If i move to Canada with BTC. Do i owe tax to canada goverment?

royalfestus

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Quote from: FatFork on January 31, 2023, 10:32:05 AM

No, there is no tax to buy or hold cryptocurrencies in Canada. However, if you decide to sell your cryptocurrency holdings, a tax basis may arise.

Yes. The government can request information about the source of your BTC, but only if it has been informed of your cryptocurrency holdings or after the sale.

What is the percentage tax on cryptocurrency sales there?
Can decentralised exchanges be a hiding place from the government, especially if funds can be sent through P2P to foreign bank accounts?
Does the government have access to the holdings one has before entering the country?

Eternad

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Quote from: AverageGlabella on February 01, 2023, 12:13:25 PM

If you have earned that btc outside of Canada I do not think they can legally tax you on it but you should file your taxes to the country you currently live in because they would want to tax you on it. Any money earned in Canada would be taxed though but you would have to contact a accountant if you wanted specific answers on btc taxation in Canada.

the place of earning it is not a question here but rather where he withdraw the money and convert it to fiat which in his case was Canada. The tax office will definitely ask for an income report for the capital that he transfers to his Bank account. Asking a tax expert in Canada is the best thing to do to avoid conflict since everything on his bank account should be explained and money coming from an outside source is considered as profit if you move to Canada before this money is sent to his account. He might be committing tax evasion in case he failed to fully understand the taxation law.

zasad@

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Quote from: Findingnemo on February 02, 2023, 11:22:35 AM

Quote from: NinjaBitcoiner on January 31, 2023, 11:28:33 AM

Please read my questions again.

If someone buys cryptocurrency/ owns cryptocurrency before moving to canada then that means it is his capital before he become resident of canada so he should not be liable to pay tax on it in canada as this is the income from another country. no?

If you are a resident of a country at the time of selling your asset in their country then you are liable to pay taxes which can be whatever the rate the government proposed. But there are some countries with no tax policy which can be helpful for you in that case or else doing the trade-off the radar like via physical cash and nothing with bank account then you can avoid it too (illegally).

"The one who robs banks is a criminal, the one who owns a bank is doubly a criminal"(C)I don't remember who said it.
On what basis do you say it's legal or illegal?
If everything were so simple, then there would not be so many lawyers and financial consulting companies in the world. Who should be trusted: someone else's opinion or the opinion of a financial lawyer?
Each service has a cost, in the case of the amount of $ 230,000, it is easier to legalize in Canada than in other countries. But I'm not a lawyer

Findingnemo

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Quote from: NinjaBitcoiner on January 31, 2023, 11:28:33 AM

Please read my questions again.

If someone buys cryptocurrency/ owns cryptocurrency before moving to canada then that means it is his capital before he become resident of canada so he should not be liable to pay tax on it in canada as this is the income from another country. no?

If you are a resident of a country at the time of selling your asset in their country then you are liable to pay taxes which can be whatever the rate the government proposed. But there are some countries with no tax policy which can be helpful for you in that case or else doing the trade-off the radar like via physical cash and nothing with bank account then you can avoid it too (illegally).

zasad@

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Quote from: virasog on February 01, 2023, 02:26:10 PM

Quote from: NinjaBitcoiner on January 31, 2023, 10:08:01 AM

If someone owns 10 BTC and move to canada for living there permanently. do he owns canada govt. any tax on that bitcoin? Can the canada government ask for source of those BTC and how they are earned?

First think if you were bringing fiat money in Canada, would they have tax you on that amount? I don't think it make sense to give tax on money which you are bringing to Canada. Also, this will discourage the immigrants to bring their money in Canada and of course no county wants that, so by common sense you should not be advised to pay tax on this amount.
Same should go for cryptocurrencies and bitcoin.

Every country has social networks for expats. There you can find the answer to this question. Many Russians now live in various countries of the world, and even in the USA many private exchangers have appeared. The minimum amount is 10,000 dollars, the commission when exchanging for cash is 1%. If you pay in cash, then it cannot be tracked. If you do not make expensive purchases. I am not against taxes, but first you need to get used to the country, and then solve tax issues.

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Quote from: NinjaBitcoiner on January 31, 2023, 10:08:01 AM

If someone owns 10 BTC and move to canada for living there permanently. do he owns canada govt. any tax on that bitcoin? Can the canada government ask for source of those BTC and how they are earned?

First think if you were bringing fiat money in Canada, would they have tax you on that amount? I don't think it make sense to give tax on money which you are bringing to Canada. Also, this will discourage the immigrants to bring their money in Canada and of course no county wants that, so by common sense you should not be advised to pay tax on this amount.
Same should go for cryptocurrencies and bitcoin.

AverageGlabella

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If you have earned that btc outside of Canada I do not think they can legally tax you on it but you should file your taxes to the country you currently live in because they would want to tax you on it. Any money earned in Canada would be taxed though but you would have to contact a accountant if you wanted specific answers on btc taxation in Canada.

zasad@

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Quote from: NinjaBitcoiner on January 31, 2023, 11:28:33 AM

If someone buys cryptocurrency/ owns cryptocurrency before moving to canada then that means it is his capital before he become resident of canada so he should not be liable to pay tax on it in canada as this is the income from another country. no?

This is a double taxation issue.
I have not seen a double tax treaty between Canada and another country.
There are a lot of nuances here. For example, in the country where you live, the tax is 10%. In the country where you are moving, the tax is 15%. The tax office may require 5% tax from you.
Another point is the time when you cease to be a tax resident of the first country and become a tax resident of the second country.

FatFork

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Quote from: NinjaBitcoiner on January 31, 2023, 11:28:33 AM

If someone buys cryptocurrency/ owns cryptocurrency before moving to canada then that means it is his capital before he become resident of canada so he should not be liable to pay tax on it in canada as this is the income from another country. no?

I'm not an expert in Canadian tax laws, however, based on my brief online research (referencing the guide in my previous post), it appears they treat cryptocurrencies very similarly to, for example, the EU.

In your case, the focus is not merely on your change of residency from one country to another, but rather on your intended utilization of cryptocurrency and the method of acquisition. For instance, if you purchased BTC at $10,000 per coin, then sold it for $20,000 per coin after moving to Canada, you would be obligated to report the capital gains tax on the difference between the purchase and sale prices, according to Canadian tax regulations. In other words, the change of residence is irrelevant.

But, as I mentioned another thread, if you're unsure about whether you need to file a tax return, it's best to seek advice from a knowledgeable tax expert.

NinjaBitcoiner

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Quote from: FatFork on January 31, 2023, 10:32:05 AM

Quote from: NinjaBitcoiner on January 31, 2023, 10:08:01 AM

If someone owns 10 BTC and move to canada for living there permanently. do he owns canada govt. any tax on that bitcoin?

No, there is no tax to buy or hold cryptocurrencies in Canada. However, if you decide to sell your cryptocurrency holdings, a tax basis may arise.

Quote from: NinjaBitcoiner on January 31, 2023, 10:08:01 AM

Can the canada government ask for source of those BTC and how they are earned?

Yes. The government can request information about the source of your BTC, but only if it has been informed of your cryptocurrency holdings or after the sale.

Please read my questions again.

If someone buys cryptocurrency/ owns cryptocurrency before moving to canada then that means it is his capital before he become resident of canada so he should not be liable to pay tax on it in canada as this is the income from another country. no?

FatFork

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Quote from: NinjaBitcoiner on January 31, 2023, 10:08:01 AM

If someone owns 10 BTC and move to canada for living there permanently. do he owns canada govt. any tax on that bitcoin?

No, there is no tax to buy or hold cryptocurrencies in Canada. However, if you decide to sell your cryptocurrency holdings, a tax basis may arise.

Quote from: NinjaBitcoiner on January 31, 2023, 10:08:01 AM

Can the canada government ask for source of those BTC and how they are earned?

Yes. The government can request information about the source of your BTC, but only if it has been informed of your cryptocurrency holdings or after the sale.

NinjaBitcoiner

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If someone owns 10 BTC and move to canada for living there permanently. do he owns canada govt. any tax on that bitcoin? Can the canada government ask for source of those BTC and how they are earned?

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