# Should I Declare my foreign Bank Account details (so that I can move money to Canada)



## Tayyab1796 (Sep 26, 2015)

Hi ! I would really appreciate if someone can answer my question 
related to Canadian Tax law? I immigrated to Canada in March 2014.
I was given tax forms to fill out and my tax lawyer advised me to 
not declare my foreign savings in a foreign bank (amounting to 
almost 0.2 million CAD$). I am unable to contact my solicitor now 
and I plan to move my savings to Canada (to support myself and my 
family there) but i am worried that Canadian tax authorities will 
come knocking on my door if they see that suddenly I am 200,000 CAD$ 
better off. Please advice what course of action should I take?


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## Spudd (Oct 11, 2011)

Did you actually file income taxes in Canada yet? Is that the tax forms you're speaking about? If yes, you can file an adjustment to a previous year's taxes to correct your mistake. The form for this is called the T1adj.


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## AltaRed (Jun 8, 2009)

There are two significant issues here, particularly if the OP is now in Canada and has filed a T1 tax return (end of April 2015) for the 2014 tax year:

1) Any income (interest, dividends, et al) earned on the foreign holdings in 2014 should have been declared on the T1 tax return. That can be fixed by a T1ADJ to the 2014 tax return to fix that 'oversight'. There may be some interest owing but not likely any penalties, particularly if the amont is small.

2) The bigger issue would be the apparent failure to file a T1135 to declare ownership of more than $100,000Cad in foreign holdings. There are severe penalties for not filing the T1135 on time (April 30, 2015). See http://www.taxtips.ca/filing/foreign-asset-reporting.htm for a simple explanation. I have NO idea what the tax lawyer was advising at the time but based simply on what the OP has said, that tax lawyer should be disbarred.

Canadian tax authorities do not really care how much money is being brought into the country (there is no tax on money coming in) but they do care if it has not been lawfully declared. The OP would be best to have the money brought into Canada via electronic means. That way, the wire transfer et al will be properly declared by the financial institutions involved. IF the money is brought in by person, in the form of a bank draft et al, the person bringing the money into the country must declare it on the Customs form. Penalties are severe for not declaring funds of $10,000 CAD or more.


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## Guban (Jul 5, 2011)

^ 2) the T1135 doesn't have to completed for the first year for new immigrants. Don't understand why not, but apparently that's the rule.

http://www.advisor.ca/tax/tax-news/alleviate-reporting-headaches-for-offshore-investments-130485


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## AltaRed (Jun 8, 2009)

Guban said:


> ^ 2) the T1135 doesn't have to completed for the first year for new immigrants. Don't understand why not, but apparently that's the rule.
> 
> http://www.advisor.ca/tax/tax-news/alleviate-reporting-headaches-for-offshore-investments-130485


I suppose the logic might be...well, of course, an immigrant would have foreign holdings in the year of immigration, so why ask for the obvious? It's tax evasion CRA is looking for so the 'request' would be out of character for the transition year. Whatever the reason, good news for the OP.


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## OhGreatGuru (May 24, 2009)

The clarification above seems to explain why OP was advised he did not have to report ownership of his foreign account in 2014. 
Also, in the year of entry, Immigrants have to report world-wide income earned after the date of entry. It's possible his "earnings" on his foreign foreign account would be enough that they should have been reported. If so, he may need to file a T1Adjust for them. But if he paid foreign taxes on the earnings, that might be credited. But at current interest rates I don't imagine it would amount to much.

The big thing is that he won't get into trouble with CRA for not filing a T1135, because it is not due until this tax year.


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## Tayyab1796 (Sep 26, 2015)

Thank you Gentlemen for enlightening me about my options. I suppose if I could get a bank draft of CAD$ 200,000 and declare it on the customs form on arrival that would be enough and I won't be chased afterwards by the Canadian Tax authorities.


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## humble_pie (Jun 7, 2009)

Tayyab1796 said:


> I immigrated to Canada in March 2014. I was given tax forms to fill out and my tax lawyer advised me to not declare my foreign savings in a foreign bank (amounting to almost 0.2 million CAD$). I am unable to contact my solicitor now and I plan to move my savings to Canada (to support myself and my family there)



where is the OP really living, though? he says he immigrated to canada in march 2014, but then refers to canada as a country that is over "there," implying that he or family or both have not yet moved to this country.

the "lawyer" is likely to be offshore.


Edit: one notes from message No. 7 that the OP has not yet "arrived" in this country.


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## Tayyab1796 (Sep 26, 2015)

humble_pie said:


> where is the OP really living, though? he says he immigrated to canada in march 2014, but then refers to canada as a country that is over "there," implying that he or family or both have not yet moved to this country.
> 
> the "lawyer" is likely to be offshore.
> 
> ...


My Family is in Canada and I keep visiting them from time to time. At the moment I am currently working in Dubai.


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## humble_pie (Jun 7, 2009)

yes, i thought so

there is probably more to this story than most cmffers realize ...

for starters, sir, you'd need a better lawyer. Next, please don't expect to find proper assistance on an anonymous chat forum ...


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## Tayyab1796 (Sep 26, 2015)

humble_pie said:


> yes, i thought so
> 
> there is probably more to this story than most cmffers realize ...
> 
> for starters, sir, you'd need a better lawyer. Next, please don't expect to find proper assistance on an anonymous chat forum ...


Thanks for your advice. Maybe you are right but I don't know from whom should i take advice because I hav tried discussing with a few lawyers but no one replies back.


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## humble_pie (Jun 7, 2009)

i don't know dubai at all. But there'd be a canadian diplomatic office. If not exactly in dubai, there will be a canadian embassy that serves several countries in the region including canada's interests in dubai.

there, you'd want to ask for the names of solicitors practicing in dubai who are partners in canadian law firms. Preferably, you'd want to look for partners who are canada-based, not locally engaged. Although sometimes locally engaged will do a fabulous job!

from that list, pick 2 or 3 to query. I imagine or i'd hope that you could consult very briefly, initially, for no fee, or perhaps small fee. Assemble your true facts, including the nation whose citizenship you carry. Including how long your wife & other dependents have actually been living in canada. Including all of the offshore assets. Do not fudge on this latter issue. An ethical solicitor will not work to help you conceal assets from canadian authorities.

if it can be shown that the wife & family arrived here in march 2014 - although you did not accompany them for permanent settlement at that time - there should be a relatively small amount of mending to be done. Some wealthy foreign immigrants even enjoy tax freedom for a couple of years after settling in canada, although i don't know if this happy state of affairs can be gained retroactively.

in any event a reputable lawyer with strong ties to canada could guide you well.


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## AltaRed (Jun 8, 2009)

Tayyab1796 said:


> Thank you Gentlemen for enlightening me about my options. I suppose if I could get a bank draft of CAD$ 200,000 and declare it on the customs form on arrival that would be enough and I won't be chased afterwards by the Canadian Tax authorities.


Don't confuse tax issues with potential money laundering issues. The Canadian Revenue Agency (CRA) is only interested in ensuring you pay taxes on income you have earned as a tax resident of Canada and the collection of the T1135 form (in April 2016 for the 2015 tax year). 

The movement of funds between countries has to do with anti-money laundering issues (not tax) and the reason it needs to be declared upon entry to Canada. Using a bank draft and declaring it on the custom forms on arrival is one way to do it. You will be asked where that money came from and based on what you have said, it is money earned prior to immigration to Canada, and/or earned outside the country....or whatever the facts are. The key is to be factual (honest) to avoid suspicions of money laundering. That said, Canadian banks will also ask you the same questions when you go to deposit the funds AND they will have to verify the legitimacy of the bank draft before allowing you access to the funds. Hence the reason it is often better to use a wire transfer and move the funds electronically. It is almost ALWAYS better to move money electronically.

Lastly, there are a number of references to a 'lawyer' in these posts. What you need is the services of a TAX laywer or a senior Chartered Accountant with experience in cross-border issues, not just any lawyer. You may not be getting responses because the lawyers you have contracted are not tax lawyers. Try contacting one of the big accounting firms for advice, e.g. Price Waterhouse, or any big name firm. They have cross-border experts in pretty much all/any of their muiti-national offices.


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## humble_pie (Jun 7, 2009)

altaRed with all due respect, i don't believe you are getting it yet.

it's only partly a tax issue. It's also a significant immigration issue. The partners of canadian law firms who work abroad to serve canadian interests, including attracting valuable new immigrants, have expert knowledge of all the tax issues that will affect immigration applicants insofar as resettling in canada is concerned.

there's also an important hidden immigration story that may be lurking nearby. I'm not prepared to get into it at this time, except to say that the confusion is visible when OP says his dependents are already in canada & he has possibly already filed tax returns as a resident of canada but without declaring offshore employment or offshore assets.

i'll continue to assert that this story is not just about complying with banks or fintrac, that the probability is high that not all of the story has been stated here, that the OP does need an immigration lawyer with expert knowledge of all immigration tax circumstances.


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## AltaRed (Jun 8, 2009)

WADR, I do get it. The OP has already immigrated with his family so the immigration part is behind him. He presumably is now a Permanent Resident.* 

In a recent post, he said he is supporting his family by working offshore in Dubai and commuting back and forth (which is what offshore single status assignments have provisions for and tens of thousands of Canadian tax residents/immigrants have these kinds of assignments). What is not clear is how/if the OP has filed a tax return for 2014 and whether world wide income (both employment and investment income) was declared on it. That is what a tax accountant (not lawyer) is for and why. We should assume the OP's references to tax lawyer may well mean 'lawyer' or 'accountant' and we don't know for sure which. 

BUT it would most likely have been a tax accountant who would have helped the OP fill out the tax forms (again not clear whether the accountant did the actual preparation or simply advised the OP how to do it). Our recommendation here should simply be for the OP, if he has not done so for 2014 tax filings, to secure the services of a cross-border tax accountant to ensure 2014 filings were done correctly, and if not to file a T1ADJ to do so.

We don't know the source of the $200k (could be offshore employment income, or simply financial assets from his prior home, or combination of both) but we know it has not yet been moved to Canada and the only thing we can advise on is how to bring it in legally.

* The OP's family would not have been able to immigrate to Canada and become a Permanent Resident without evidence of sponsorship, assets, or some other means of support. Hence why I believe the OP is a Permanent Resident himself and immigration officials were satisfied with that documentation. It is not for us to question the appropriteness/completeness of the immigration process.


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## humble_pie (Jun 7, 2009)

AltaRed said:


> The OP has already immigrated with his family so the immigration part is behind him. He presumably is now a Permanent Resident.*



again with all due respect, this long post is a bit of a fairytale.

he didn't say he commutes. He specifically said he "visits." Please keep in mind that he had zero connection to this country prior to the sending of his wife, children & other dependents to our shores. There is nothing whatsoever to support the argument that he was previously a canadian resident who accepted a good job overseas but chose to keep his family safely at home in canada. He was, rather, a foreign individual who sent his dependents to canada while remaining a foreign national who resides offshore, maintains the centre of his financial interests offshore, works offshore, pays any taxes owing offshore ...

why would anyone assume that the OP's "savings" are only the stated $200k, when he specifically states that such savings are going to be sufficient to support himself plus his family once he "arrives" in this country?

there's a big immigration scandal story that i wasn't planning to describe, although it appears in the media regularly. A few examples have occurred in cmf forum previously.


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## AltaRed (Jun 8, 2009)

I think the key difference between you and I on this one, is the basis on how he got his family and dependents here in the first place. I am suggesting Immigration would have crossed the t's and dotted the i's on this one. However, unless the OP is willing to clarify this, we will never know.


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## humble_pie (Jun 7, 2009)

no big Red u are quite wrong on this one

neither immigration nor any authority in canada has control over an "immigrant" who crosses the t's & dots the i's on his application, flies to canada to deposit his family, then flies back, or soon flies back, to carry on his business or his job in whichever offshore country has always been the centre of his vital financial interests

there are shady networks of "immigration advisors" in many foreign country capitals, with contacts in canada, who take advantage of would-be immigration candidates & who mis-advise these candidates. The surété du quebec (provincial police) work actively with immigration quebec to bust these rings of crooks.


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## humble_pie (Jun 7, 2009)

it's a major immigration scandal. Looms large in quebec & vancouver, but i'm told is also seen in toronto.

the matrix goes like this: resourceful and/or wealthy foreigners living in war-torn countries "migrate" to canada. Except that they don't really migrate at all, but rather they remain living offshore, settled offshore with their businesses & their incomes & their assets exactly as before.

all that they are doing, in reality, is sending their wives, children & dependent parents to canada, mostly on the canadian taxpayers' tab. For immigration purposes, these artists declare just enough assets & just enough income to qualify, but they never reveal the entire true financial picture.

the scandal is most pronounced here in quebec, which attracts immigrants from french speaking countries, particularly in the middle east. Quebec social & child cashback benefits are among the highest in the world, higher even than scandinavia (a surprising but true fact.)

while life in their own countries may be dangerous & chaotic, in quebec such dependents will find reasonably priced housing, a peaceful society, subsidized ultra low cost daycare, excellent free education, subsidized higher education at world-famous universities, good medical care, advanced medical care at leading hospitals such as the montreal neurological institute, old age benefits including guaranteed income ... plus bigger cashbacks for each kid than those offered by other canadian provinces.

the fathers "visit" their families in canada regularly. In some cases, a father may even appear to be living here but making extended visits to the other country. In both cases, the centre of his financial interests - which is kept hidden from canadian immigration & tax authorities - remains well established in the other country.

there are so many of these cases that immigration quebec & the surété du quebec work together to regularly bust rings of criminal "immigration consultants" who operate falsely in war-torn countries, taking advantage of would-be immigrants by advising them how to carry out the above.

in all cities, these are not bona fide immigrants. They are foreign nationals who are storing their harems in canada at low cost to themselves, in order to benefit from canada's generous social programs. They declare only the minimum in assets to qualify as "immigrants."

the OP's initial reference to the cheating lawyer was a red flag suggesting that he'd fallen into the hands of dodgy "advisors."

on the good side of things, this OP has decided to move himself to canada.

also on the good side of things, if his dependents did indeed settle in march 2014, that is so recent that adjustments can still be made fairly easily. However, in the chance that our poster matches even a few parts of this profile, i do believe that a specialized immigration lawyer would be more helpful than an accountant. Certainly a specialized immigration lawyer will know all about the overseas businessmen who keep their families in canada.


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## AltaRed (Jun 8, 2009)

H_P, thank you for sharing. I never knew this was nearly as rampant as it appears to be. 

I am aware of issues in Vancouver where immigrants own huge houses but declare near poverty on their tax returns. Some of it is the tax haven scheme (scandal?) perpetrated by KPMG recently (and others may play it as well) but that kind of otherwise filthy rich individual would not be posting here.


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## humble_pie (Jun 7, 2009)

AltaRed said:


> ... that kind of otherwise filthy rich individual would not be posting here.



might possibly agree, which is why i thought he might have been led astray by fraudulent "immigration consultants."

i'm glad you see that, to the eyes of the canadian immigration authorities, all was processed & presented with every t crossed & every i dotted. We are not a police state here, the comings & goings of a new immigrant to this country after he has officially landed himself & his family would not be recorded or even noticed.

i wouldn't totally rule out the filthy rich part, though. That $200k could be a larger amount in reality. What might have happened is that he had not found proper advisors with reputable connections, so in their absence he has tended to flounder on his own.

here in quebec, a key part of the abusive immigration practice is the lodging of wives, children & dependent parents in this province because of the high social & financial benefits. Quebec will always favour francophone applicants, thus the large numbers of immigrants from french-speaking areas of the Levant (itself a french word.) To work the scheme perfectly, an immigrant has to keep his official financial profile high enough to satisfy immigration standards but low enough that some benefits will still accrue to his dependents.

we had a wonderful example in cmf forum a couple years before you arrived, altaRed. Depending on when he told the story, he had or had not arrived yet. He was or was not living in dollard-des-ormeaux, which is a suburb of montreal with many recent middle eastern migrants. He was or was not still living in the middle east, where he was or was not operating several businesses.

in quebec, he was going to be a farmer, although there wasn't an operating farm for sale within 200 kilometres of dollard-des-ormeaux.

he had one wife, 6 children & one aged mother in his family. All, evidently, already established in D-D-O. He knew down to the exact penny, how many thousands of $$ he - or rather his wife - was receiving in cash as quebec child tax benefits.

the wonderful part of the story is that almost no cmffers caught on. Hopefully canadians are more alert now, what with the refugee stories & all.

in a way, the prosperous migrant stories do not differ all that much from the desperate refugees now streaming across europe. All are heading for the countries with the best social benefits.


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## Robillard (Apr 11, 2009)

It is difficult to determine whether you are tax resident in Canada or not. If you work have business abroad, you may not be tax resident in Canada even if you have family living in Canada. If you are tax resident in Canada, then I think the income that you generate from the $200,000 would be taxable in Canada and should be reported. You can file with the CRA for a determination of residence, but this might not be necessary. Canada and the UAE have a tax treaty in place, so you can check where the residency tie-breakers put you with respect to tax residency.

Based on what you have stated in the thread, I would think that your centre of economic interests is actually in Dubai. On that basis, you would not be a tax resident of Canada. You should consult the treaty, or get an international tax expert to do this, and to advise on the implications.

With respect to getting money into Canada, wiring it from your foreign bank account to your Canadian bank account is probably the cheapest option that offers the least amount of headaches.


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