1

My mum is a citizen of Emirates and has worked there for a long time. She is a teacher there. I live in Canada with my dad(currently unemployed) and go to school in Alberta. Both my parents obtained residency in Canada in 2012 and my dad has paid taxes since then. My mum has come to canada in 2014 after leaving work in Emirates.

She does not have a job yet and is busy studying. She has transferred 9000CAD to our bank here so that we can afford to pay our rent and other expenses. My mum has earned the money in Emirates.

So I would like to know if she has to pay taxes on the money she has brought in to Canada from Emirates to support us. I know some countries have a double tax agreement contract. How can I learn more about what to do so that I can better understand my mums situation and what we can do.

Also will my mum be in any trouble?

Your help is greatly appreciated. Thank you

|improve this question
  • 1
    What kind of tax are you worried about her paying? Transferring her own money doesn't seem like a taxable event, generally speaking. – Joe Jun 16 '17 at 14:41
  • Hi Joe, I'm not sure if she is liable for "any" tax based on her savings from the emirates. Ok, that is good to hear. I was worried that if she transfer her money then they might arrest her for not paying tax in Canada on her money from Emirates – Hishalv Jun 16 '17 at 14:56
  • I'm not Canadian, so I couldn't speak for Canadian law, but most first world countries don't have taxes on money that you earned elsewhere if you're not a citizen or (current) resident of said country. Your mom wasn't resident in Canada in 2012-2014, right? Just had the right to be? – Joe Jun 16 '17 at 15:31
  • Ah i see. No my mum had her residency since 2012 but not citizenship. She only came to Canada in 2016 to stay. What is the best route to take to find out for sure. thanks – Hishalv Jun 16 '17 at 15:44
  • @Hishalv That changes things. If she was a resident of Canada in 2012, any income earned from 2012-onward may be subject to Canadian tax. At bare minimum, she would very likely need to declare the income earned during her residency, but may be able to claim foreign tax credits for taxes already paid in Emirates. – Grade 'Eh' Bacon Jun 16 '17 at 17:18
4

Transferring money to Canada does not mean she will be taxed on it. You are taxed on your earnings, not what you move around.

Whether your mother has to pay Canadian taxes at all in 2014 depends on whether she was resident for tax purposes that year. That is not the same thing as being a Permanent Resident. Is she was resident for tax purposes, she would pay tax on all earnings for that year, wherever they were earned ( with an allowance for taxes already paid elsewhere).

|improve this answer
1

She will likely be considered a Canadian resident for tax purposes due to the fact that she has fixed assets in Canada under her name. This is under the assumption that she and her husband own a house together. If not and she does not have any other substantial assets in Canada, she would not be considered a Canadian resident for tax purposes.

(At least, that was what has been hammered me many a-times in tax class. Oof, the memories!)

|improve this answer

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.