Liz88

It’s about the Money Hunny!

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Liz88

:ph34r::ph34r::ph34r:

Shhhhhhh.... so tell me, how does one sneakily start siphoning all your money out of SA undetected *insert James Bond music* 

I’ve seen comments about how “financial emigration” isn’t the way to go due to assets being frozen

So what then? Do you cash your pension and start sending money to a RBC bank account which you opened from here? 

Sale of houses and cars? Where does that money end up and how? 

How much involvement is needed from a SARS point of view if any? 

Some say they leave their SA bank accounts open and just vanish by giving a close relative power of attorney to close everything once settled in 🇨🇦

How does one declare if you’re coming into Canada with $10,000 or more? 

What did you do? What was your experience... 

47963904-3E6E-405D-964D-98A1FA606741.jpeg

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MaryJane
1 hour ago, Liz88 said:

:ph34r::ph34r::ph34r:

Some say they leave their SA bank accounts open and just vanish by giving a close relative power of attorney to close everything once settled in 🇨🇦

This what I did. Not quite closed but digital now and I have a relationship with a virtual manager who will take an email to close the account. Haven't quite done it yet.

1 hour ago, Liz88 said:

:ph34r::ph34r::ph34r:

How does one declare if you’re coming into Canada with $10,000 or more? 

You fill out a form before you land. It's a declaration form that says you are bringing over CAD10,000 into Canada.

The more pertinent question is why would you want to bring them all in cash. For security reasons, it might be better to do it via bank transfer or international wire.

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Liz88
7 hours ago, MaryJane said:

This what I did. Not quite closed but digital now and I have a relationship with a virtual manager who will take an email to close the account. Haven't quite done it yet.

You fill out a form before you land. It's a declaration form that says you are bringing over CAD10,000 into Canada.

The more pertinent question is why would you want to bring them all in cash. For security reasons, it might be better to do it via bank transfer or international wire.

Thanks so much @MaryJane ❤️

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LidiaS77
17 hours ago, Liz88 said:

How much involvement is needed from a SARS point of view if any? 

As a South African resident you get a "single discretionary allowance" of a R 1 000 000 per year that you can e.g. move out of the country without needing a Tax Clearance Certificate. More info:

17 hours ago, Liz88 said:

How does one declare if you’re coming into Canada with $10,000 or more? 

You only have to fill in the declaration form if you have more than this amount with you physically such as cash or traveller's cheques. This amount does not refer to the money you have in the bank or the bank cards that you use to access your money. If you want to transfer money from SA to Canada you would probably do so via your banks and this is completely separate from and does not count as the physical "monetary instruments" that you may be bringing into the country.

Edited by LidiaS77
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SunshineGirl
On 2018/02/10 at 12:00 AM, LidiaS77 said:

As a South African resident you get a "single discretionary allowance" of a R 1 000 000 per year that you can e.g. move out of the country without needing a Tax Clearance Certificate.

Just to add to this point - children also get a travel allowance of R250k per year.  For clarity sake, the "year" in "per year" is calendar year (not tax year).\

Another thing to remember is that Canadian banks need you to obtain your PR status within a year of opening a bank account with them - this is my understanding, but maybe someone else might like to correct or add to this. 

Last 2 things - have a look at accounts like the FNB Global Account.  They allow you to hedge against the currency fluctuations, but you may only use the above travel allowance amounts per calendar year (the amount is a total amount).  Also, with regards to pension / retirement / provident funds, etc - have a read through the rules of your particular fund - some only allow you to withdraw the money in them on immigration (some want the form in which you declare that your SA bank accounts have been frozen).

Quite a tricky topic & really no one size fits all type of thing.  Chat to your bank & your financial advisor & ask, ask, ask lots of people for ideas.

Hope this helps!

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Liz88
6 hours ago, SunshineGirl said:

Just to add to this point - children also get a travel allowance of R250k per year.  For clarity sake, the "year" in "per year" is calendar year (not tax year).\

Another thing to remember is that Canadian banks need you to obtain your PR status within a year of opening a bank account with them - this is my understanding, but maybe someone else might like to correct or add to this. 

Last 2 things - have a look at accounts like the FNB Global Account.  They allow you to hedge against the currency fluctuations, but you may only use the above travel allowance amounts per calendar year (the amount is a total amount).  Also, with regards to pension / retirement / provident funds, etc - have a read through the rules of your particular fund - some only allow you to withdraw the money in them on immigration (some want the form in which you declare that your SA bank accounts have been frozen).

Quite a tricky topic & really no one size fits all type of thing.  Chat to your bank & your financial advisor & ask, ask, ask lots of people for ideas.

Hope this helps!

Thank you! I will investigate this further. So  much to consider. Didn’t know about the child allowances 

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Tracey22

The annual allowances nowadays are quite large, compared to the R100,000 that was allowed in the 80s.

Really, there should be no reason to take money out of SA illegally.  There is the travel allowance given every year, as well as the investment allowance.

The thing is that Canada and south Africa have signed a global treaty around money movement and income and revenue earned.  The last thing you want is for Canada to report your income taxes to SA, when you are not living there.

one aspect of exchange control that people forget is that according to the reserve bank, you can only purchase property outside of SA if it is for investment purposes -

 

here is a scenario: I know some that this happened to not so long ago...so think forward a few years, you buy a house in Canada, from money "siphoned" out of SA.  you live there and are not renting it out, so it is not an investment property.  you designate it as a primary residence for Canadian Tax purposes.  Then you sell it, and the profit made on selling it is not subject to capital gains tax because it is your primary resident, and you buy a new house  then somewhere in the recesses of the CRA database is an electronic flag that you are ex- South African, and the CRA links with the SARS (because there could be possible taxes payable by you as a south african) - because of this global agreement.

and then SARB finds out about you living overseas, having siphoned your money out, and slaps a 5% penalty of all money they believe you took out of SA without the necessary approvals.

 

Use the allowances available to you, and just transmit the money to Canada with the necessary approvals.

 

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