Adrian12

Hi,

Ive been in Canada for 3 years now and I'm in a very fortunate position that my dad (in the UK) wants to give me a gift of a significant amount of money.

I have set up a GBP account here in Canada and I intend to ask him to transfer the funds to that account.

I will then do a bit of speculation on when the best fx opportunity is and do some work on the best rates/broker etc.

Anyway, the question is will i be taxed on this amount? do i need to do anything to make sure i get the best outcome with the CRA etc?

Cheers

Adrian

Please excuse the terrible typo in the title - not sure how to edit it.

plasticcanuck

You will not be taxed in Canada on such a transfer. You will probably be required to report it to Canadian Government.

JonboyE

No tax. The bank transferring the money will report it. It might be an idea to keep a paper trail to show the amount is a gift. Unlikely you will need it but just in case.

Photoplex

I did this, but instead of sending all my money off to some shady ForEx broker, I called around for the best rate, and then asked TD (the bank holding the GBP account) to match the best rate I found.

They gladly did so. No risk, no hassle, no transfers to some shady broker wondering if you'll ever see it again.

christmasoompa

Thread title typo sorted for you.

Quinna

Interesting - I tried to negotiate with my bank here in Canada and got nowhere.

My experience has been that banks are not the way to go for a number of reasons.

The main reason is that a Forex broker gives you ultimate control in the timing of the transaction - this in itself has saved me thousands - a bank by comparison sets the rate for the day.

I can 100% understand your concerns using a Forex broker, but I think I have a solution - Use one of those that is registered with FINTRAC in Canada. I have been reviewing the ones who have offices in Canada for this very reason - security. It is probably overkill but I feel very sure my money is safe because regulations are so tough in Canada.

If timing is not so important and you can get your bank to come to the party on the rate - awesome, but just bare in mind to get quoted the best rates possible you need to call a Forex broker or register online. Many people just look at the interbank rates online which a bank usually adds 2 to 4% margin to.

Hope that helps!

Photoplex

Absolutely - it goes without saying to not use the bank rate. Call a bunch of ForEx brokers, get their best spot rate, and then call the bank immediately.

In my case it was the money from the sale of my house in the UK, so it was a substantial amount. TD did not want to lose out on the transaction. I was transferred to the internal treasury department, who authorized the matching of the ForEx rate.

Aviator

Some banks will and some won't depends on your relationship and the rate. We have had a rate match one day and had one refused another. I would not say FX brokers are shady, we use them often for small and large sums with great success. It is all done over the phone and internet transfer, money in the account in a day.

The rate bank branches offer is live, not set daily. With an FX broker you can book a rate, with a bank, you get what you get when you go into the branch. It can differ from the telephone indication rate.

ChrisCanning

Hi Adrian,

As you may have seen from other posts, I work in the foreign exchange industry. (I am not allowed to say which company because of forum rules). I have helped quite a few members in this forum with their transfers.

Do let me know if you have any questions regarding the timing of trades and rate queries. You will see from quite a few members on this forum who have used me that timing the transfer well can really make the difference of several hundreds, if not thousands, of $$$!

Regarding getting a better rate - Photoplex is absolutely right - the best way of getting a good rate is.... ask for a better rate! This definitely works when using a currency broker (not all of which are shady by the way!), but it can also work with the banks, especially if you have a personal account manager who you deal with.

Best of luck with your transfer, and let me know if I can help in any way.

Chris Canning.