.)

There is NO restriction in bringing any money any time - you can keep doing it for the rest of your life. Income Tax Act requires you to declare if you have foreign assets over CAD 100k in each of your returns. If you have more than 100 k worth of foreign assets and declared that asset in your first tax return that you file after landing, you can bring in that money without any tax liability. However, if you have NOT declared the foreign assets, you will be allowed to bring in upto 100k without much problem (but you might have to prove that none of it is INCOME earned after landing.

Examples:

1. You declare in your first tax return that you have 200K in foreign assets. You can bring in that money whenever you want without any tax on it - however, you should be able to prove that you are bringing ONLY the principal amount and NO INCOME has been earned meanwhile on these assets. If you do earn any income on those assets, you are supposed to declare that income each year, and then you can bring in both the income and principal.

2. You have less than 100k worth of foreign assets and therefore legally you are not bound to declare it in your return. You will however be liable to declare any income earned on those assets each year and then whenever you want, you can bring in the whole money or in parts. Say you had 90k to start with - and you earned 5,000 in first year, 4,000 in second year and 6,000 in third year. In the first two years you will have to declare the income of 5 k and 4k. In the third year you will have to declare both the income of 6k and also declare in your return that now you have assets of more than 100k (if they have the market value of 100k). You can bring that money whenever you want.

Hope this will help you. good luck.

Wilson...excellent research...appreciate it...+1

Mitali

 

[wilson]

Thanks mitali, Welcomes your support.

 

[ana_ana]

Thanks

 

[mute_man]

Hi ana_ana,

I made some research on this subject and what I found is noted here for your information:

The concept of taxation in Canada is based on income. There is no income being generated here at the start when the funds are brought in Canada. Once it is invested here, however, then there will be taxation based on the type of income generated, (e.g. interest, dividends, capital gains, etc.)

There is NO restriction in bringing any money any time - you can keep doing it for the rest of your life. Income Tax Act requires you to declare if you have foreign assets over CAD 100k in each of your returns. If you have more than 100 k worth of foreign assets and declared that asset in your first tax return that you file after landing, you can bring in that money without any tax liability. However, if you have NOT declared the foreign assets, you will be allowed to bring in upto 100k without much problem (but you might have to prove that none of it is INCOME earned after landing.

Examples:

1. You declare in your first tax return that you have 200K in foreign assets. You can bring in that money whenever you want without any tax on it - however, you should be able to prove that you are bringing ONLY the principal amount and NO INCOME has been earned meanwhile on these assets. If you do earn any income on those assets, you are supposed to declare that income each year, and then you can bring in both the income and principal.

2. You have less than 100k worth of foreign assets and therefore legally you are not bound to declare it in your return. You will however be liable to declare any income earned on those assets each year and then whenever you want, you can bring in the whole money or in parts. Say you had 90k to start with - and you earned 5,000 in first year, 4,000 in second year and 6,000 in third year. In the first two years you will have to declare the income of 5 k and 4k. In the third year you will have to declare both the income of 6k and also declare in your return that now you have assets of more than 100k (if they have the market value of 100k). You can bring that money whenever you want.

Hope this will help you. good luck.

wilson rulz!! +1 8)

 

[wilson]

Thanks mute_man