Transfering money from abroad

[aira88]

Good day all,
Congratulation for the excellent site. Here is a hypothetical question.
How about if a relative new immigrant (4 years) wants to transfer to Canada less than 50,000 dollars? They are from and inheritance and will be invested in Canada.
What entity has to be informed, if any? How much are the capital gain taxes for investing?
Thank you.

 

[Gary Goldshmidt]

This is complicated but assuming they are not a Canadian they would have to still deal with any estate or tax issues within their jurisdiction. Once the money is available for transfer you can bring it over, keep all documentation so the money can be traced. You will need this for CRA and also for FINTRAC reporting. It is always best to consult an accountant or tax lawyer especially if it is a large sum. I am an advisor not a specialist in estate tax, international tax or accounting these rules change annually that is why people hire a specialist.

 

[seton]

Inheritances are not taxed in Canada. But as Gary said, the taxation would happen within their home country first.

It is actually fairly simple from the Canadian standpoint, but will be as complicated as the tax laws are in the home country.

 

[Gary Goldshmidt]

I have many clients from abroad that had to deal with large estates and tax issues. Some cases are straight forward but more often you run into complex tax issues where it is best to get professional advice, this is far less expensive than trial and error when it comes to dealing with CRA.