I have a question in regards to Taxes in Canada. If I bring money over to Canada that has already been taxed in the UK, will I still have to pay tax on it?

Also, will I end up paying any back tax for the last 4 years i've been away?

I did try to contact the guy who did my tax in canada, but he never answers his phone unless it's tax season.

If anyone knows how this works, I'd appreciate the advice.

Thank you!

No.

If your money is in anything but Canadian funds, you are subject to cattail gains tax on the FX, any earnings (interest etc) must also be reported on your tax return. The clock is ticking from the day you become a tax resident again.

If you did not sever ties with Canada, and were a tax resident while you were away (by CRA definition not yours), it gets more complicated and you may be subject to taxation in Canada. For this you would need to prove the tax you paid in the UK and claim it as foreign tax paid and then CRA want the difference.

It is not quite as simplistic as this, you should seek advice from an accountant, rather than just a tax preparer. Personally, if I had a tax adviser I could not get hold of year round, I would be looking for a new one.

http://www.cra-arc.gc.ca/tx/nnrsdnts.../nnrs-eng.html

Yes, this is what I tried to find out...but yeah, it was to no avail. The money I would bringing was an inheritencE on my oh side ...and the tax has already been paid. You're right, I should find a new accountant.

There is no inheritance tax in Canada. The FX and any earnings on the money would be an issue though.

I don't quite understand how you can be charged tax for the fx...aren't u just getting what it's worth at the time??

Thank you for answering my questions btw.

At the time you re-establish tax residency in Canada the tax cost of all your assets is calculated. The tax cost of foreign currency (e.g. £) is calculated using the exchange rate of the date you re-establish your tax residency. If you subsequently change the amount into CAD at a different rate you will likely have a capital gain or loss.

You are getting what its worth at the time, but if that worth is more than when you arrived in Canada, the increase is subject to taxation.

Any gain in value of currency, stocks, shares or most other negotiables are subject to tax on disposal. Any property you own that is not personal property or a principal residence is subject to tax on disposal. If you arrive in Canada and the GBP you hold is worth $100,000 when you arrive, you hold on for an improvement in the FX rate and say you get $130,000 for the GBP when you eventually exchange it, $15000 is subject to capital gains at your marginal rate. Each persons situation is different, so you may be well advised to seek professional advice. The rules are pretty much the same going the other way, Canada to the UK as well.

http://www.cra-arc.gc.ca/E/pub/tg/t4...tml#P927_70485

Coming back to Canada also depends for tax purposes what you did when you left the country if you were a tax resident at that time.
http://www.cra-arc.gc.ca/tx/nnrsdnts.../lvng-eng.html

I understand now... Hmm it looks like it could get tricky...we will have to look into this now... Thank you guys for answering...I have no clue about this stuff.

For the FX, if you do the exchange before you arrive or pretty soon after, it may not be a problem, does depend on your personal tax situation though since leaving Canada.

Im pretty sure I'm a non resident... From what I've read. But I do understand that if we stand to gain from the money that the extra will be taxed...thats-about all I understand lol. I mean I paid tax before I left Canada so I didn't leave owing anything and I paid tax here when I was working and this year, I've been out of work so I've not paid anything.