Tax on personal funds that will be moved to Canada over the next several years

[Deleted member 1083629]

Hey guys,

My spouse and I just became PRs and we will be moving to Canada as soon as we complete some things. My funds are in Canadian banks and thus, the question is about my spouse:

1. My spouse has had a bank account since 2017 and another one since 2019/2020. Her proof of funds were not part of the PR application, as only PA (me) had to provide it. We are planning to bring those money as cash in several trips. We cannot do SWIFT transfer, unfortunately, and thus, the only option is Cash or Western Union. I am aware of informing the agent on the border about bringing more than 10K CAD/person but what about tax? Are there any documents that we have to get from our bank that show that the bank account was opened before she even applied for PR? I don't want her to pay tax on the money she saved over the years.
2. It will take us several trips over the several years (forecasting about 3 years) to move money by cash. Is there a timeline after which CRA can start taxing those money?

Thank you for advise.

 

[YVR123]

Hey guys,

My spouse and I just became PRs and we will be moving to Canada as soon as we complete some things. My funds are in Canadian banks and thus, the question is about my spouse:

1. My spouse has had a bank account since 2017 and another one since 2019/2020. Her proof of funds were not part of the PR application, as only PA (me) had to provide it. We are planning to bring those money as cash in several trips. We cannot do SWIFT transfer, unfortunately, and thus, the only option is Cash or Western Union. I am aware of informing the agent on the border about bringing more than 10K CAD/person but what about tax? Are there any documents that we have to get from our bank that show that the bank account was opened before she even applied for PR? I don't want her to pay tax on the money she saved over the years.
2. It will take us several trips over the several years (forecasting about 3 years) to move money by cash. Is there a timeline after which CRA can start taxing those money?

Thank you for advise.

You don't pay tax on savings or moving money that you already have to Canada.

You pay tax on interest earn, income and captial gain (if you sell stocks and have gain from selling them) after you become a tax resident.
Also foreign assets over certain amount (check CRA site) will need to be declared in tax return. But not taxed.

 

[Deleted member 1083629]

You don't pay tax on savings or moving money that you already have to Canada.

You pay tax on interest earn, income and captial gain (if you sell stocks and have gain from selling them) after you become a tax resident.
Also foreign assets over certain amount (check CRA site) will need to be declared in tax return. But not taxed.

Thank you.

I do have a question about the foreign assets. I have an apartment in my name in my home country but I have never reported it in my previous tax returns (as a masters student). Does that mean i will have to amend those forms? Or simply report that foreign asset when I file the first time as a PR?

 

[YVR123]

Thank you.

I do have a question about the foreign assets. I have an apartment in my name in my home country but I have never reported it in my previous tax returns (as a masters student). Does that mean i will have to amend those forms? Or simply report that foreign asset when I file the first time as a PR?

It's better consult an accountant for this. I am not sure which way it should be.

 

[a21]

Thank you.

I do have a question about the foreign assets. I have an apartment in my name in my home country but I have never reported it in my previous tax returns (as a masters student). Does that mean i will have to amend those forms? Or simply report that foreign asset when I file the first time as a PR?

There is a section on Tax return that whether you own a foreign property worth more than $100,000 Canadian dollars. You can check that section when filing taxes for first time as PR. If your apartment in your home home country is not worth $100,000 or more in Canadian dollars, then you don't have to worry.

I have been member of this forum from last few years. I would be glad to assist in any information needed regarding taxes or refer you to a qualified accountant, home buying and mortgage approval process. I am CPA, CGA (Chartered Professional Accountant) and Real Estate Sales Representative for more than 15 years. I have extensive experience working with First Time home buyers and genuinely understands the challenges faced throughout the whole process of mortgage approval through finding the suitable property till settling down in your new home. I have diversified experience in Mortgage, Real Estate and Accounting industry.
Let me know, if i can assist you with any information or services regarding this.

 

[Copingwithlife]

Thank you.

I do have a question about the foreign assets. I have an apartment in my name in my home country but I have never reported it in my previous tax returns (as a masters student). Does that mean i will have to amend those forms? Or simply report that foreign asset when I file the first time as a PR?

You file a T1135 . You MUST file this form . Failing to be compliant can lead to extremely high penalties

 

[Deleted member 1083629]

There is a section on Tax return that whether you own a foreign property worth more than $100,000 Canadian dollars. You can check that section when filing taxes for first time as PR. If your apartment in your home home country is not worth $100,000 or more in Canadian dollars, then you don't have to worry.

I have been member of this forum from last few years. I would be glad to assist in any information needed regarding taxes or refer you to a qualified accountant, home buying and mortgage approval process. I am CPA, CGA (Chartered Professional Accountant) and Real Estate Sales Representative for more than 15 years. I have extensive experience working with First Time home buyers and genuinely understands the challenges faced throughout the whole process of mortgage approval through finding the suitable property till settling down in your new home. I have diversified experience in Mortgage, Real Estate and Accounting industry.
Let me know, if i can assist you with any information or services regarding this.

It depends if it’s being used for personal reasons or not. It states on Cra website. If it doesn’t generate income (like in my case), then no need to report.

 

[Deleted member 1083629]

You file a T1135 . You MUST file this form . Failing to be compliant can lead to extremely high penalties

I mean it leads to 2500 CAD fine per year with the first year being dropped if one didn't file that form. Regardless, if the apartment is used for personal use, then no need to report it even if costs more than 100k. It’s on cra website

 

[kuldip25]

My son is moving to Canada in Feb., 2023 on PR. His wife is Principal Applicant and he is dependent.
Please advise how and in whose name he should prepare bank draft {of how much CAD} . Whether he can prepare 2 nos. Demand draft be in the name of both. The total carrying limit is CAD10000 each person.

 

[Deleted member 1083629]

My son is moving to Canada in Feb., 2023 on PR. His wife is Principal Applicant and he is dependent.
Please advise how and in whose name he should prepare bank draft {of how much CAD} . Whether he can prepare 2 nos. Demand draft be in the name of both. The total carrying limit is CAD10000 each person.

Doesn't matter really. There is no carrying limit from Canadian end; just need to declare on the border. If your country has some limitations, then you need to worry about that.

How much CAD depends on individual situation. The more, the better. If your son/his wife don't have jobs yet, then try to get as much as possible.