Expat Forum For People Moving Overseas And Living Abroad banner

Status
Not open for further replies.
1 - 12 of 12 Posts

·
Registered
Joined
·
15 Posts
Discussion Starter #1
Hello fellow members,

I have initiated the process of my Canada immigration, IELTS done, Spouse IELTS done and now I am awaiting mine and Spouse's ECA to create EE profile.

However, one issue is troubling me... And I am unable to get a satisfactory reply/response from any reliable source.

I would like to know ....HOW and WHEN can I take FUNDS from my foreign bank account (Indian bank in my case) to Canada without having to pay any TAXES on it.

I am an Indian professional, employed in the Middle East for almost 7+ years. Within these years I have accumulated a sizable amount of saving which is generated from my TAX FREE Gulf income.

Part of this saving is in the form of Fixed Deposits and Part of it in Mutual Funds in India. I intend to take all this savings along with me to Canada....and then would like to utilize it for down payment for purchase of new house in Canada... Or something similar use.

I have tried to do a lot of reading on this topic....but didnt suceed ...All I could know is, you are not supposed to pay any Taxes for the Settlement funds that you bring along with you on your First Landing. Once you have landed in Canada, you CAN still transfer/bring in your funds from your foreign banks, as much as you want, but you would have to pay TAX on those funds.

I, don't want to pay any Taxes on this Savings of mine which is generated from my TAX FREE Gulf income.

What are the options available for me????

Will I have to Carry All my money (200k + Cad$) along with me while I land in Canada for the first time????

If yes....How do I carry these funds????

Please throw some light on this out of your valuable Experiences.

Thanks in Advance.

Cheers

DPS
 

·
Registered
Joined
·
4,458 Posts
1). Canada does not tax settlement funds.

2). You will need proof in the way of bank statements, certificates of deposit etc. you should not bring such a large amount with you in cash. You can transfer it bank to bank.
 

·
Registered
Joined
·
2,388 Posts
Disclosure of funds

Tell a Canadian official when you arrive in Canada if you are carrying more than CDN $10,000. If you do not tell an official, you may be fined or put in prison. These funds could be in the form of:

cash
securities in bearer form (for example, stocks, bonds, debentures, treasury bills)
negotiable instruments in bearer form (for example, bankers’ drafts, cheques, travellers’ cheques or money orders)
Important things to do before and after you arrive in Canada

And
bsf5052: Crossing the border with $10,000 or more?

We had filled out the form, and showed it to Customs when we arrived in Canada.
 

·
Registered
Joined
·
15 Posts
Discussion Starter #4
1). Canada does not tax settlement funds.

2). You will need proof in the way of bank statements, certificates of deposit etc. you should not bring such a large amount with you in cash. You can transfer it bank to bank.
Thanks Auld Yin for your Blazing fast reply:)

As mentioned by you, I do understand that I would need to substantiate it with necessary Proofs that the Funds are mine and their origin etc.

But the BIG question still remains is...WHEN shall I take those funds to Canada???

You did mention that I can Transfer it bank to bank....but unfortunately until I land in Canada and get my documents (PR card, SIN card) I wont be able to open a Bank account with a Canada bank. Lets say that after 20 days of my landing, I am able to open an Account with any bank in Canada.

Will i be still allowed to bring my funds to this Account without any TAXES on it. (In other words...would it still qualify as SETTELMENT FUNDS...although I didnt carry it along with me while my First-Landing???)

Is there a time-frame within which I am required to get my funds....???

Is it possible for you to share some Link/Resources which i can do some study on....???

Thanks for your wonderful help....anywhich ways.

cheers,

DPS
 

·
Registered
Joined
·
2,388 Posts
We didn't bring all our money at once when we landed, transferred most of it after a month. But we knew the amount of money we were going to transfer, and so we filled that out on the paper,
 

·
Registered
Joined
·
4,458 Posts
Thanks Auld Yin for your Blazing fast reply:)

As mentioned by you, I do understand that I would need to substantiate it with necessary Proofs that the Funds are mine and their origin etc.
because the Canadian Gov't needs to be assured that the funds are yours and you haven't borrowed them for purpose of admittance to Canada. Many people have tried/done this

But the BIG question still remains is...WHEN shall I take those funds to Canada???
you should, of course, bring some funds based on what your living arrangements will be when you arrive

You did mention that I can Transfer it bank to bank....but unfortunately until I land in Canada and get my documents (PR card, SIN card) I wont be able to open a Bank account with a Canada bank. Lets say that after 20 days of my landing, I am able to open an Account with any bank in Canada. Yes

Will i be still allowed to bring my funds to this Account without any TAXES on it. (In other words...would it still qualify as SETTELMENT FUNDS...although I didnt carry it along with me while my First-Landing???)
as previously said Canada does not tax legitimate funds entering the country. There are multi-millionaires immigrating to Canada on a regular basis. They do not bring their funds with them on a flight.

Is there a time-frame within which I am required to get my funds....???
No

Is it possible for you to share some Link/Resources which i can do some study on....???
study what?

Thanks for your wonderful help....anywhich ways.

cheers,

DPS
Good Luck
 

·
Registered
Joined
·
15 Posts
Discussion Starter #7
We didn't bring all our money at once when we landed, transferred most of it after a month. But we knew the amount of money we were going to transfer, and so we filled that out on the paper,
Thanks a lot for sharing your FIRST HAND EXPERIENCE. This is what makes this FORUM and amazing resource.

But tell me one thing, Did you fill form E677...???
Link: http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/e677.pdf

I am a bit confused here...because the CBSA webpage says that if you are CARRYING more than 10K then you have to declare using E677 form. Where as in your case (and that is similar to what I plan to do) you didnt carry so much amount with you while you landed for the first time.

You got it bank-transffered after about a month...right???

Did you still mention the amount, you wanted to transfer after a month, on the FORM E677????

Thanks in advance.

cheers,

DPS
 

·
Registered
Joined
·
15 Posts
Discussion Starter #8
Good Luck
Thanks Auld Yin, for your point wise response.... It did clear a lot of my confusion.

You did ask me.... STUDY WHAT?????
The only thing that I was trying to ask for is.... A link to any government website/page where it is mentioned that " Even after your First-Landing, you can still bring-in your money later-on to CANADA (Probably a month or even a year later) and it would still get qualified as SETTELMENT-FUNDS and woulnd not be TAXED by Canada-government."

Obviously, It may not be exactly as I have written ...but the essence should be the same.

Although I do respect the rich-knowledge and vast-experience that you all guys on the Forum have...and the enormous help that you are offering to us....however when it comes to taking such decisions related to finances...its always better that such advices are backed up with some-backup documents from Government-webpages or similar authorities which can come to my rescue incase things dont go as planned at the Airport.

I can always show a copy of that webpage/link to the officer at the airport if he/she doesnt agree.

I hope you I am able to make myself clear....

Please let me know if you are aware about whether it is mentioned anywhere in the official-Government website

Thanks a lot for your support and bearing with me.:)
cheers,

DPS
 

·
Registered
Joined
·
4,458 Posts
There is no such Government issued diktat of which I'm aware. You should pose your question to the Canadian Revenue Agency.
 

·
Registered
Joined
·
2,388 Posts
I don't remember exactly as it's already 5 years ago, maybe the form even looked a bit different at that time?
We did have a banker's cheque with us (>$10,000). And I think we wrote in that other part that there was x amount on our Belgian bank account + expected x amount extra after our house was sold and that we would transfer it to Canada before the end of the year.
(we had sold our house before we left, but in Belgium it takes about 3 months before the whole process is over and done and you have the money on your account)

I remember asking our Canadian bank if we had to fill out this form again when we transferred big amount on a later date (I had done this, but the bank wasn't really that interested in it). They said that the most important part was that, if they ever checked, that I could prove that it was our money. Which was easy because of the weekly prints of the bank that showed the deposit of our wages + the documents from the notary and bank regarding selling the house + other investment products that we have paperwork for). So far, nobody ever asked for this.
 

·
Registered
Joined
·
15 Posts
Discussion Starter #11
I don't remember exactly as it's already 5 years ago, maybe the form even looked a bit different at that time?
We did have a banker's cheque with us (>$10,000). And I think we wrote in that other part that there was x amount on our Belgian bank account + expected x amount extra after our house was sold and that we would transfer it to Canada before the end of the year.
(we had sold our house before we left, but in Belgium it takes about 3 months before the whole process is over and done and you have the money on your account)

I remember asking our Canadian bank if we had to fill out this form again when we transferred big amount on a later date (I had done this, but the bank wasn't really that interested in it). They said that the most important part was that, if they ever checked, that I could prove that it was our money. Which was easy because of the weekly prints of the bank that showed the deposit of our wages + the documents from the notary and bank regarding selling the house + other investment products that we have paperwork for). So far, nobody ever asked for this.
Hey EVHB, Thanks a lot for your wonderful support and descriptive explanation.
As I understand from your experience is that I should be carrying only Immediately required funds (Settlement funds - 18,000 $ in my case) This will allow me to settle and sustain for few initial months, while I get organised with my PR Card, SIN Card, Bank Account, JOB and accommodation...etc.

Once I feel comfortable and confident that I have finished the basic necessary activities of Migration & settlement, I can bank-transfer Funds (from my Indian Bank Account) to my newly opened Canadian-bank account.

The ONLY Important thing that I have to do is...at the time of First-Landing, I have to declare it on the FORM that I would be bringing X amount of money from my Indian-Bank account later on. And they dont levy any TAX on your money...right???

This looks okay. All I have to do now is to confirm which Form did you fill. ???
Do let me know if you are able to trace or remember the FORM that you had filled .

Thanks a lot dear.
Cheers,

DPS
 

·
Registered
Joined
·
2,388 Posts
I think that, in theory, you only have to declare the amount you are carrying with you, in case that that is >$10,000.
You fill out this form:
E677 – Cross-Border Currency or Monetary Instruments Report — Individual and hadn it to Customs at the airport (where you also show your ‘goods to follow’ list).
You don’t pay any taxes on it.

Later, if you are transferring money >$10,000 to your Canadian bank account, you can ask the bank if you need to report something or not.

If you have more questions:
To obtain additional information or a copy of the required forms, visit our Web site or the FINTRAC Web site. You can also call us free of charge throughout Canada at 1-800-461-9999. If you are calling from outside of Canada, you can contact us at 204-983-3500 or 506-636-5064.
bsf5052: Crossing the border with $10,000 or more?

Don't underestimate the amount of money you need! Rent (since you don't have credit history/score, some will ask for a couple of months of deposit), car, expensive car insurance (when coming to BC or ON), deposits for phone plan, etc. With $10,000, you won't survive for long.
 
1 - 12 of 12 Posts
Status
Not open for further replies.
Top