Recurring Overseas Funds : Leon, PMM, Rupesh Plz Advice : How to ?

[qorax]

Recurring Fund deposits at My Canadian Bank A/c from Overseas, Every Month

Dear Seniors,
Leon, PMM, Rupesh et all... PLZ ADVICE:

I expect to land at Toronto by Jan/Feb 2010, taken that my visas shall come thru by yr end (or Jan 2010). Plus/Minus few months is of no consequence to my query.

I have a running business overseas; and Every Month CAD 25,000 shall be coming into my Canadian Bank A/c, as part of my monthly remuneration. I would like to know:

1. What actions should I take to intimate the Canadian Govt. of this recurring overseas funds ?
2. Can I declare that upon landing at Toronto A/port ? Or what to do ?
3. I plan to bring a DD of CAD 100,000, which is more than my Proof of Fund reqiuirement, is it OK ?
4. Is there a Limit to the max funds allowed ? (I'm aware of CBSA 10,000 requirement, but nothing on a limit).
5. How would the taxation apply on both cases ?

I'd definitely appreciate your time at addressing my issues.

Regards.

 

[Karlshammar]

1. If you are wiring your money straight from your domestic bank to a Canadian bank there is no specific action to be taken. This is a perfectly legal, everyday occurrence.
2. You don't need to declare money being wired into the country, only money that you are physically bringing with you into the country.
3. What's DD?
4. No, no limits on legally obtained money.
5. This is beyond me.

 

[rupeshhari]

I have no answer to any of these questions because I am far away from landing so haven't investigated this. But I would like to see the answers to your questions.

 

[qorax]

Thank you Karl, for taking time at responding to my query.

Could you kindly advice further on:
1. The monthly sums shall be wired from my overseas company bank a/c. Is that OK, or they should deposit that in my Personal Overseas Bank a/c & then I deposit that a/cs chq in my Canadian Bank a/c?
2. Are you sure that I do not need to declare anything? Won't the Govt. like to know from where & why monies are coming into my a/c every month?
3. They (the Canadian Govt.) would sure like to tax those amounts, No?

Sorry for the abbreviation. By 'DD' I meant Bank Draft / Bankers' Cheque.

Warm regards.

 

[qorax]

I have no answer to any of these questions because I am far away from landing so haven't investigated this. But I would like to see the answers to your questions.

Thanks Rupesh, for being candid...

 

[toby]

1. What actions should I take to intimate the Canadian Govt. of this recurring overseas funds ?
2. Can I declare that upon landing at Toronto A/port ? Or what to do ?
3. I plan to bring a DD of CAD 100,000, which is more than my Proof of Fund reqiuirement, is it OK ?
4. Is there a Limit to the max funds allowed ? (I'm aware of CBSA 10,000 requirement, but nothing on a limit).
5. How would the taxation apply on both cases ?

Answers:
(1) No need to inform the Canadian government. Your receiving bank in Canada will do its own due diligence to assure itself that the source of the funds is legitimate.

(2) and (3) If you have the bank draft with you, yes, you need to declare it on the customs form you will get on the airplane before you land. Because the amount is large, it might help if you had some means of showing the source of the money – contract selling a house, or a letter from your accountant or bank -- something to show the source of the money.

(4) No limit for legitimate money.

(5) No tax on money you bring into the country. Presumably you paid tax in the home country, but that is between you an the home country. Once the money comes into Canada, if it accumulates interest, or you invest it and receive investment income, that income is taxable in Canada. You will get tax receipts from our Canadian bank and/or from the financial institution where you invest that tells you what to put in your annual tax return.

Unless your cost of living is extremely high, you will be accumulating a lot of money in Canada. I’d think a primary concern would be to find a financial adviser (both for investments and for taxes) that you can trust.

Good luck.

 

[qorax]

Thank you, Toby. That was detailed... I deeply appreciate.

-Your (2) & (3): I'll get my current bank statement (home country), showing the partial amt deducted for the DD (Demand Draft). I hope that'll suffice.
-Your (5): I understand that.

In 6-7 months most of it'll be diluted in purchasing a house. Thereafter, I'll pay heed to your advice on financial mgmt. Off course, I'll be needing some of these funds + further, for establishing my branch office at Toronto.

I guess, another chunk of money, which comes for the business establishing shall be accepted as Capital Investment. Thru, this new org at Toronto my accounts dept. shall address further.

Thanks once again, Toby.

Warm regards.

 

[toby]

A printout of your bank statement might not be enough to show the provenance of the funds, qorax. On the principle that more documentation is better than less, when dealng with bureaucracies, you might consider getting a letter from your bank manager saying where the money came from.

Maybe I seem overcareful, but times are changing. After Costa Rica decided to try to satisfy OECD countries that it was not a money-laundering haven, the banks got more catholic than the Pope. When I sold my house there, the bank -- which had known me for years -- demanded a copy of the sale contract before it would accept a deposit of the proceeds -- even though I was depositing a certified cheque issued by anmother Costa Rica bank!!

So, a letter from your bank manager should be easy to get, much easier when you are there and not in Canada, and could smooth the way.

On investments. I don't know the situation in your home country, but in Canada few financial advisers try to charge large commissions anymore. And almost no one puts clients in "back-load" mutual funds. So, if you are interviewing an advisor, and she or he has not explained up front how he gets paid, ask him. If he mentions back loading, or a rather high commission, but had not mentioned it up front, I'd take that as a sign of stealth, and walk away. If he was trying to hide his method of payment from you, what else might he hide?



how s/he gets paid. If you dont like the

 

[qorax]

Dear toby,

Thanks once again. I got it...
-for the bank statement, I'll get the bank letter, as well as 6 months statements, showing the balances, mode & sequence of remittances.
-for the fin.advisors, I stand cautioned (but so is here).

Regards.
---------------------------------------------------------------
Dear all,

For the recurring funds, I take it then that "getting regular amts in a Canadian bank a/c is no probs", Right?

Thanx & regards.