Funds transfer after soft landing

[ExpressEntryStarr]

Hi Everyone, My family and I did a soft landing as PRs in 2018. We are planning on moving to Canada permanently next year (2020). When we move, I plan to transfer our savings to Canada which we will use to buy our house here. My question is, would I be subject to tax on this savings? Some of the money has been saved from before our landing in 2018 and some after. Just for reference, the amount is substantial (greater than CAD 350k). I didn't declare this on our goods to follow list, which submitted when we did our soft landing, because I wasn't aware whether funds to follow also need to be declared on the list.

Any advice would be much appreciated! Thanks.

 

[steaky]

Hi Everyone, My family and I did a soft landing as PRs in 2018. We are planning on moving to Canada permanently next year (2020). When we move, I plan to transfer our savings to Canada which we will use to buy our house here. My question is, would I be subject to tax on this savings? Some of the money has been saved from before our landing in 2018 and some after. Just for reference, the amount is substantial (greater than CAD 350k). I didn't declare this on our goods to follow list, which submitted when we did our soft landing, because I wasn't aware whether funds to follow also need to be declared on the list.

Any advice would be much appreciated! Thanks.

No taxes. No declaring of assets needed at time of landing.

 

[Hurlabrick]

Agree with steaky.

You will need to declare any remaining overseas monney, investments and assets on form T1135 when you complete your first years tax return once you land for good in Canada (and therefore become luable for Canadian tax). You will then only be taxed on growth, interest or income, and NOT the capital itself

 

[ExpressEntryStarr]

Thanks steaky and Hurlabrick. Much appreciated!

 

[kaceyx]

Hi guys,

I have the same situation, I landed last in August 2019 and I returned back after two weeks to my country.

I would like to know if there is a timeframe to transfer my money (Personal savings) to Canada before it becomes taxable. Or I can do it at any time before I return back to Canada as a settler?

 

[Steve75]

No taxes. No declaring of assets needed at time of landing.

No taxes. No declaring of assets needed at time of landing.

Hi, I am in a similar situation, can you pls share your experience.. did you wire transfer or did you carry a bank draft during your permanent landing in 2020

 

[steaky]

Hi, I am in a similar situation, can you pls share your experience.. did you wire transfer or did you carry a bank draft during your permanent landing in 2020

There is no such thing as permanent landing.

 

[Steve75]

There is no such thing as permanent landing.

I meant return to Canada as a permanent settler?

 

[steaky]

I meant return to Canada as a permanent settler?

When you carry in person a bank draft of over $10,000, you need to go to a designated counter in the first port of entry of the Canadian airport to make a paper form declaration. Otherwise, your bank will report your wire transfer.

 

[Steve75]

When you carry in person a bank draft of over $10,000, you need to go to a designated counter in the first port of entry of the Canadian airport to make a paper form declaration. Otherwise, your bank will report your wire transfer.

Thanks, Bank would report to CRA correct? is it advisable to do the online transfer instead once I’ve landed permanently?

 

[steaky]

Thanks, Bank would report to CRA correct? is it advisable to do the online transfer instead once I’ve landed permanently?

No, bank report to another government department (forgot the name). You can transfer anytime.

 

[jclarke99]

Agree with steaky.

You will need to declare any remaining overseas monney, investments and assets on form T1135 when you complete your first years tax return once you land for good in Canada (and therefore become luable for Canadian tax). You will then only be taxed on growth, interest or income, and NOT the capital itself

Be sure to note the valuation of your investment assets (e.g., stocks) on the day you officially move to Canada, as that may well determine your cost basis for Canadian taxes upon the time you sell such assets.