# Funds moved to Canada



## bootsie (Aug 30, 2010)

Newbie here, please help.

Are there any tax implications in moving funds from a foreign country to Canada?

If the funds are placed into a bank account the only tax would be annual taxation on any interest, correct?

If funds are gifted is it treated differently. For example if a grand parent gives a grand child 100K ( i wish) the parents would still pay the taxes on the interest?

I am looking for legal strategies to minimize what i pay and would appreciate any insight 
PS - already know about RESPs, TFSA and RRSPs


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## Young&Ambitious (Aug 11, 2010)

Your bank should take care of withholding non-resident tax on your earnings. Yes, there is kiddie tax, although is the grandchild a Canadian resident or non-resident? If non-resident the post-NR tax earnings are yours to spend/gift as you wish.


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## GeniusBoy27 (Jun 11, 2010)

I thought there isn't a gift tax in Canada (unlike the US). However, I would think it would be dependent on the laws at the origin as well.


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## Four Pillars (Apr 5, 2009)

bootsie said:


> Newbie here, please help.
> 
> Are there any tax implications in moving funds from a foreign country to Canada?
> 
> ...


Bootsie - is that the old Bootsie aka Telly?


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## OhGreatGuru (May 24, 2009)

bootsie said:


> Newbie here, please help.
> 
> Are there any tax implications in moving funds from a foreign country to Canada?
> 
> ...


There is no gift tax in Canada. However if money is given to a minor child, there are attribution rules that tax earnings on that money in the hands of the donor. (So rich people can't avoid taxes on their assets by transferring them to minor children.)

Your question about "moving funds from a foreign country to Canada" is a bit vague. If it is a gift from someone else to a Canadian resident, there are no tax implications for the Canadian resident. The recipient may have to provide an explanation to the financial institution as to the source of the funds, because large and/or suspicious money transfers are reported to FINTRAC under legislation delaing with trafficking & money-laundering.

If it is money a Canadian resident owns abroad and is transferring into Canada, there is no tax for transferring it. But CRA may question how the resident came into the money, as Canadian residents are obliged to report world-wide income, and ownership of foreign assets over $100,000. (for example if this money is from the sale of property owned abroad by the CDN resident, it would be subject to CDN Capital Gains tax.)

There are numerous other threads on the subject of gift tax and gifts from abroad.


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## Rox (Oct 17, 2010)

What about if funds are moved, in relatively reasonable amounts (not too big and not too small either), by a Non-Resident into a Trading Account of a discount brokerage, and NOT a bank account ? Purpose is for investments only.

That should not be any problem, right ? And no taxation too, right ? 

Thank you...


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## Karen (Jul 24, 2010)

You didn't indicate what country the money gift would be coming from. I'm not familiar with the situation in any foreign country other than the U.S., but I know that Americans can give gifts of up to $13,000 (U.S.) per person per year, whether the recipient of the gift lives in the U.S. or any other place. Anything over that amount is subject to the U.S. gift tax, payable by the donor, not the recipient.


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## koolk (Jun 17, 2011)

*Sell of Foreign Property*

I am in a similar situation. 

So If I sell my foreign property (<100K) I should be able to bring the money in no problem (never filed the T1135 before) and pay capital gain taxes right?

Does anyone know what kind of proof CRA requires. The problem is all the transactional documents are not in English. 

Thanks.


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