dont know about double tax in canada. thats already answered but if you choose nz you will get double taxed. got that one from the nz site

According to CRA's Interpretation Bulletin IT-221R3 paragraph 16:

In addition, the CRA considers that where an individual entering Canada applies for and obtains landed immigrant status and provincial health coverage, these ties will usually constitute significant residential ties with Canada. Thus, except in exceptional circumstances, where landed immigrant status and provincial health coverage have been acquired, the individual will be determined to be resident in Canada.

For garync landed immigrant status is the same as permanent residence.

Conceptually, I have trouble with someone having sufficient residential ties in one country to be deemed a tax resident and at the same time have a principle residence in another country, but that seems to be the way the law works.

Hi Judy

Thanks for the feedback, that's clearer now. You have mentioned to me in the past about that complication and I now see what your getting at.

Thanks

Gary

Thanks also JonboyE

The picture is gettin clearer.

Gary

I sold my house in Scotland to put a deposit on a new house here. Will i be taxed on the amount I made?

No.

There is no tax on any profit made from the sale of you principal residence in Canada.

The sale of you house in Scotland really should be of no concern to the Canadian tax officials.

Canada Revenue Agency's general rule is that, when a person sells his/her principal residence, he/she does not pay capital gains tax if he/she sells the house for an amount that is greater than the amount for which he/she bought it.

That is, if the value of the principal residence grew during the time that owner owned it, the owner does not pay capital gains tax on the profit that he/she makes when he/she sells it.

The above rule applies if a person buys a house in Canada, while he/she is a tax resident of Canada, and then later sells that house, while he/she still is a tax resident of Canada.

However, it's impossible to answer your question without knowing when you moved to Canada and became a resident of Canada for tax purposes and also knowing when you sold the house in Scotland.

If you sold the house in Scotland before you moved to Canada, Canada Revenue Agency (CRA) has no interest in it.

If you sold the house in Scotland after you'd become a resident of Canada for tax purposes, then CRA does have an interest in the topic.

The Wiki on Tax and House Sales explains the concept.

Postscript. I assume that Steve_P responded as he did because he surmised that you'd sold your house in Scotland before you'd become a resident of Canada for tax purposes (or perhaps he knew this to be the case from another post or discussion thread in which you may have mentioned the timing).

It amazes me that Canada taxes people on their abroad income and that officers will try hard to find any income one may have outside the country....:curse:

Why? Every other country does the same, to an extent. If you are claiming to be resident in Canada, then pay the country any taxes due.

I agree, you have to pay tax and the trick is where you pay it, the international tax treaty is there so you pay the tax and reaps the benefit of the services that tax pays for.

You just have to make sure that you have a good paper trail for any £££$$$ you make.

As in the UK, Canada has accountants that can creatively channel monies you earn, where ever you earn it, but still, you have to pay your tax.

Hmmmm Tax!


A thoroughly interesting and complex arena.....

I am

When we leave, there are a number of people who will owe us money - family loan in time of crisis. The deal is for them to make a monthy payment into our bank account.

Will that be taxable?

Having already paid the tax on my earnining it in UK in the first place?



Thanks

Kelly

How much interest are you charging them? I'd imagine that would be taxable.

As bazzz says, interest is taxable, repayment of principle isn't.

would this "loan" need to be declared on paperwork?

I was under the impression that a Husband & Wife could designate separate properties as their principle residence for tax purposes. That always used to be the case, but they might have changed the rules without telling me.

Professional advise is called for.

Unfortunately once you get into international tax law your average Accountant can be out of their depth. You may have to consult with one of the bigger firms who of course charge bigger fees.