Transfering money and Tax

[archerx]

Hi

I am PR in Canada and thinking of buying a house, my parents are willing to help me financially for down payment

My inquiry is about transferring money from my own country and tax issue. I have not declared any income abroad to CRA.

1- Is there any limitation to transfer money from abroad to Canada?
2- If my parents transfer money to my Canadian bank, Is there any issue related to tax or CRA ?

Thank you

 

[Amadan123]

Hello Archerx,

First and foremost, as a resident of Canada for tax purposes, you must report and disclose, and pay taxes on your worldwide income.
The key thing to remember is the distinction between 'earned income' abroad and 'after-tax funds'. Discerning between these two concepts can be very confusing.
Income earned abroad will be taxed in Canada, if you are a resident of Canada for tax purposes when it was earned.
After-tax funds in your foreign country accounts can be transferred into Canada without worries. These funds are incomes that already had tax levied on them.

Considering the above, is there a limitation? No. Is there an issue with the CRA if someone transfers money over? Not necessarily.

The main thing to remember as a Canadian resident for tax purposes is that your tax reporting and payment obligations result from your worldwide activities: earned income anywhere in the world, foreign bank accounts (with certain rules, etc.).

This is a complicated matter and it should be taken seriously, so please consult someone for more tailored advice.

Madan Chartered Accountant team
www.madanca.com

 

[Haiderzaidi]

I'll come again to the question asked, say about my case, my father is a senior citizen, the money he got its non taxible... same as above my father would be supporting me to buy a house.. is it better to get it simpley transfered through bank accounts or what if I carry on me.. bank statements would be sufficient ?

In general terms, is there any canadian governmnetal requirment or limitation that only a a certain amount is say $10,000 is ok to transfer between acounts once it exceeds in austarlia we are then required to provide the documentations & the amount will be taxed. In order to escape from tax, multipule transactions are to be of $10,000 until the amount is reached.

thanks

 

[Amadan123]

The transfer of funds in itself is not taxable. There is no limit of transfer either.

The reporting of foreign funds/properties for Canadian tax purposes becomes a requirement if you have foreign funds and properties that are more than $100,000.

Madan Chartered Accountant team
www.madanca.com

 

[Haiderzaidi]

Thanks you Allan Maddan. I owe you man !

 

[Hasni]

Dear Amadan123,
In my situation, I landed in Nov2013 for two weeks and came back, then went to drop my family three months ago and came back again. Now I plan to move for goods in March2015. Meanwhile I have also obtained G license, got health card, and settled my family in Canada. Altogether I have lived for around 75 days in Canada so far. Now I plan to file a tax return in coming April. Three questions
1. Am I a resident for tax purposes.
2. Would my worldwide income be tax exempted !
3. If I transfer all my savings to Canada now, would my money be questioned, would I be asked to justify the amount, would it be tax exempted !

Thanks