evets

Yes I understand that, but seems to me like a cash grab. The UK IR deem I do not have to tax, but the Canadian Gov will want to grab money from me.

The money never leaves the UK. Yes I understand I am potentially not taking CA$ back to the UK to spend, but WTF. I still spend them in CA!

Seems like if I am big corporation and create an off shore bank account, then you can get away with anything. Trying to be an honest citizen means you get screwed.

If and when I get round to selling the property, I will have to pay CGT to the UK IR.
Will the Canadian IR, also want a slice of the sale.

EDIT: Say I decide to leave Canada before I become a citizen, then any money abroad should not be deemed as income and thus I believe I should be able to claim back any tax.

Aviator

You would report the sale and achieve a gain or loss situation by using the difference between the written valuation (in CAD) from the day you became a tax resident and the final sale price (in CAD). If you keep the money in GBP, use the BOC rate. If you eventually bring the money to CAD, there may also be a capital gain on any change in the FX rate from when you received the GBP and when you did the exchange.

If you paid CGT in the UK on the sale of the property, you can claim a tax credit for Foreign Tax Paid. If tax in Canada would have been higher, CRA will bill you for the difference. If tax in Canada would have been less, you can feel better knowing CRA want take any more from you

Citizenship is irrelevant to tax status, one can be liable for tax as a visitor in certain circumstances. You are still liable for any taxes on world income up to the date you cease to be a tax resident. You may also be liable for departure tax if you move out of Canada and cease to be a tax resident. You don't to get choose tax residency, your personal situation dictates that.

CRA and HRMC share information.

https://www.canada.ca/en/revenue-age...cy-status.html

https://www.canada.ca/en/revenue-age...emigrants.html

This is my interpretation, not professional advice. If I had to give any advice, it would be to get professional advice from a good accountant.

evets

Thanks Aviator, for the breakdown. Makes more sense now. Kinda still feel I am getting screwed by both Canada and the UK. The joys of relocation!!!

I understand the last statement, being flippant. And yes a good accountant is what I probably need.

Still do not fully understand, do banks and the tax office share any of this information with the new country? How would the Canadian tax office know or be aware?
Probably a dumb question with a reasonable answer, I suppose!

Any recommendations from anyone in Mississauga for a good accountant?

Aviator

UK banks are asking for personal information and SIN from Canadian residents with UK accounts. CRA and HRMC share information, what, how and how much, no idea.

Canadian tax system largely relies on an honor system. And a rat line! Always better to do it right, can save a world of grief in the future.

evets

Cheers Aviator again. Yes I agree but hate the fact I am being screwed with tax esp since the UK IR deemed me as clear. Why does the CA IR need to complicate things.

As I said before, being a large company and creating off shore accounts works in favour for you. Shame about the shrimps.

Not going to dig deeper on the honour system, but have a good idea!!!

Aviator

Nothing to dig deeper about. It relies on taxpayers being honest. CRA get most information anyway, they then check what they have, with what the payer submits. Very expensive to miss of a T4, T5 or something they already know about. CRA also randomly audit individuals, so one never knows when one will get lucky.

Shakyuk

Thank you


This is a good thread.


If it makes you feel better, Google made a settlement with the HMRC, 'experts' estimate they paid maybe 30% of the tax they owe... Shortly after Google confirmed they'd be building their 1 billion office building in London. I won't say it's corrupt because we live in the West, and corruption only exists in China and Russia... or so the elite owned media would have us believe.


One rule for them, one life time of being bent over for us... now where did I put my tin foil hat...

evets

Thank you all for the replies and comments. Very appreciated.

Snowy560

If you are resident in Canada you need to abide by the tax rules which are to declare your worldwide income and assets (if the latter are over $100,000. So the fact that some of the income may be UK income and not taxable in the UK or under some UK limit or other is irrelevant.
Example: we sold our UK house in 2015 and because of when we sold, there was no CGT to pay for non residents. However, because we were tax resident in Canada, we had to declare what we made on it to the CRA over and above the value when we emigrated and had to pay CGT in Canada on that amount. It was painful but I got over it quickly.

Before we sold the UK house we rented it and the income was declared both to HMRC and the CRA.

If you pay tax on earnings of any kind in the UK, you declare the tax you paid to the CRA and you'll be credited for it as per the double taxation agreement between the 2 countries.

evets

Thanks Snowy. Appreciated and understood.