# Bringing USD into Canada (Earned Overseas)



## Janus (Oct 23, 2013)

Hi all,

I have worked overseas and am moving home. I need to figure out how to bring my USD legally into Canada (say $100,000). Does anyone know the tax implications of this?

The money was earned while I was a non-resident so the CRA has never taxed this money before - it was earned overseas during a period when I was off the tax grid due to my residency status.

Thanks,

Janus


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## indexxx (Oct 31, 2011)

To my knowledge, having been through this myself, there should be no problem. You earned this money legally as a non-resident, so you were not required to pay tax on it, correct? What I did was simply had it wired to my bank account. My accountant said it would not be viewed as income in the year I had it wired either, as it was an existing asset not income. It WAS income at one point of course, but during the time I was non-resident and is therefore exempt from taxation.


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## james4beach (Nov 15, 2012)

If you're bringing anything on the order of 100k, I think you should consult with a tax expert on this matter

Congrats on the overseas earnings by the way. But I think you're choosing the wrong season to return to Canada


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## CPA Candidate (Dec 15, 2013)

There is no tax implication. You were not a resident, no tax owing.


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## AltaRed (Jun 8, 2009)

As indexxx suggests, there is no issue with Canadian tax authorities with respect to bringing assets (including earned cash while a non-resident) into Canada. There is no Canadian* tax owing. It just has to be declared, i.e. passively as through a bank wire or EFT (preferred route), or at the border when you enter Canada IF you are carrying it with you in the form of a draft or cashier's check, etc. I have done it a number of times as a returning ex-pat.

* Just be sure there is no exit tax on these funds from your resident country. For example, the USA requires obtaining a Sailing Permit, essentially a partial year tax return to be sure nothing is owed Uncle Same before a person 'flees the country'. Most exiting folks do not know that.


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## OhGreatGuru (May 24, 2009)

There is no tax. But it is reportable to FINTRAC. (for anti-money laundering reasons). You may be required to provide some reasonable explanation for the source of this money either to the receiving financial institution or FINTRAC to release the funds. If you have been working overseas as a non-resident for Canadian purposes, that would be adequate explanation. But I don't know if they would want some documentation such as a work record or tax records. Best to ask either the receiving financial institution; or CBSA. If you are physically bringing it with you in cash or cheque, you must declare it on entry. Failure to declare can result in various financial penalties, even if you have good reasons for possessing the money.


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## oedema (Jan 1, 2012)

Tread carefully, and speak to a tax professional. Just because you worked outside Canada doesn't necessarily mean you were a non-resident. http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html


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## MoreMiles (Apr 20, 2011)

To prove non-residency, you need to give up drivers license, health card, bank accounts, real estate, etc. There was a list of long criteria. It is not enough just to be physically out of Canada.


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## indexxx (Oct 31, 2011)

MoreMiles said:


> To prove non-residency, you need to give up drivers license, health card, bank accounts, real estate, etc. There was a list of long criteria. It is not enough just to be physically out of Canada.


There is nothing preventing one from holding real estate as a non-resident. Plenty of non-citizens hold real estate in Canada, just as I could buy property in many countries and not live there. Health card is correct as it is a subsidized government benefit. Driver's license is not in the criteria- you can hold a valid DL from another country, it has nothing to do with your current residency, but when it expires you must obtain one from your foreign country of residence (said country may require you to get a local license within a specified timeframe after moving there- jurisdictions vary). Bank accounts are also allowed- I kept all my Canadian accounts active while living in the Caymans- I simply explained that I had some outstanding debt in Canada that I needed to pay down while living abroad, and also that I was planning on returning at some future point and did not wish to lose the credit equity I had built up in Canada with that financial institution. So I would regularly wire money home to myself.

As detailed in another thread, what the criteria says is that you must remain out of the country for two years to claim non-residency for tax purposes. You are allowed to return for visits but cannot have Canadian employment income or Canadian provincial health care and cannot access any Canadian assistance programs or other government resources that are deemed to be benefits to Canadian residents. You must prove residency in a foreign country through having local bank accounts, work records or contracts of employment, an address abroad, utility bills, local phone number, local health insurance, etc. Essentially things that show you have a life happening outside Canada. Your border crossings are traceable of course, so there is a paper trail showing how long you spend outside of Canada. It's fairly easy and straightforward to do as if you are legitimately working overseas, you will have these things already.


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## Janus (Oct 23, 2013)

MoreMiles said:


> To prove non-residency, you need to give up drivers license, health card, bank accounts, real estate, etc. There was a list of long criteria. It is not enough just to be physically out of Canada.


I spoke with the CRA directly about this. I had no residential ties to Canada and all my income was earned and taxed by an overseas authority. CRA didn't tax me as a result, it had nothing to do with my driver's license.


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## gt_23 (Jan 18, 2014)

Not sure you have any options other than wiring it to your Canadian bank. That's basically what I did after working in NY for a couple years, although I left most of it in US bank and brokerage accounts. FATCA is only one way at this time thankfully.

I suppose you could load up a suitcase full of cash and bring it with you, which would be kind of badass, but don't think it would add any benefit in your case


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## MoreMiles (Apr 20, 2011)

Janus said:


> I spoke with the CRA directly about this. I had no residential ties to Canada and all my income was earned and taxed by an overseas authority. CRA didn't tax me as a result, it had nothing to do with my driver's license.


Really eh?

They did not need to tax you. You are supposed to report it yourself. 

Have you read the rules? Have you seen the checklist forms? How many of those items have you failed to demonstrate?

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

It's all about 'ties' to Canada. So if you still have Canadian home, drivers license, and dependent family members... you are a Canadian tax resident. 

Most immigrants will make sure they sell and cancel these ties before leaving Canada. 

By the way, local tax office information cannot be considered as legal ruling so it does not matter what they tell you, unless they did so in writing as an official ruling.


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## Janus (Oct 23, 2013)

I haven't been though the list, but an international tax expert at PWC and the CRA person on the phone both said I'm fine. 

I disclosed my move in my tax return (done by the international tax people at PWC) and the CRA accepted me as a non-resident. I paid exit tax on my canadian assets. I'm pretty sure they know what they're doing here.

Looking at the list... I have no belongings in Canada (car/furniture). No apartment or owned property. No memberships to anything. I do have a bank account and a credit card I haven't touched. I've been assured by PWC and CRA that just having a bank account doesn't make me liable to pay Canadian taxes.


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## AltaRed (Jun 8, 2009)

Janus is right. I did exactly the same thing in 2003, with PWC as my tax advisor as well.


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## Janus (Oct 23, 2013)

AltaRed said:


> Janus is right. I did exactly the same thing in 2003, with PWC as my tax advisor as well.


Thank god, I was freaking out a bit for a second there.


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## AltaRed (Jun 8, 2009)

Heck, I even owned a house in Canada while I was away -- but rented out. Utilities were all in the name of the tenant. Many ex-pats do that.


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