Question is: is there any tax concern or considerations to make when transferring big sums of money for new permanent residents when doing international banking transactions into Canadian financial institutions?
Is there any amount of money to be hold by the Canadian bank (sort of banking tax) or any money held by default by CRA?
I’ve done a fair amount of research online and it seems like it’s the individual responsibility to declare his/her income to CRA. And CRA also states that transfers of more than $10K are reported by Canadian financial institutions. And that's perfectly OK.
The details of the particular case in question are these:
A 70 years old relative of mine became permanent resident of Canada last year (2017), through the parent-sponsorship program. She didn’t liquidate all her assets in her country of origin before becoming a resident in 2017 (because those things take time and she can’t handle all by herself given her age).
She is now liquidating her assets in her country of origin (selling primary residency and only house, furniture, and other material possessions). She has no savings or investment accounts that could trigger any type of capital gain or interest income or any type of financial assets. The only things being liquidated are her primary house and her material possessions that exist within that house. Taxes on the sales will be paid lawfully according to tax laws in her country of origin. The remaining amounts can sum up to a few thousand dollars. Let’s just assume $40K USD for the sake of discussion.
Then she will arrange to make an international bank money transfer in USD to her RBC USD account here in Canada. This transaction may not come from her bank account in her country of origin and instead from a friends account in the US (the reasons being she comes from a kind of dictatorial country where you can’t use local banks to do such thing as the Government owns them all and may take all her money away, same reason why she can’t go through the airport with that cash. It’s not worth elaborating on the social or political details of her country of origin, the goal of this question is oriented to Canadian taxation concerns of this international money transfer to Canada)
Bottom line: is there any concern this person should have or any action she should proactively take in terms of how CRA may tax or perceive this international money transaction?
The goal of the question is obviously to gain awareness of the implications, and by no means to avoid or escape from any Canadian tax obligation.
Thank you all for your help in advance. It’s greatly appreciated.
Is there any amount of money to be hold by the Canadian bank (sort of banking tax) or any money held by default by CRA?
I’ve done a fair amount of research online and it seems like it’s the individual responsibility to declare his/her income to CRA. And CRA also states that transfers of more than $10K are reported by Canadian financial institutions. And that's perfectly OK.
The details of the particular case in question are these:
A 70 years old relative of mine became permanent resident of Canada last year (2017), through the parent-sponsorship program. She didn’t liquidate all her assets in her country of origin before becoming a resident in 2017 (because those things take time and she can’t handle all by herself given her age).
She is now liquidating her assets in her country of origin (selling primary residency and only house, furniture, and other material possessions). She has no savings or investment accounts that could trigger any type of capital gain or interest income or any type of financial assets. The only things being liquidated are her primary house and her material possessions that exist within that house. Taxes on the sales will be paid lawfully according to tax laws in her country of origin. The remaining amounts can sum up to a few thousand dollars. Let’s just assume $40K USD for the sake of discussion.
Then she will arrange to make an international bank money transfer in USD to her RBC USD account here in Canada. This transaction may not come from her bank account in her country of origin and instead from a friends account in the US (the reasons being she comes from a kind of dictatorial country where you can’t use local banks to do such thing as the Government owns them all and may take all her money away, same reason why she can’t go through the airport with that cash. It’s not worth elaborating on the social or political details of her country of origin, the goal of this question is oriented to Canadian taxation concerns of this international money transfer to Canada)
Bottom line: is there any concern this person should have or any action she should proactively take in terms of how CRA may tax or perceive this international money transaction?
The goal of the question is obviously to gain awareness of the implications, and by no means to avoid or escape from any Canadian tax obligation.
Thank you all for your help in advance. It’s greatly appreciated.
