Overseas income
May 3rd 2010, 4:56 pm
#1
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Overseas income
A question for anyone out there that has experience of this ..... we live in BC presently and earn here working in infrastructure ... we also have a passive income abroad in which we receive interest on investments in that country ... at present we leave all the interest accruing in the country it is earned in and now face declaring it here ... has anybody else gone through this with the tax authorities here,the interest earned has non residents withholding tax deducted at source at present but i guess we will have to pay income tax here on it as part of our world wide income ..... not sure at what rate etc ... any input would be great ...
May 3rd 2010, 5:16 pm
#2
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Location: White Rock BC
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Re: Overseas income
Yes, you have to declare it Canada. You will pay tax at whatever your marginal rate is. You get a credit for the withholding tax already deducted.
May 3rd 2010, 5:51 pm
#3
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Re: Overseas income
Many thanks for the reply .... is there a simple on line tax calculator that anyone knows about ? thanks.
May 3rd 2010, 5:53 pm
#4
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Re: Overseas income
May 4th 2010, 3:28 am
#5
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Re: Overseas income
Thanks,the calculator was useful .... but if the income is earned abroad are there any set offs that i can use here to reduce my lability ...... can i get it paid into an offshore account or similar ti keep it away from the tax man here ? many thanks,.
May 4th 2010, 3:37 pm
#6
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Location: White Rock BC
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Re: Overseas income
No. Income is still income and you have to declare it on your tax return. You can deduct bank charges and investment adviser's and accountant's fees.
May 4th 2010, 5:45 pm
#9
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May 4th 2010, 5:49 pm
#10
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Re: Overseas income
just wondering if anyone else operates an offshore account and whether it was legal ........ cheers.
May 4th 2010, 6:23 pm
#12
Joined: Sep 2008
Posts: 12,830
Re: Overseas income
Nothing wrong with having an offshore account, so long as you report the income. If you fail to report, it is fraudulently avoiding tax, if they catch up with you there are possible fines, penalties, imprisonment! Additionally they will hound you for life if they find out.
You can always give CRA a call and have a chat with them, they would be happy to advise.
There is no time limit for CRA to go back where fraud is concerned, so it could catch up with you 2 years down the road or 25.
You can always give CRA a call and have a chat with them, they would be happy to advise.
There is no time limit for CRA to go back where fraud is concerned, so it could catch up with you 2 years down the road or 25.
May 4th 2010, 6:55 pm
#13
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Posts: 33
Re: Overseas income
Nothing wrong with having an offshore account, so long as you report the income. If you fail to report, it is fraudulently avoiding tax, if they catch up with you there are possible fines, penalties, imprisonment! Additionally they will hound you for life if they find out.
You can always give CRA a call and have a chat with them, they would be happy to advise.
There is no time limit for CRA to go back where fraud is concerned, so it could catch up with you 2 years down the road or 25.
You can always give CRA a call and have a chat with them, they would be happy to advise.
There is no time limit for CRA to go back where fraud is concerned, so it could catch up with you 2 years down the road or 25.
May 4th 2010, 7:52 pm
#14
Joined: Sep 2008
Posts: 12,830
Re: Overseas income
There are ways of tax planning, this is why one hires an accountant. CRA are not going to give you tax planning advice, you tell them what you want to do, they tell you if its allowed, that is about it. If you are an employee you are pretty much stuck with claiming what allownaces you are entitled to, if you are self employed there are other avenues to explore. Like I say, hire an accountant.
May 4th 2010, 8:48 pm
#15
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Re: Overseas income
You kidding right - You are going to call CRA and ask them if they mind you hiding your money in an offshore account? Be sure to give them your SIN so they can follow up!
There are ways of tax planning, this is why one hires an accountant. CRA are not going to give you tax planning advice, you tell them what you want to do, they tell you if its allowed, that is about it. If you are an employee you are pretty much stuck with claiming what allownaces you are entitled to, if you are self employed there are other avenues to explore. Like I say, hire an accountant.
There are ways of tax planning, this is why one hires an accountant. CRA are not going to give you tax planning advice, you tell them what you want to do, they tell you if its allowed, that is about it. If you are an employee you are pretty much stuck with claiming what allownaces you are entitled to, if you are self employed there are other avenues to explore. Like I say, hire an accountant.
