PR retention

[Mona M]

Hi, I've landed in Jun2009 and I got my PR but I plan to move permanently in Jun2011 so that I have time to accumulate 730 days to retain my PR which I understand very well. However, I recently met people who lived in Canada for 10 years and got the Canadian passport already and told me that I must visit Canada every 6 month to retain my PR and that if I lived 180 days outside Canada in any given year, I'd loose my PR. They talked to me with extreme confidence that in Toronto airport, they wouldn't let me in and would cancel my PR and have to re apply again because I lived outside Canada for 2 years. Is this correct?. Another question is I already established a bank account but how much I can transfer into it? I was also told I couldn't transfer more than CAD10,000 into my account or enter CAD10,000 in cash to Canada before declaring them. Is this correct and if yes, how can I declare the wire transfer? Many thanks.

 

[Leon]

Hi, I've landed in Jun2009 and I got my PR but I plan to move permanently in Jun2011 so that I have time to accumulate 730 days to retain my PR which I understand very well. However, I recently met people who lived in Canada for 10 years and got the Canadian passport already and told me that I must visit Canada every 6 month to retain my PR and that if I lived 180 days outside Canada in any given year, I'd loose my PR. They talked to me with extreme confidence that in Toronto airport, they wouldn't let me in and would cancel my PR and have to re apply again because I lived outside Canada for 2 years. Is this correct?

It is not correct. Those used to be the rules back in 2002 and changed sometime in 2003 so now you can live outside of Canada up to 3 years in every 5. There is no 6 month rule any more. If these people would like to argue that, ask them to go to the CIC website and find for you the link where it says 6 months. They will not be able to because there isn't one.

. Another question is I already established a bank account but how much I can transfer into it? I was also told I couldn't transfer more than CAD10,000 into my account or enter CAD10,000 in cash to Canada before declaring them. Is this correct and if yes, how can I declare the wire transfer? Many thanks.

I am not aware that there is a limit for wire transfers. If you are bringing $10,000 or more in cash into Canada on your person, you need to notify customs, see http://www.cbsa-asfc.gc.ca/publications/pub/bsf5052-eng.html There are also numbers on there to call if you want to ask them about wire transfers.

 

[steaky]

Usually banks will declare the amounts you wired to the Revenue agency. You would have to check the daily wire transfer limits with your bank.

 

[toby]

Usually banks will declare the amounts you wired to the Revenue agency. You would have to check the daily wire transfer limits with your bank.

No that it makes much of a difference to the poster, but I believe that the banks report such transfers to a different organization (I forget the name) -- one dedicated to guarding against money laundering etc. At least this was the situation in 2003. Has the Law changed sine then?

Only if money generates taxable incme does CRA learn about it. So, if your bank account is a savings account, the bank will report interest to CRA. If your account is a chequing account, no CRA reporting because no interest is generated.

Notwithstanding, your main point is correct: there is not a limit on the size of a bank transfer, but the bank may have its own restriction.

In some limited cases, the bank may even want to know the source of the funds (i.e. how the account holder got the money, not just which bank the funds came from).

 

[PMM]

Hi

No that it makes much of a difference to the poster, but I believe that the banks report such transfers to a different organization (I forget the name) -- one dedicated to guarding against money laundering etc. At least this was the situation in 2003. Has the Law changed sine then?

Only if money generates taxable incme does CRA learn about it. So, if your bank account is a savings account, the bank will report interest to CRA. If your account is a chequing account, no CRA reporting because no interest is generated.

Notwithstanding, your main point is correct: there is not a limit on the size of a bank transfer, but the bank may have its own restriction.

In some limited cases, the bank may even want to know the source of the funds (i.e. how the account holder got the money, not just which bank the funds came from).

Wire Transfers over 10K have to be reported to FinTrac

SWIFT electronic funds transfers

This reporting requirement is only applicable to you if you are a financial entity or a money services business and you send or receive EFTs made at the request of a client by transmission of a SWIFT MT 103 message, as a SWIFT member, through the SWIFT network. SWIFT means the Society for Worldwide Interbank Financial Telecommunication. It is a co-operative owned by the international banking community that operates a global data processing system for the transmission of financial messages.

You have to report the following transactions to FINTRAC:

You send an outgoing SWIFT MT 103 message for $10,000 or more outside Canada at the request of a client in the following manner:

in a single transaction; or
in two or more transfers of less than $10,000 (that total $10,000 or more) if your employee or senior officer knows they were made within 24 consecutive hours of each other by or on behalf of the same individual or entity (24-hour rule).

You receive an incoming SWIFT MT 103 message for $10,000 or more sent from outside Canada at the request of a client in the following manner:

in a single transaction; or
in two or more transfers of less than $10,000 (that total $10,000 or more) if your employee or senior officer knows they were made within 24 consecutive hours of each other by or on behalf of the same individual or entity (24-hour rule).