Open account with a foreign resident and trade on their behalf

[nooby_mcnoob]

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.

 

[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.

 

[cruisecontrol]

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.

 

[zdreg]

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 lawyer to set something up for you.

The Original Poster has not explained his situation in sufficient detail . Therefore suggesting a Panama paper lawyer is not proper.

 

[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.

 

[3acor]

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.

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?

 

[3acor]

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.

So if you gift your gains to a non canadian. You dont pay taxes on them?

 

[cruisecontrol]

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?

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?

 

[Eli Stern]

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?

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.

 

[cruisecontrol]

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.

Wrong. If you are resident in Canada, you are taxed on foreign source income, modulo any deductions available via double taxation treaties.