# Sending money back to Canada



## Mclovin oo7 (Sep 25, 2012)

I travel back to Canada almost every month and I am being asked always if I am brining any money with me. I don't carry large cash with me.

I have a problem though, I am being paid in Canada and I am still on Canadian pay roll, still paying taxes in Canada.

I am able to save some money here. My question is what do I tell CRA if they ask me about the extra money, I intend to send from Dubai to Canada? How to I send it back home?

I guess most of the Canadians here have taken a better decision by declaring non residency in Canada but since I am here for two three year only, I did not bother to do that.

My account told me to just save up and use a relative to gift the money to me later.

Any help would be highly appreciated.


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## w_man (Apr 16, 2010)

Not sure what you mean. So you are here for 2 to 3 years and you are not declaring non-residency?

I would speak to an accountant who knows how non-residency laws work. I initially came out for a 3 year contract and most certainly declared non-residency. It's not complicated. I didn't request CRA to approve my non-residency ... My accountant simply declared it when I filed my taxes and declared my rental property in my taxes.

I send money back home regularly - sometimes large amounts and sometimes just enough to manage any bills I have back home eg: mortgage payment etc. I use GCEN to send money ... I have done some research and checked rates/fees and find GCEN is pretty good - specially when you are sending large (10k +) amounts. You can do everything online once you setup an account. You purchase CAD and then send the AED value to GCEN via online banking money transfer (that's how I send it anyways). They forward the CAD equivalent to the bank account in Canada (I have provided my banking details to them). Takes about 2-3 business days.

When/If I move back to Canada, I'll be sending money through a similar process rather than carrying that much cash on me. Even if you do, you simply declare it at customs. It could raise a flag with CRA and they could audit you but that's where you need to make sure you follow all the rules of being a non-resident.

Unless there's a real reason where I can't meet non-residency requirements eg: family doesn't move with me, I don't know why anyone would want to pay taxes in Canada


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## Mclovin oo7 (Sep 25, 2012)

w_man said:


> Not sure what you mean. So you are here for 2 to 3 years and you are not declaring non-residency?
> 
> I would speak to an accountant who knows how non-residency laws work. I initially came out for a 3 year contract and most certainly declared non-residency. It's not complicated. I didn't request CRA to approve my non-residency ... My accountant simply declared it when I filed my taxes and declared my rental property in my taxes.
> 
> ...


Thank you,

I talked to my account when I filed my taxes for 2013 and he said that it is easy to declare non residency. But I did not discuss it in details with him. Another reason is that I am still paid in Canada though NOW I can get paid in Dubai if I wanted to.

I still have a house, a car, RRSP, TFSA, Credit cards, Medical Insurance etc in Canada. 

Guess my best option would be to declare non residency. What happens to the house, car and other stuff in that scenario?


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## XDoodlebugger (Jan 24, 2012)

Mclovin oo7 said:


> Thank you,
> 
> I talked to my account when I filed my taxes for 2013 and he said that it is easy to declare non residency. But I did not discuss it in details with him. Another reason is that I am still paid in Canada though NOW I can get paid in Dubai if I wanted to.
> 
> ...


With Canada's tax rates you would be a fool to not declare UAE residency. Not sure about Canada but in the US nothing happens to my US stuff, I think it is the same for Canada.


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## Mclovin oo7 (Sep 25, 2012)

XDoodle****** said:


> With Canada's tax rates you would be a fool to not declare UAE residency. Not sure about Canada but in the US nothing happens to my US stuff, I think it is the same for Canada.


I know but you missed one major thing, I am still getting paid in Canada.

Also, I am kind of afraid as one of my close friends had to pay back 77K in taxes and interest after returning back from Europe.


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## XDoodlebugger (Jan 24, 2012)

Mclovin oo7 said:


> I know but you missed one major thing, I am still getting paid in Canada.
> 
> Also, I am kind of afraid as one of my close friends had to pay back 77K in taxes and interest after returning back from Europe.


I was paid into my US account by my US company for 10 years as an expat. There are criteria to be met, but in 3 years you would most certainly qualify.


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## RandomDude (Mar 7, 2014)

Monthly going to Canada?
You must be hating flying by now.

Are you working with a Canadian company? If you have a UAE contract/visa, you can declare non residency. I worked offshore with Canadians working for 6 months contract, and they were transferring money back to Canada and not paying taxes. Yeah check with a Canadian tax lawyer or something.


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## Kurdish (Aug 9, 2013)

Just some general knowledge I have about Canadian non-residency:

For sure you would need to get rid of your Canadian health care, can not have dependents in Canada. If you own a property, you should rent it out (with a paper trail). If you have a car, you should sell it. You are not supposed to leave any of your possessions in Canada. (Just don't pay for a storage unit under your name). It is best to cancel any post-paid cell phone account you may have back home.

My accountant told me that I can keep my drivers license, passport, a bank account and even a credit card in Canada, but the general idea is that the better of a paper trail you have to support that you are leaving Canada and "don't plan to come back", the better. Then when you decide to go back, there is a process, but you would not get dinged for paying the tax for your income earned abroad.

Of course some accountants may tell you something a little different as to how much you can really keep regarding the bank account, credit card, drivers license.

If you can really uproot, (no home in Canada, health care, dependents, car) then you should probably go for non-residency but speak to an accountant to make sure that you haven't missed anything.


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## Mclovin oo7 (Sep 25, 2012)

RandomDude said:


> Monthly going to Canada?
> You must be hating flying by now.
> 
> Are you working with a Canadian company? If you have a UAE contract/visa, you can declare non residency. I worked offshore with Canadians working for 6 months contract, and they were transferring money back to Canada and not paying taxes. Yeah check with a Canadian tax lawyer or something.


I am working for a Canadian company. I handle EMEA for them and once we set up office and recruit people to run it, I will be back in Canada. That is why, my stay in Dubai is for short terms only, two or max three years. I do have free zone visa though.


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## Mclovin oo7 (Sep 25, 2012)

Kurdish said:


> Just some general knowledge I have about Canadian non-residency:
> 
> For sure you would need to get rid of your Canadian health care, can not have dependents in Canada. If you own a property, you should rent it out (with a paper trail). If you have a car, you should sell it. You are not supposed to leave any of your possessions in Canada. (Just don't pay for a storage unit under your name). It is best to cancel any post-paid cell phone account you may have back home.
> 
> ...


It seems that's what I need to do - contact my account to find out more.

Thanks


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## w_man (Apr 16, 2010)

I think Kurdish got most of the points.

I work for a Canadian company as well and am running their office here in Dubai. As far as I know, you can still declare non-residency if getting paid in Canada - as long as you're not IN Canada for work and have residency in another country - might want to check that though.

It might not matter though as you said you can get paid in UAE now. My company got me in touch with PwC in Canada to discuss expat tax. They gave me some basic advice on how to 'cut ties' with Canada when declaring non-residency but Kurdish got the gist of it.

2-3 years of taxes is quite a bit. It isn't very difficult. Just get a property management company to rent out your property. Sell the car (to a friend if you want it back later) but make sure the paper trail is there. Cancel your health care and minimize your bank accounts/credit cards etc.

If you do things right, you shouldn't get charged any taxes when you return. Absolutely get in touch with a tax expert who has experience with expats - not every accountant knows this stuff.

Good luck!


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## Mclovin oo7 (Sep 25, 2012)

w_man said:


> I think Kurdish got most of the points.
> 
> I work for a Canadian company as well and am running their office here in Dubai. As far as I know, you can still declare non-residency if getting paid in Canada - as long as you're not IN Canada for work and have residency in another country - might want to check that though.
> 
> ...


Thank you,

House and Car will not be an issue as I have relative who can take care of them. I can cancel the health card and the insurance coverage. Are you sure I can still keep credit card and use it? What about bank accounts, TFSA and RRSP?


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## w_man (Apr 16, 2010)

Mclovin oo7 said:


> Thank you,
> 
> House and Car will not be an issue as I have relative who can take care of them. I can cancel the health card and the insurance coverage. Are you sure I can still keep credit card and use it? What about bank accounts, TFSA and RRSP?


You don't want to leave the house and car with relatives. The house, must be rented at an 'arms length' meaning you can't have your relatives manage it for you. I guess, you COULD but it's certainly not recommended. I could have had my dad manage my property as well but I was recommended to hire a property management company instead. You also should never rent it to relatives either. Also, a good property management company who understand non-residency, will also submit your NR4/NR6 documents for you.

CRA isn't very black and white with their rules. It's ideal that you get rid of EVERYTHING. I was told that since I have a mortgage, I can maintain a bank account to handle any expenses I have to maintain my 'investment property'. CRA doesn't want to promote you pulling out of your investments in Canada so anything associated with investments is allowed - you just have to pay 25% tax on any income/profits you make as non-resident.

I am not certain about TFSA/RRSP - i THINK you can keep your accounts but can't contribute to them - you want to check this with an experienced accountant.

Same goes for a CC and drivers license. You want to get rid of them to have a stronger case BUT I was also told I could keep one CC - just not use unless absolutely necessary. This allows you to maintain a credit rating in Canada but that's not the reason you will give to CRA if they ever ask. Drivers license, I was told to keep but NOT renew while I'm still non-resident. 

Again - spending a few bucks to talk to an experienced accountant on the matter is highly recommended. I wouldn't make any decisions until you have looked at all the pros and cons.


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## Mclovin oo7 (Sep 25, 2012)

w_man said:


> You don't want to leave the house and car with relatives. The house, must be rented at an 'arms length' meaning you can't have your relatives manage it for you. I guess, you COULD but it's certainly not recommended. I could have had my dad manage my property as well but I was recommended to hire a property management company instead. You also should never rent it to relatives either. Also, a good property management company who understand non-residency, will also submit your NR4/NR6 documents for you.
> 
> CRA isn't very black and white with their rules. It's ideal that you get rid of EVERYTHING. I was told that since I have a mortgage, I can maintain a bank account to handle any expenses I have to maintain my 'investment property'. CRA doesn't want to promote you pulling out of your investments in Canada so anything associated with investments is allowed - you just have to pay 25% tax on any income/profits you make as non-resident.
> 
> ...


Thank you for the advice.

I have already dropped an email to my accountant and will see another one also when I am back in TO, to have a second onion.

Good point regarding credit history by keeping the oldest credit card. I have no intention of contributing in RRSP during my stay in Dubai.

My license is expiring next year but I guess, I can drive on International license in Canada. I need to drive in Canada as I am there several times a year.

You didn't say anything about the OHIP card and medical insurance in Canada. I guess that was missed...

Thank you again.


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## w_man (Apr 16, 2010)

Try to see if you can get your license renewed before you officially declare non-residency. I actually lost my license just before moving and they let me renew it - there's a time limit though eg: if the license is to expire within a few months, they renew rather than re-issue. You might get lucky and get it renewed. And yes, you CAN get an international drivers license. As a matter of fact, I always drive on an IDL when visiting Canada. Again, don't want CRA to claim I was using a Canadian license if I ever get pulled over. Plus, if I DO get pulled over, I don't get demerit points 

OHIP - a couple of things here as well. Ideally you should call it in and cancel it but I was told to just not use it. I didn't go through the process of cancelling (which I should have) but I simply never use AHC when I'm visiting home. 

All these and more will be covered by your accountant. Just figure out when you will qualify eg: 2014 or 2015 and then follow the steps to cut your ties. 

Welcome to the tax-free world


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## Mclovin oo7 (Sep 25, 2012)

w_man said:


> Try to see if you can get your license renewed before you officially declare non-residency. I actually lost my license just before moving and they let me renew it - there's a time limit though eg: if the license is to expire within a few months, they renew rather than re-issue. You might get lucky and get it renewed. And yes, you CAN get an international drivers license. As a matter of fact, I always drive on an IDL when visiting Canada. Again, don't want CRA to claim I was using a Canadian license if I ever get pulled over. Plus, if I DO get pulled over, I don't get demerit points
> 
> OHIP - a couple of things here as well. Ideally you should call it in and cancel it but I was told to just not use it. I didn't go through the process of cancelling (which I should have) but I simply never use AHC when I'm visiting home.
> 
> ...


Thank you w_man, much appreciated.

My account is really good, he already replied back to me with few questions. I just got the key for the free zone office so technically, I can start getting paid locally whenever I want. I will wait for the account to clear everything first though.

Boss at the home is no mood to cancel the OHIP as she wants to keep it for the emergency. 

Lets see what accountant comes back with. 

We will see how it goes.


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## w_man (Apr 16, 2010)

Mclovin oo7 said:


> Thank you w_man, much appreciated.
> 
> My account is really good, he already replied back to me with few questions. I just got the key for the free zone office so technically, I can start getting paid locally whenever I want. I will wait for the account to clear everything first though.
> 
> ...


Is your wife in Canada or here? Does your company not provide you with Health Insurance? Mine provides BUPA worldwide insurance so I'm covered when I go to Canada. You can also purchase travel insurance when you visit Canada - I know you visit quite frequently so you might want to figure out what that will cost.

I don't think you have an option to keep your OHIP as a non-resident. You won't be paying taxes so can't use the free healthcare. On the other hand, Canadian taxes aren't cheap - getting worldwide health plan here would be the ideal situation. I would recommend BUPA's Worldwide plans. Have had them for 3 years now and their coverage is amazing. A bit on a pricey side though ... your employer might pay for it?

Anyways, good luck and let me know if you have any other questions.

Cheers.


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## Canuck_Sens (Nov 16, 2010)

Hi,

W_man covered I think everything. I was in the same situation first year and got all sorted _legally._

However, and this is very important, if you are married (or in a long term relationship) and have children in Canada, you cannot legally dodge taxes. Surely you could not declare but then it is up to you. Also if you want to get paid here through your Canadian company your payroll must be run here. Your salary should be flowing through the UAEWPS wage payment system (depending where you are in the UAE). This is the law according to MOL.

And guess CRA may audit you. As you know CRA audits Canadian citizens every year and you can be a good candidate. If you are caught be prepared to pony up hefty fines.

Look these matters are always complicated and I know how you feel. I guess I and W_man were more concerned in satisfying the law, but if you cannot you may need to accept it. Feel free to write in private to me and will be glad to have a chat with you about this.

Cheers,


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## Mclovin oo7 (Sep 25, 2012)

w_man said:


> Is your wife in Canada or here? Does your company not provide you with Health Insurance? Mine provides BUPA worldwide insurance so I'm covered when I go to Canada. You can also purchase travel insurance when you visit Canada - I know you visit quite frequently so you might want to figure out what that will cost.
> 
> I don't think you have an option to keep your OHIP as a non-resident. You won't be paying taxes so can't use the free healthcare. On the other hand, Canadian taxes aren't cheap - getting worldwide health plan here would be the ideal situation. I would recommend BUPA's Worldwide plans. Have had them for 3 years now and their coverage is amazing. A bit on a pricey side though ... your employer might pay for it?
> 
> ...


My wife is here. My company provides me the medical insurance so currently I have both - Canadian as well as local. 

Let me see what my accountant says. I might have to come back to you.

I was just finalizing a X6 in Canada as I was getting a great deal but looks like, I will have to drive rentals.

Thanks again!


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## arsalanask (Dec 6, 2014)

Hi. I came across this forum while searching for Canadian tax accountants. I have recently received PR and plan on moving to Toronto shortly. Can someone please recommend a good and reasonably affordable tax accountant who I can reach out to for advice?


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## w_man (Apr 16, 2010)

arsalanask said:


> Hi. I came across this forum while searching for Canadian tax accountants. I have recently received PR and plan on moving to Toronto shortly. Can someone please recommend a good and reasonably affordable tax accountant who I can reach out to for advice?


Might want to mention which city you are moving to for some recommendations. I know someone in Calgary but also depends on what kind of tax accountant you are looking for. Just general Canadian tax? non-residency?


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## arsalanask (Dec 6, 2014)

w_man said:


> Might want to mention which city you are moving to for some recommendations. I know someone in Calgary but also depends on what kind of tax accountant you are looking for. Just general Canadian tax? non-residency?


thanks for writing back. I plan to move to Toronto with my family. Need general tax advice.


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