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Proof of Funds - Tips and Tricks

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Painter lady

Hi everyone 

Say your parents, being nice and all, give you a hefty sum of money for your POF, what would be the tax implications? I can just imagine SARS circling us like a pack of wolves  :ph34r:

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GrantM
1 hour ago, Painter lady said:

Hi everyone 

Say your parents, being nice and all, give you a hefty sum of money for your POF, what would be the tax implications? I can just imagine SARS circling us like a pack of wolves  :ph34r:

If it is over R100,000 then the donor will have to pay 20% of the total in donations tax.

" The person making the donation (donor) is liable for the tax but if the donor fails to pay the tax within the  set period the donor and donee are jointly and severally liable for the tax (section 59). "

Source: http://www.sars.gov.za/TaxTypes/DonationsTax/Pages/default.aspx

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Painter lady

Thanks @GrantM! Very useful info indeed.

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FaithFUL
On ‎13‎/‎06‎/‎2015 at 9:43 AM, Guest said:

One can use the equity in your home and take out an access bond. (bond in SA is a mortgage Canada). Transfer the money into an investment account that earns interest. There you have proof of cash funds. In addition the money is earning interest so you recover part of the additional home loan / bond payment. Might not be practical for everybody, but I reckon if you are going to sell your home anyway, why not use it.

So, my dearest hubby does not want to sell the house unless there is an ITA from NB or Canada. We have to sell the house to get the required liquid cash that NB needs. I am yet to send of our EOI to NB as I feel that hubby needs time to process stuff. Even though he is very keen to do the big move, I do not want to pressure him.

He then thought that we could extend our bond to obtain the funds & stick the cash into a money market. If we get the magic NP ITA & the statements are "younger" than six months, would they want to know where the funds came from? I'm nervous that they'll view the funds as encumbered?

When I mentioned my concern to him his new thought was to use the extra funds to settle our one vehicle, then sell it & use that as proof of funds. We can then use the Rxx amount that we currently pay on the HP & car insurance and stick that into the extended bond. It will be a pain having only one vehicle, but it's one less thing to sell if we do get an ITA :P

Any thoughts?

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StuartCT

You could try using your retirement fund as POF. That's what I did... Just make sure to show the tax rates and exchange rates in the calculation.

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FaithFUL
46 minutes ago, StuartCT said:

You could try using your retirement fund as POF. That's what I did... Just make sure to show the tax rates and exchange rates in the calculation.

Our RA is not sufficient to cover the amount. We started RA a bit late in life.

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QueenOfHeartsZA

My husband was hesitant to put our house on the market too but after a month of processing the options he decided we have to. So the house is up for sale now and they take pictures tomorrow. It's very scary but also we have realises that we have to take the risk. If we sell, we will sell one car and move closer to the gautrain bus route. I'll miss my home. It's our first home together so it breaks my heart.

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RikusF
On 8/22/2016 at 9:05 AM, WannaB Expat said:

So, my dearest hubby does not want to sell the house unless there is an ITA from NB or Canada. We have to sell the house to get the required liquid cash that NB needs. I am yet to send of our EOI to NB as I feel that hubby needs time to process stuff. Even though he is very keen to do the big move, I do not want to pressure him.

He then thought that we could extend our bond to obtain the funds & stick the cash into a money market. If we get the magic NP ITA & the statements are "younger" than six months, would they want to know where the funds came from? I'm nervous that they'll view the funds as encumbered?

When I mentioned my concern to him his new thought was to use the extra funds to settle our one vehicle, then sell it & use that as proof of funds. We can then use the Rxx amount that we currently pay on the HP & car insurance and stick that into the extended bond. It will be a pain having only one vehicle, but it's one less thing to sell if we do get an ITA :P

Any thoughts?

I have the same thing here. 

So, we either get a larger bond and transfer the necessary funds into a savings account. 

Or, can we get a valuation on the property with an estate agent and a letter to say they are marketing the property and we will sell once we get an ITA or PR?

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FaithFUL
On ‎29‎/‎10‎/‎2016 at 0:22 AM, RikusF said:

I have the same thing here. 

So, we either get a larger bond and transfer the necessary funds into a savings account. 

Or, can we get a valuation on the property with an estate agent and a letter to say they are marketing the property and we will sell once we get an ITA or PR?

I doubt the last option would work. We went to a NBPNP session & they really hammered on the fact that they will only accept liquid cash. They will accept secured bonds, but not unsecured bonds or any investments such as unit trusts or shares unless it has been cashed in. They won't consider property, even if it is paid off. Their reasoning was that the property might not get sold & then you won't have the required proof of funds.

I know CIC will accept your last idea, some of the members here have done this for proof of funds.

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Qrios1

I would like to confirm that we only submitted our pension funds as proof of funds. I had made an excel cover sheet with the calculations ie pension less tax = net amount to be cashed out on resignation.  Very important I attached proof from pension fund/administrator statement, SARS schedule on tax on withdrawals from Pension as well as Canadian exchange rate at date of calculations. I saved all under one PDF. We did not submit bank statements. Please note this was what worked for us. I am not sure if they take into account how much is in your pension but ours was way more than the required amount.  

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QueenOfHeartsZA

My husband has been enquiring about how we can go about getting the money we have, out the country. We received this information from the stock broker he deals with. It seems very promising.

 

I can only open a Call Account in Canadian Dollars.  So it cannot be linked to a debit card.  But the client will still have full internet banking facilities to be able to move money in and out of the account.  Please find the Fact Sheet attached – they need to keep the equivalent of GBP 3,000 in the account in order to avoid banking charges’.

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CarelG

How do I get my bank statements stamped when the account is with RBC in Canada and I am in SA? 

I thought I was planning well ahead, so I opened up a RBC account (and got verified, so full functionality on the account) in November 2016 when in was in Toronto, and transferred more than the POF funds. I thought this was a wise move, as the money is already converted into CAD, so one less letter of explanation.

This morning I remembered something about the statements being stamped! I only get e-statement.....what now? Compulsive planning backfiring?

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MaryJane

You could perhaps contact/email RBC to mail you the stamped statements or have it emailed as a digital copy (don't know if this is accepted by CIC)?

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CarelG

@MaryJane I also thought about asking them to print it out, stamp it, and scan and email to me. It would be the same sequence for me if I had it in hand. I do have digital copies.....but I am worried they would be insistent on the stamp being on there.

 

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QueenOfHeartsZA
35 minutes ago, CallieMarie said:

@MaryJane I also thought about asking them to print it out, stamp it, and scan and email to me. It would be the same sequence for me if I had it in hand. I do have digital copies.....but I am worried they would be insistent on the stamp being on there.

 

O dear, we have done the same thing. My husband will need to email and ask for them to stamp and email to us. Hopefully he is able to.

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CarelG

Is this another problem: FNB doesn't print out anything in color anymore....even the letterhead part is only with black ink. Would it suffice when stamped?

 

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QueenOfHeartsZA
8 hours ago, CallieMarie said:

Is this another problem: FNB doesn't print out anything in color anymore....even the letterhead part is only with black ink. Would it suffice when stamped?

 

Hi @CallieMarie we have got our letter from RBC. It is also in black and white with only the signature in blue

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Nala

Hi All!!

Apologies if this has already been addressed somewhere and I missed it. With regards to proof of funds and mortgage. My ITA came as a pleasant surprise - hence I have made no move to sell my property yet and would be afraid to do so until I actually have a visa in my grubby little paws :D 

Initially I though I could simply use bank statements as proof of funds - but it would seem that a bank letter is required with a list of assets and liabilities. Would the mortgage count against me? The nett effect in my case would of course be a minus :P I could always state the intention to sell the property or the fact that it is successfully rented? Any advice from those who left before selling their properties?

Thank you!!

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MaryJane

Hi @Nala, just wanted to clarify the negative net effect. If you want to include the mortgage on the statement of assets and liabilities, won't you need to include the asset to which the mortgage is raised?

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Nala

Oh I am very blond :blink: Late nights, little sleep and lots of stress - completely forgot about the asset side of it!!!:D I do apologize. Any advice on how to get a value? External valuation?

Edited by Nala

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Nala

Can I just leave the assets/liabilities off and just reflect the cash balances? 

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Ribsy

@Nala.  My approach was to provide the stamped bank statements and bank account summary which demonstrated sufficient liquid funds in excess of the minimum requirement.  In addition, I provided an additional Asset / Liability comparison as additional supporting documentation to indicate that available funds after successful PR would be significantly greater than minimum requirements. 

 

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Nala

Thanks Ribsy!! :) 

I think the stress is getting to me :P Last hurdle! ...at least for now :D 

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Ydean Hartzenberg
Hi all
 
If you don't mind, I need some clarity regarding proof of funds.  I'm not sure what to do with my R100,000 car debt.  To me it is obvious, I cannot sell my car before I get on the plane, but would the immigration officer see it like this also.  I obtained a settlement quote from the bank and opposed it to my cars retail value.  Should I even include the car debt on our application or not?
 
I'd greatly appreciate your advice regarding this.

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Ribsy
18 hours ago, Ydean Hartzenberg said:
Hi all
 
If you don't mind, I need some clarity regarding proof of funds.  I'm not sure what to do with my R100,000 car debt.  To me it is obvious, I cannot sell my car before I get on the plane, but would the immigration officer see it like this also.  I obtained a settlement quote from the bank and opposed it to my cars retail value.  Should I even include the car debt on our application or not?
 
I'd greatly appreciate your advice regarding this.

Hi @Ydean Hartzenberg,

Your car debt may be irrelevant if you are able to demonstrate other liquid funds which are greater than the minimum requirement.  You may include it as part of an Asset / Liability analysis should you wish to add additional information. Hope this helps...

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