Open account with a foreign resident and trade on their behalf

Discussion in 'Taxes and Accounting' started by 3acor, May 11, 2019.

  1. 3acor

    3acor

    Hello guys,

    If someone is Canadian and he has someone living internationally who opens an IB account in their name.

    If, I, a Canadian resident, trade on their behalf and have the money transferred to my bank in Canada, will I still be subject to Canadian taxes?
     
  2. gaussian

    gaussian

    This isn't a question for a trading forum. What you have here is a legal minefield. You should consult a lawyer specializing in these matters. The money you spend will be well worth it.
     
  3. ZBZB

    ZBZB

    Open an IB friends and family account and link the two accounts. No need to accept money so no legal minefield.
     
    nooby_mcnoob and traderslair like this.
  4. No lawyer required, I can tell you if the money is transferred to your account, you definitely will be subject to Canadian tax. This is not a correct setup for trading on someone's behalf.
     
  5. zdreg

    zdreg

    what money is being transferred to an account in Canada? payment for your services or something else?
     
  6. 3acor

    3acor

    money in a bank in Lebanon to a Canadian bank
     
  7. 3acor

    3acor

    So you mean I can trade using that account without being subject to taxes?
     
  8. 3acor

    3acor

    I don't think there are taxes on bank to bank transfers?
     
  9. There are taxes on capital gains and taxes on income.

    Your first post isn't worded that clearly, what I understood is that you planned to have someone else's money transferred into your account in order to trade "on their behalf". In this scenario you will be personally taxed on any PnL that is made. If you meant something else, please clarify.

    Only other interpretation I can imagine is that money transfers you mentioned are payment for your services as a trader, in which case you will pay income tax. Generally speaking if you make money off this in any way you will have to pay taxes, in case that wasn't obvious to you.
     
  10. ZBZB

    ZBZB

    Depends where the IB friends and family account are domiciled. I don’t know if they have to be in the same place.
     
    #10     May 12, 2019