Open account with a foreign resident and trade on their behalf

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

  1. Two ways to go about this. Set it up through a lawyer or guess based on forum posts.

    Most lawyers I know love sticking it to the government so maybe you can find a Panama papers lawyer to set something up for you.
    #11     May 12, 2019
  2. schweiz


    I live in Europe and we have a system of gifts that are free of any taxation. At least if it's not about real estate.

    I found this about Canada; looks similar to what we have:
    Capital Gains Gifts
    Canadian taxpayers can give all the cash they want to people and organizations without causing a taxable event. Canada does not impose a tax on cash gifts. Noncash gifts are another story.

    Maybe it is worth an effort to find out if this works. You might be able to receive your part as a gift.
    #12     May 12, 2019
  3. Accepting a gift as payment for service is not legal, however if you are family with the client you could probably get away with it, assuming it's not too obvious what's going on (not your only source of income, just a few lump sums). If you do this in any way that resembles professionally though, you can certainly expect that you will not pass an audit.
    #13     May 12, 2019
  4. zdreg


    The Original Poster has not explained his situation in sufficient detail . Therefore suggesting a Panama paper lawyer is not proper.
    #14     May 12, 2019
  5. joyice


    This isn't an inquiry for an exchanging gathering. What you have here is a lawful minefield. You ought to counsel a legal counselor having some expertise in these issues. The cash you spend will be well justified, despite all the trouble.
    #15     May 12, 2019
    3acor likes this.
  6. 3acor

    3acor Guest

    I meant that you get someone who is noj canadian who opens an account with IB. You trade under their account name. Once you make money, you transfer it from their IB account to their bank account in Lebanon and then you transfer it from their bank account in Lebanon to your bank in Canada.

    Is it more clear now?
    #16     May 12, 2019
  7. 3acor

    3acor Guest

    So if you gift your gains to a non canadian. You dont pay taxes on them?
    #17     May 12, 2019
  8. Why would "you" be transferring anything from somebody else's bank account? This makes even less sense than before. What is your relationship with this other person?
    #18     May 12, 2019
  9. This is what I understood from the question that you have put.
    1. You are trading on behalf of a person who lives somewhere outside Canada, while you living in Canada.
    2. The money gets transferred to you is your account is the salary, wages or commission that you earned from trading.

    In this case, as I understand, as your income is not generated from any sources within Canada; you are not subject to the income tax.

    P.S. It is wise to consult a tax lawyer.
    #19     May 13, 2019
    3acor likes this.
  10. Wrong. If you are resident in Canada, you are taxed on foreign source income, modulo any deductions available via double taxation treaties.
    #20     May 13, 2019