Currently, banks must report international electronic funds transfers (EFTs) of $10,000 or more to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Starting January 2015, the budget proposes that the same information for international EFTs be reported to the Canada Revenue Agency (CRA) for combating tax evasion and for use in the administration of the Income Tax Act, Excise Tax Act, and the Excise Act, 2001.
Note: Banks must report to FINTRAC and CRA if you send or receive a SWIFT for $10,000 or more in or out of Canada in a single transaction or in two or more transfers of less than $10,000 within 24 hours (24 hour rule)
Our office strategy toward this new legislation
Regardless of this new legislation, don’t hesitate to continue to transfer funds in and out of the country, it is completely legal. If you transfer in or out of Canada for business purpose and for the purpose of supporting your living expenses, you should keep it that way and just report the income part of it in your taxes.
Finally, if you receive any inquiries from CRA or FINTRACK about a transfer you made, please notify us and we can do the necessary analysis of the request and provide you with a sufficient answer.
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