Protecting my money from Trump

[deadbird]

I am currently working in the US and will be doing a short PR landing after which I will return to the US for a year or so before settling in Canada permanently.

I am concerned that Trump may to try to apply an exit tax for remittances from the US to other countries. I know that is probably not a likely scenario however, it will help me sleep better at night if I move most of my money to Canada. On the other hand, I don't want to be considered a Canadian tax resident while I'm working in the US.

If I open a Canadian bank account and transfer a non-trivial amount of funds ( >$100K ); will I be considered a Canadian tax resident?
According to this page, I would have "secondary residential ties" if I opened a Canadian bank account. Is that sufficient to be considered a resident - http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

Also, what would be the situation if instead of just keeping the money in a savings account, I invested the money in a Canadian brokerage account. I assume that would generate dividend income and would need filing of Canadian taxes. Would that mean that I would be a Canadian tax resident by default.

 

[wyho007]

Banks in Canada offers non-resident account but you need to confirm if it fits your "short landing"setup.

I opened a non-resident account in Canada last year, sending money in there earning interest income. A lot of non resident make investments (thought limitations in the kind of investments you can make) in Canada with bank accounts opened.

 

[deadbird]

Banks in Canada offers non-resident account but you need to confirm if it fits your "short landing"setup.

I opened a non-resident account in Canada last year, sending money in there earning interest income. A lot of non resident make investments (thought limitations in the kind of investments you can make) in Canada with bank accounts opened.

Thanks. Do you mind sharing which bank you had an non-resident account with?

Also, can you clarify why a short landing setup would be a problem? If it helps, I don't plan on opening a bank account immediately on landing. I can always wait for a few months after landing, drive down to Canada from the US afterwards.

 

[APPNOV2014NY]

Banks in Canada offers non-resident account but you need to confirm if it fits your "short landing"setup.

I opened a non-resident account in Canada last year, sending money in there earning interest income. A lot of non resident make investments (thought limitations in the kind of investments you can make) in Canada with bank accounts opened.

Sorry to hijack this thread. How much interest ( percentage wise) do these non-resident accounts offer? Do we need to have SIN to open such accounts?

 

[wyho007]

Thanks. Do you mind sharing which bank you had an non-resident account with?

Also, can you clarify why a short landing setup would be a problem? If it helps, I don't plan on opening a bank account immediately on landing. I can always wait for a few months after landing, drive down to Canada from the US afterwards.

I had mine at HSBC. If you qualify for Premier account status in the US (in Canada, it's total assets of C$100k), you can even go into a US branch and ask them to open a Canadian non-resident account for you so you can save a trip.

What I'm not sure if "short landing" has a problem as, say in my case, I opened the bank account and being a real non-resident, my account is marked "non-resident" and so the bank won't issue me any tax slip as a resident at year end. It's pretty clear cut. In your case, I'm not sure if the bank will tag you as a resident or non-resident since you already landed in immigration sense. Is your COPR expiring that you want to do a short landing? Otherwise, you may consider landing close to COPR expiration to minimize any possible tax issues.

 

[wyho007]

Sorry to hijack this thread. How much interest ( percentage wise) do these non-resident accounts offer? Do we need to have SIN to open such accounts?

No SIN is required. You earn the same as a resident earns. Non residents are limited to just a a few options (high interest savings account, GIC, etc) only.

 

[steaky]

Seriously, Trump is a billionaire. Why would he care about your money?

 

[spyfy]

Seriously, if you have $100+K in assets and you are wondering about international taxation, you shouldn't go to an online forum full of people who think they know and understand the matter.

This is what tax consultants are for. And if you have assets on that level, you should really ask these consultants. International taxation is complicated, even more so when the US is involved.

(Good) Tax consultants usually cost something in the hundreds per hour. That is nothing compared to the taxes their advice will save you with investments over $100K.

 

[thestunner316]

Seriously, if you have $100+K in assets and you are wondering about international taxation, you shouldn't go to an online forum full of people who think they know and understand the matter.

This is what tax consultants are for. And if you have assets on that level, you should really ask these consultants. International taxation is complicated, even more so when the US is involved.

(Good) Tax consultants usually cost something in the hundreds per hour. That is nothing compared to the taxes their advice will save you with investments over $100K.

plus one mate... nice reply.

 

[deadbird]

Seriously, if you have $100+K in assets and you are wondering about international taxation, you shouldn't go to an online forum full of people who think they know and understand the matter.

This is what tax consultants are for. And if you have assets on that level, you should really ask these consultants. International taxation is complicated, even more so when the US is involved.

(Good) Tax consultants usually cost something in the hundreds per hour. That is nothing compared to the taxes their advice will save you with investments over $100K.

Fair point. However, I'd rather have multiple points of view, do my research and decide for myself rather than treat the word of the tax consultant as gospel.

Last time I spoke with a "good" immigration lawyer, they assessed my EE application for 25 less CRS points than what I deserved.

 

[deadbird]

Seriously, Trump is a billionaire. Why would he care about your money?

To build his wall - https://www.washingtonpost.com/politics/trump-would-seek-to-block-money-transfers-to-force-mexico-to-fund-border-wall/2016/04/05/c0196314-fa7c-11e5-80e4-c381214de1a3_story.html

 

[xpressentry]

I like your subject. You need to protect other things from Trump too ... like your sanity, dignity and future in USA.

 

[wyho007]

Fair point. However, I'd rather have multiple points of view, do my research and decide for myself rather than treat the word of the tax consultant as gospel.

Last time I spoke with a "good" immigration lawyer, they assessed my EE application for 25 less CRS points than what I deserved.

I second that. Good to do research before you consult a professional, so at least you know what exactly to ask. I know a lot of professionals who are not really that knowledgeable as they claim.

 

[deadbird]

I had mine at HSBC. If you qualify for Premier account status in the US (in Canada, it's total assets of C$100k), you can even go into a US branch and ask them to open a Canadian non-resident account for you so you can save a trip.

What I'm not sure if "short landing" has a problem as, say in my case, I opened the bank account and being a real non-resident, my account is marked "non-resident" and so the bank won't issue me any tax slip as a resident at year end. It's pretty clear cut. In your case, I'm not sure if the bank will tag you as a resident or non-resident since you already landed in immigration sense. Is your COPR expiring that you want to do a short landing? Otherwise, you may consider landing close to COPR expiration to minimize any possible tax issues.

Yup, my COPR will be expiring soon. So will have to land in a few months.

 

[747-captain]

Seriously, Trump is a billionaire. Why would he care about your money?

Actually as deadbird pointed out, Trump did say (both on the campaign trail, as well as quite recently after assuming office) that he would tax remittances sent back home by undocumented immigrants.

However, one needs to understand that there are several nuances to this point. First off, there is no way on earth he could just "levy" a tax on everyone trying to send money out of the country (especially if that money was earned by someone that is lawfully present in the U.S.). Second, even if something like that were to be instituted, I'm not sure he could just unilaterally issue an Executive Order (like he tried to do with the Muslim travel ban). He would likely need to go through congress, and I would imagine that there are at least a few sensible Republicans who would not go along with an insane idea like that. Third, if something like this did ever come to fruition, there would be lawsuits flying around left and right, before this thing had the slightest chance of seeing the light of day! Trump learned that quite quickly that he is not King of the United States of America after that Muslim ban edict of his : Fourth, Trump has been all over the place with this issue. First he said that, then he said he would levy a 20% tax on all imports coming from Mexico to pay for the "wall" : (which was, of course, quickly shot down by members of his own party).

Also keep in mind that this "threat" by Trump was in regards to securing payment from Mexico : for constructing that infamous "Border Wall". So it was specifically directed towards Mexico and Mexicans. There is a ZERO chance of this happening to people sending money to Canada.