tax query
 

We would appreciate some help with a question regarding bringing personal goods/money into Canada to settle permanently and before a house/car have been purchased.
What are the ins' and outs'? Many thanks,
Gorleen

Re: tax query
 

You can import personal possessions tax free when you first settle in Canada. You create lists of goods accompanying and complete a goods to follow form. Customs will stamp your goods to follow form when you first arrive and you can use this to release your possessions from bonded storage when they arrive.

There is no tax on money if you have it before you settle in Canada. However, money laundering rules mean that you have to declare if you are carrying more than $10,000. The banks will do this on your behalf if you send the money by wire/bank transfer.

Re: tax query
 

Thanks Jonboye, I should have added, we landed and became PR's on December 14 2010. But are in an undecided situation re permancy. We are living with our family in NS at the moment, but they are looking at moving to Ont or BC in a couple of years. So we cannot yet settle permanently. Nothing has been finalised in the UK. It's a case of toing and froing for a while. We have heard that we could be bumped by Canada Revenue for a third of any profit made on the sale of our property in the UK. Is there any truth in this?
Also, when we had finished with the CBSA at Halifax Airport and had received our IMM 5292's she then said "now go and fill in more forms re your goods to follow, over there". So we did, but all the woman did was to usher us through, "no forms, you're good to go", we explained about the B4 and B4a forms we had prepared, but she didn't want to know. So we went. Did we miss anything?
Thanks for your time.
Gordon and Eileen.

Re: tax query
 

It is all a question of residency.

When you arrive in Canada to settle permanently (settle in Canada - it doesn't matter if you are unsettled within Canada) you have a one-off opportunity to import your possessions tax-free as settler's effects. At this time make sure the customs officer stamps your goods to follow list.

Between now and then make sure you don't stay in Canada long enough to be considered as settled here or you may lose the opportunity.

Re: the house sale it depends on when you become tax resident in Canada for income tax purposes. This is usually also the day you move here to settle permanently. Once you are tax resident in Canada then half of any profit you make from this point onwards is taxable in Canada. For clarity, the accrued profit you made in the UK before becoming tax-resident in Canada is not taxable here. The best advice is to get a valuation (even if it is just an estate agents suggested selling price) shortly before you move so you have some evidence to show the CRA if needed.

There is some more info here ... http://britishexpats.com/wiki/Tax_an...e_Sales-Canada

Re: tax query
 

Thank you, JonboyE. We greatly appreciate your advice and time. Very interesting what you say, we shall certainly bear all this in mind. When you say, just make sure you don't stay long enough to be considered permanent, how long is long enough? And finally, would getting our SIN's, Medical Cards and opening a bank account here contribute to a status of Permanence.
Once again, thank you so very much.
Gordon and Eileen.

Re: tax query
 

For income tax purposes 183 days in any year will do it. However, you can be in Canada for less than this time and still be tax resident. See the link below.

Yes. If you are a PR and enroll in a provincial medical plan then you will be treated as a tax resident. After all, you have to be resident in a province before you can enroll in its provincial medical plan. SIN and bank account? Maybe, but not necessarily so.

Here is a link to the CRA's page. I can't put it any better than they do. http://www.cra-arc.gc.ca/tx/nnrsdnts...sdncy-eng.html

Note that the Canada Border Services Agency (who will decide if your personal goods are to be classed as settlers' effects) uses a slightly different definition of a resident: Residents of Canada are defined as persons who, in the settled routine of their life, make their home, reside, and are ordinarily present in Canada.

Re: tax query
 

We cannot thank you enough, JonboyE. Excellent info and links. It has certainly saved us from a lot of headaches and clarified our position. And hopefully helped others too.
Gordon and Eileen.