Moving out of UK

berserker

thanks dunston that helps

wayne42

Just wondering.
How would the the Canadian tax authorities ever know about a savings account on the Isle of man if left undeclared?
Does the offshore bank have legal obligations to declare this info on behalf of their client to the relevant tax authorities? It would be nice to understand how these international tax rules are enforced.
I am indeed fortunate that the country that I live in has no interest on my world income.

Cook_County

wayne42 wrote: »

Just wondering.

I am indeed fortunate that the country that I live in has no interest on my world income.

I am not sure why you are interested in knowing then?

Suffice it say - quite simply - that information is exchanged under double tax agreements. I can go into more details but in short failure to declare in Canada would be a criminal offence which could lead to fines, jail or deportation. So in summary not recommended money saving techniques.

For UK domiciliaries such as yourself the value would be declared to HMRC by your executors as part of the IHT return in the event of your early death so this would give another opportunity for the tax authorities to be notified...

Dush

I have just moved to Canada from UK. Before living I opened a couple of saving accounts and decided to pay UK taxes for now. Taxation in Canada is a bit wicked and you have to understand how it works before bringing money here. Anyway, the interest from your saving accounts could be in a great help for a start of new life. But as a canadian resident you must to declare all worldwide income, savings etc for canadian tax purposes. It is up to you, would u like to show it or not. They will never find out about you money somewhere outside of Canada until one day you decide to bring them to the country, after they will ask a lot of questions and taxes. This is a big dilemma for me and I am looking for an answer now.

Cheers

jimatko

Wow this has turned into a 'heated debate' as Mrs Merton would say.

Cook seems to know a lot about this and Dush knows the same and now doesn't know what to do

If you are being re-located does your employer not offer free advice from one of the major accountants?

The other avenue is the Jersey banks. On a day to day basis they will have migrants going to Canada and will roughly know the rules - certainly in terms of bank accounts if not investments.

If your situation is a bit unclear (and the amounts are large) then it is worthwhile paying an accountant with specialism in cross border tax to advise you.

The UK can be a great tax haven for non-doms if they don't remit income to the UK but it doesn't sound as if it is as simple vice versa - unless you take out an 'immigrant' trust as Cook suggests.

Don't be afraid to pay for advice even if it seems it costs a lot of money but make sure you roughly know what advice you want if that makes sense That clock will always be ticking in the accountants office, even when they go to the toilet