bringing money into Canada
#1
bringing money into Canada
Does anyone know if you have to pay taxes if you bring a large amount of money into Canada?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
#2
Re: bringing money into Canada
Originally Posted by Booo
Does anyone know if you have to pay taxes if you bring a large amount of money into Canada?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
#3
Re: bringing money into Canada
Originally Posted by iaink
No you dont, but you do have to declare cash in excess of $10k for money laundering prevention purposes.
#4
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Joined: Jan 2006
Posts: 1,010
Re: bringing money into Canada
Originally Posted by Judy in Calgary
As far as I know, the declaration is only necessary if you are carrying cash or a monetary instrument (like a bank draft) when you cross the border into Canada, e.g., when you arrive on an international flight. My understanding is that if you get a financial institution to transfer the money on your behalf, the institution automatically reports an amount in excess of C$10,000 to the government.
K.
#5
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Joined: Jan 2006
Posts: 1,010
Re: bringing money into Canada
Originally Posted by Booo
Does anyone know if you have to pay taxes if you bring a large amount of money into Canada?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
K.
#6
Re: bringing money into Canada
Originally Posted by kt0157
This is such a frequently asked question. I wonder why? Is there some Protestant puritan ethic that thinks those with wealth aren't really entitled to it and should pay more tax? Polly Toynbee would be proud!
K.
K.
No, it's just that there is hardly anything left that isn't taxed anymore s*x is gonna be next
#7
Re: bringing money into Canada
Originally Posted by Investor
No, it's just that there is hardly anything left that isn't taxed anymore s*x is gonna be next
#8
Forum Regular
Joined: Nov 2006
Posts: 266
Re: bringing money into Canada
Originally Posted by Judy in Calgary
As far as I know, the declaration is only necessary if you are carrying cash or a monetary instrument (like a bank draft) when you cross the border into Canada, e.g., when you arrive on an international flight. My understanding is that if you get a financial institution to transfer the money on your behalf, the institution automatically reports an amount in excess of C$10,000 to the government.
#9
Re: bringing money into Canada
Originally Posted by monique
What branch of the government gets notified for these type of transfers?. Hope not Revenue Canada as the purpose of declaring amounts over $10K is for money laundering and not for the purpose of getting taxed.
They probably share it with allsorts though, RCMP, CSIS, CBSA, there are so many branches its hard to keep track!
#10
Re: bringing money into Canada
Originally Posted by Booo
Does anyone know if you have to pay taxes if you bring a large amount of money into Canada?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
We have the proceeds of our house still in our UK savings and want to bring it over while the exchange rate is good but will we have to pay tax on it?
That's my understanding
#11
Re: bringing money into Canada
Originally Posted by Calgal
As an immigrant you don't have to pay tax on the cash from the sale of property - BUT you are supposed to pay tax on any interest/profit since your arrival in Canada and bringing the funds over.
That's my understanding
That's my understanding
#12
Re: bringing money into Canada
Originally Posted by Tidge
What happens if you have interest in a UK savings account, pay interest in the UK but don't touch the money? I assume I had to declare it as 'worldwide income' and prove I had paid some tax on the interest to avoid double-taxation?
#13
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Joined: Jan 2006
Posts: 1,010
Re: bringing money into Canada
Originally Posted by Tidge
What happens if you have interest in a UK savings account, pay interest in the UK but don't touch the money? I assume I had to declare it as 'worldwide income' and prove I had paid some tax on the interest to avoid double-taxation?
If you have a house rented out you need to pay tax on the rent, again allowing UK tax as a credit against Canadian tax. But you also need to declare foreign investments on your Canadian tax return. You need to tell them, but not pay tax on, foreign investments; this is used to keep tabs on the income that you declare. If they see that you own a portfolio of property in London, but mysteriously don't declare any rent, they can then start asking questions.
K.
#14
Joined: Apr 2005
Posts: 9,606
Re: bringing money into Canada
Originally Posted by Calgal
Yes you're quite right Tidge, you should declare it in Canada, and if you live in Canada the CRA gets first dibs. I think you have to arrange to get your interest paid in the UK without tax deducted as you are not resident there for tax purposes, otherwise it's quite likely you would pay twice (to both countries) as Canada will want their piece of the pie in any event. If I remember rightly though, it only applies to interest above $50.00
Certainly, if you are resident in Canada, the CRA wants to know about your global income, including bank interest, but they take into account tax paid elsewhere.
Here's an example. I've been living in Canada for six years and am most certainly resident here (and a citizen). I benefit each year from a trust fund in the UK. When I receive my annual cheque, I also get a tax certificate showing the gross amount and the amount of UK tax that has been deducted at source, which is about 10%. I could probably ask the trustees to stop deducting the tax as I'm not a UK resident but I've never got round to it.
When I file my Canadian tax return I disclose the gross amount of trust income. That forms part of the calculation of my total taxable income. I also tell them about the UK tax that has been paid and that is credited to me.
Thus, if the CRA calculates my total tax bill for the year at $40k (hypothetical number) and I show them that I have already paid $10k in UK tax, they will only come after me for $30k.
As an aside, if you find yourself in a similar situation, it's probably a good idea to include supporting paperwork with your tax return. Or at least keep it handy for when you get audited <retires to garage with bottle of scotch and trusty service revolver>
#15
Re: bringing money into Canada
Originally Posted by Souvenir
What you have said there looks rather iffy to me. There is a double-taxation treaty in place that prevents double-dipping.
Originally Posted by Souvenir
<retires to garage with bottle of scotch and trusty service revolver>