Question: My mother is beginning to receive a pension from the United Kingdom. Does she declare this as taxable income in Canada?

Answer: Adrian Mastracci, president of KCM Wealth Management, says Canadian residents receiving foreign pensions are taxed in the same way as private pensions received from a Canadian source, subject to the "foreign retirement arrangement" rules. Generally, a portion of the pension may be exempt from tax. Foreign source government pensions, similar to our OAS, may receive special treatment under social security treaties.
 

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.