do I need to declare the amount of money I’m going to wire into Canada when I do my landing ? I am trying to avoid it being taxed. I heard only income is taxed. So how does CRA know if the amount I wired is new income or old savings if I don’t declare it upon landing. Thank you..
Wire money into Canada after landing
- Thread starter Tokibaee
- Start date
With the CRS, I'm not sure it's up to the OP if he's from one of those participating countries:
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/enhanced-financial-account-information-reporting/reporting-sharing-financial-account-information-other-jurisdictions.html
Not sure this applies to the OP’s question. Simply bringing money into Canada does not automatically incur tax. CRS happens at a financial institution. There is still nothing to declare at the border, as long as you are not carrying $10,000+ in cash or cash-like instruments on your person. For example, there is no law that requires you to declare money that you control in a bank account when you land (unless of course it is a condition of your immigration stream).
The OP question is about wiring money to Canada. To wire money, one need to go through financial institutions. That's where CRS might kick in.
I've read somewhere:
"A practical policy for keeping things absolutely clean with the CRA is "Cash into Canada, then you, then your goods". In that order. Note: This is not an absolute "must", but it provides one simple benefit: You never have to explain where money you bring in after you return back comes from!"
But when someone move their money offshore before coming to Canada, how do they explain the money? They still have to list them in their Canadian tax returns, don't they?
Btw, thanks for the link. I didn't know it was so difficult to bring a dog to UK from a non EU country!
I think it depends on when someone became a tax resident of Canada, whether the money was from savings or earned during the year. In my case I am selling my stocks (plus saving) and bringing the money to Canada before landing to finance a property purchase. As far as list the money on Canadian tax return - I do not think so.
Residency is determined annually. If it is determined that a taxpayer was a resident at any time during the year, that taxpayer is considered to be a resident for the whole year. There is an exception for a “part-time resident” under section 114 of the Income Tax Act of Canada (ITA). Under this provision, if a taxpayer enters or leaves Canada permanently, the taxation year will be split and the taxpayer will be categorized as a “part-time resident.” Part-time residents are subject to special rules for calculating income, including income-splitting; however, this will only arise in the year that the taxpayer enters or leaves Canada permanently....
Here is another interesting link for determining residency for Canadian Taxation purposes:
https://www.pushormitchell.com/2014/05/determining-residency-canadian-taxation-purposes/
Question: Hi there,
Just wondering if money is brought over from India from one's savings from years ago thru a bank and about 13% tax was paid for a retired canadian citizen collecting pension in Canada.
Will it be added to their income, what can other the tax implications be?
Thanks
Just wondering if money is brought over from India from one's savings from years ago thru a bank and about 13% tax was paid for a retired canadian citizen collecting pension in Canada.
Will it be added to their income, what can other the tax implications be?
Thanks