Dear CD's,

I needed few clarifications on money brought to Canada.

I became a PR on Sep 2006 but stayed in Canada for 21 days only and returned back to Dubai, as I was still working there. That time I opened a bank account in Toronto and deposited some money there. I have not filed any tax returns till date as I think that because I do not have any 'residential ties' I am exempt? Is my understanding correct? The address in Bank account is my friend's.

Also, now in August 2007, I intend to be back on permanant basis to Calgary. Now if I bring some funds to Canada, say as DD, will I have to pay taxes on that? Is that not considered as worldwide income and exempt from taxes? And does declaring the funds to customs anything to do with tax exemption (or tax to be paid)? Do I need to file tax return on the money in bank or only on new income that I will be receiving from 'Canadian sources'?

Thanks in advance.

Quote:

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Originally posted by shijyj

Dear CD's,

I needed few clarifications on money brought to Canada.

I became a PR on Sep 2006 but stayed in Canada for 21 days only and returned back to Dubai, as I was still working there.
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Hello shijyj,
Getting your PR card is O.K. It lets you back in. But if you got your Health, SIN card , a Diver's Licence, buying a car for future use, or a Home or a Condo will certianly give rise to residential ties. Who knows, the Canadian Government might conside if had you left and forgot to pick a pair of underwear for drying on a clothesline might constitute to be residential ties!! They are a bunch of cagey Bas...kets. Since what you are not telling us may be all of this or more you will have to decide where you stand in this as regards the 'residential ties'.

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That time I opened a bank account in Toronto and deposited some money there. I have not filed any tax returns till date as I think that because I do not have any 'residential ties' I am exempt? Is my understanding correct? The address in Bank account is my friend's.
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The address in the bank account is your friends, But the SIN and the name is yours. So, there you go..... You got your neck in the noose. Now see how you can untangle yourself.
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Also, now in August 2007, I intend to be back on permanant basis to Calgary. Now if I bring some funds to Canada, say as DD, will I have to pay taxes on that? Is that not considered as worldwide income and exempt from taxes? And does declaring the funds to customs anything to do with tax exemption (or tax to be paid)? Do I need to file tax return on the money in bank or only on new income that I will be receiving from 'Canadian sources'?
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Your funds are yours to enjoy, but the monies you made from Sept 2006 to date you will have to account, unless you have means to throw the same back to the period before sept 2006 and shelter it somehow. In short hide it. But look through the Income tax guide for 2006 and 2007 and see which slab you fall into and what all the exemptions you can claim before you go headlong into this exercise. You might not need to do anything except file a tax return and pay a paltry sum. You do have a few days to solve the same.
It is a good thing you asked. Here is my opinion. there are whizzards on this board who will educate you for a few bucks. Pay and learn.
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Since you know how it hurts you, from this letter, you don't have to respond.

I got your thanks. The Canadian Government also wants theirs and they want to thank you too.

Freddie.