Taxes for savings brought to canada after first landing

[abcvita2012]

Hello everyone,

So I'll be landing next week in Toronto and I'm not planning to transfer my savings now since I'm not permanently moving anytime soon.

Now the question is,
If I transfer my savings to a Canadian bank account before my permanent move or at the start of it would it be taxed? and if so how to avoid it?

 

[pie_vancouver]

No

 

[PMM]

Hi

No

1. Actually the interest earned on it in Canada, would be subject to tax.

 

[pie_vancouver]

The op asked if the transfer is taxable, of course not. I know how to read. And you don't have to tell me that interest income is taxable, I am an Accountant.

 

[PMM]

Hi

The op asked if the transfer is taxable, of course not. I know how to read. And you don't have to tell me that interest income is taxable, I am an Accountant.

Re-read his/her post didn't asked only about the transfer.

 

[pie_vancouver]

So you assume that all will be put in Savings acct and not put in Chequing or TFSA, if the total interest on the money is over $50 at Dec 31st, he/she will get a T5. Not all people get T5 because of zero or low interest rate on bank deposits here.

 

[NetMecca]

You are not required to pay taxes on saving transferred, only on earnings, so interest on after transfer may be taxable. You can put savings into a TFSA (limited) that will make it possible to avoid taxes even on interest. I have set up a stock exchange trading account as my TFSA so I can trade on stock exchanges in US and Canada. Profits there are not taxable. Be sure to check the TFSA deposit limits. If you over deposit that taxes will come into play as well.

 

[PMM]

Hi

You are not required to pay taxes on saving transferred, only on earnings, so interest on after transfer may be taxable. You can put savings into a TFSA (limited) that will make it possible to avoid taxes even on interest. I have set up a stock exchange trading account as my TFSA so I can trade on stock exchanges in US and Canada. Profits there are not taxable. Be sure to check the TFSA deposit limits. If you over deposit that taxes will come into play as well.

1. You have to be very careful trading stocks in a TFSA. CRA may decide based on the frequency of the trades, and volumes that it has become a business

"
The CRA said that “millions of additional taxes have been recovered as a result of audits of TFSAs,” and referred to a recently-released Income Tax Folio which indicates that “the determination as to whether a particular taxpayer carries on a particular business is a question of fact that can only be determined following a review of the taxpayer’s particular circumstances.”

The CRA then quoted its Interpretation Bulletin entitled “Transactions in Securities,” which sets out factors developed by the courts that are relevant in determining whether transactions in securities constitute carrying on a business. It concludes that “as there is nothing unique about TFSAs in the context of securities trading, there is no plan to provide any additional guidance specific to TFSAs.”

http://tinyurl.com/ya8czxb4

 

[abcvita2012]

Thanks everyone for your responses.

So another question:

I heard that income generated overseas while you have ties in canada is taxable right? How do you convince taxing authorities that whatever you are bringing from overseas is savings and not income?

 

[steaky]

Thanks everyone for your responses.

So another question:

I heard that income generated overseas while you have ties in canada is taxable right? How do you convince taxing authorities that whatever you are bringing from overseas is savings and not income?

I guess if you are audited by them, the auditors will tell you what you need to show to convince them that they are savings and not income.