Whether you are buying or selling, if you are engaging in gold or silver bullion sales in Canada, you need to follow a few very simple rules while also keeping in mind the reporting requirements of our Canada Revenue Agency.
Canadians have never before had such unobstructed access to confidently and safely trade in precious metals, which includes gold, silver and platinum with a purity of at least 99.5%. This includes bars, coins, rounds and wafers.
That being said, bullion dealers have obligations and responsibilities to track and report on certain bullion transactions. Here are just a few of the main areas you will need to keep in mind.
Buying Bullion Is Tax-Free
This is one of the most important reasons why buying bullion in Canada is so popular! Whether you buy a one-gram platinum bar or a 10-ounce gold coin, you will pay no provincial sales tax or federal sales tax on your purchase. The dollar amount on a listing on Royal Bull’s shopping page is the exact amount you will pay, plus shipping. Keep in mind that this only applies to precious metals with high purity, and greatly increases the amount of profit you can achieve on your investment.
Selling Bullion is Taxed
Like other investment opportunities in Canada, sales of bullion will be charged capital gains tax with all sales of over $200. (Assuming that there is a profit on your investment.) Your transaction(s) whether you profit or lose on your investment will be reported to the Government of Canada by the bullion dealer.
Special Notes on Bullion Transaction Requirements
Bullion purchases of less than one ounce are not considered to be investments, so you do not need to report these transactions.
Reporting Large Cash Payments
All payments of $10,000 or more in cash in a 24-hour period are reported to the Government of Canada. This includes any payments made by third parties. Royal Bull keeps records of all transactions, and copies of suspicious transactions and keeps all client identification information.
Royal Bull is Committed to Reporting Suspicious Activity
Canadian precious metal dealers such as Royal Bull report suspicious transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for further evaluation to help stop terrorist activity around the world.
Understanding the requirements of buying and selling precious metals, while understanding your dealer’s requirements, are a very good way to diversify your investment portfolio, protect yourself from economic crises and increase your ROI.
For much more information on the rules and regulations required by buyers, sellers and dealers of precious metals, contact Royal Bull directly.
