moving back - bringing back money

mrpetersan
New Member



Joined: 26 Apr 2008
Posts: 2

Posted: Sat Apr 26, 2008 3:19 pm

 

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I will be moving back, due to the loss of my job after 9 years in Japan. While here I have saved alot of money , is there any tax complications of bringing money back home?

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 496
Location: Calgary

Posted: Fri May 02, 2008 8:42 pm

 

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If it's just cash in a chequing account, then no, that's simply a transfer of capital and is not subject to tax.
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Steve.

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mrpetersan
New Member



Joined: 26 Apr 2008
Posts: 2

Posted: Sat May 03, 2008 5:24 pm

 

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Thanks Steve: No, its more then a chequing account. It is a brokerage account and a long term hedge fund (2013).

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 496
Location: Calgary

Posted: Sun May 04, 2008 8:14 pm

 

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You'll need to declare any income from it to the CRA from the date that you move back and pay income tax on that income. If you're transferring the capital (or leaving it where it is) then there is no tax.

If the value of the investment is over $100,000, you will need to notify the CRA when you file your tax return on Form T1164.

To avoid dual taxation you will need to do whatever you need to do in Japan to claim non-residency, check with the CRA on foreign tax credits because that's going to be an obscure one if there is a tax credit for it and Japan taxes it in some way even though you are non-resident.

If there is no Japanese tax, then there is no need to claim a tax credit, obviously.
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Steve.

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ken
New Member



Joined: 24 Sep 2007
Posts: 6
Location: Illinois

Posted: Tue May 06, 2008 1:15 pm

 

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Steven is correct. You have to move the money back first. If you move it after you move back to Canada, CRA might consider the funds to be income, and hence taxable. Of course, this presupposes that you are already a non resident for tax purposes.

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 496
Location: Calgary

Posted: Wed May 07, 2008 9:04 pm

 

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I don't think that's a big problem, as long as you have proof that it's not income, like a bank statement or something. The thing that people trip over is that all income from a foreign investment is subject to income tax, and if it's already taxed abroad then you have to claim a foreign tax credit - and the credit may not cover the tax you already paid. In fact it certainly won't if that country has a much lower tax rate.
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Steve.

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