Money received after landing

[zygurn]

Let's pause on the $800 before rushing to pay taxes on it.

Why is it being returned to you?

If it was a bond or some other after-tax money you deposited, and now it is being returned to you, it is not income per se but rather a "return of capital", and not taxable.

So, if you'll explain the original source of the money, we can give better advice. In any event, $800 is not going to generate much tax.

Well, it's tax money. I pay 1.5% of my salary to the government in order to safekeep it so when I want to buy a house I can request and the state finances the house, at least that's the idea of the tax. It's an obligatory tax whether you own your home already or not. Since it's more like money you saved with the state, you can request it back at any moment but conditions apply, in my case, since I'm moving out of the country, I can take it out as soon as I prove my residence elsewhere. I know $800 isn't much, but I just wanted to make sure whether I had to report it or not. I guess you could call it a bond.

 

[Karlshammar]

Since you earned that money before you moved to Canada, it should not be taxed, but I can't tell you for sure. Try asking the CRA.

 

[toby]

Suin, if you want to be extra careful, take a snapshot of your statement showig the $5,000 savings. CRA is very unlikely to wuestion you, but if they do you can show them that the money was in your account, and therefore tax-paid in your former country of residence.

 

[toby]

Zygurn:

If the 1.5% of salary paid to the government was taxed, then there is no further tax to pay -- either in your home country or in Canada. It is a "return of capital".

If the $800 came off your taxable income in your home country, then presumably it is taxable in your home country before they send you the rest. This again would not be taxed in Canada. It is like after-tax savngs being transferred from abroad to Canada. No tax.

If you paid no tax on the $800, and your home country gave it back to you without withholding any tax, then theoretically you should pay tax in Canada, but this would be such an odd situation, one not envisaged in Canada's tax returns, that I don't know you should treat this.

Maybe -- in the Canada tax return -- increase your Canadian income by $800, and explain in a cover letter why you have done so. Canada might award you a medal for excessive and highly-unusual honesty.

 

[zygurn]

Maybe -- in the Canada tax return -- increase your Canadian income by $800, and explain in a cover letter why you have done so. Canada might award you a medal for excessive and highly-unusual honesty.

Hahaha. Thanks for the advices, guys.

 

[lino]

PM

PLEASE ASSIST WITH THIS, I PLAN GOING BACK TO MY COUNTRY TO MY WORK 3 MONTHS AFTER LANDING IN CANADA.I WILL RETURN AFTER A YEAR WITH MORE OF THE INCOME FROM MY COUNTRY (NIGERIA) DO I NEED TO TELL THEM THIS AT THE BORDER? WILL I DECLARE THIS CASH AGAIN AT THE BORDER? WILL I PAY TAX ON THIS MONEY WHEN I WANT TO DEPOSIT IN MY BANK ACCOUNT IN CANADA? THANKS

 

[Suin]

Suin, if you want to be extra careful, take a snapshot of your statement showig the $5,000 savings. CRA is very unlikely to wuestion you, but if they do you can show them that the money was in your account, and therefore tax-paid in your former country of residence.

in my country they do not take tax on personal savings. they deduct taxes right from the salary. these savings are from salary, and I don't have any pay stubs left as I quit my job almost a year ago.

 

[Karlshammar]

It's the same in Canada. I think what the poster meant was that if you had them in your home country, you obviously paid taxes on them, so they are already taxed.

(Canada does charge tax on any interest or dividends on savings, by the way, except for a few tax-free or deferred investment vehicles like RRSPs and TFSAs.)

in my country they do not take tax on personal savings. they deduct taxes right from the salary. these savings are from salary, and I don't have any pay stubs left as I quit my job almost a year ago.

 

[Suin]

It's the same in Canada. I think what the poster meant was that if you had them in your home country, you obviously paid taxes on them, so they are already taxed.

(Canada does charge tax on any interest or dividends on savings, by the way, except for a few tax-free or deferred investment vehicles like RRSPs and TFSAs.)

what's the point of having dividends then. :

 

[Karlshammar]

You get to keep what's left over of them after tax.

what's the point of having dividends then. :

 

[anasob]

Dear PMM

I am planing to buy a house in Canada and i want to transfer around 100K from my previous account in another country where i used to work , do you think i will be taxed on this amount ?

by the way am a permanent resident of Canada since 3 years

thanks in advance

 

[PMM]

Hi

Dear PMM

I am planing to buy a house in Canada and i want to transfer around 100K from my previous account in another country where i used to work , do you think i will be taxed on this amount ?

by the way am a permanent resident of Canada since 3 years

thanks in advance

No.

PMM