Sending money to S/O while in tax haven

[NoKYC]

It's not yet the case but once I'll leave the country (Canada), I'm leaving behind my s/o because she wants to stay a little longer for her parents, etc. Legally I'm single, unofficially no but we have not declare it to the tax authority. My lawyer says it's not a problem as long as I don't have contacts with her on a regular basis (frequent visits etc). However I want to be able to send her money but I don't want the CRA seeing it nor the banks.

My first idea was to send cash with DHL, it's easy, anonymous BUT I'm wondering if customs will pick it up? My 2nd idea was high prepaid credit cards (>50k) but is it doable?

Do you guys have any other suggestions on way to send back high sums of money without triggering the system? And what do you think of my ideas?

 

[Sols]

Trigger what system? There is no gift tax in Canada.

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This is the probably the answer to your question.

 

[JustAnotherNomad]

I believe his worry is about being considered tax resident due to "close family" in Canada. But I'm quite sure that you'd have to be married for that to be an issue? If your lawyer says it's not an issue, what are you worried about?

 

[NoKYC]

Sols said:
Trigger what system? There is no gift tax in Canada.
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It's going to be highly suspect to give 50k-100k from the UAE to my former common law partner. They might use it to say that I'm still a tax resident of Canada.

 

[NoKYC]

JustAnotherNomad said:
I believe his worry is about being considered tax resident due to "close family" in Canada. But I'm quite sure that you'd have to be married for that to be an issue? If your lawyer says it's not an issue, what are you worried about?
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I didn't talk to him about the money. BTW, common law is considered married in Canada. They ask you on the tax form.

 

[Sols]

NoKYC said:
It's going to be highly suspect to give 50k-100k from the UAE to my former common law partner.
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Nothing strange about that, as long as it's commensurate with your overall wealth and income and can be proven (i.e. you can prove that your income is legitimate).

NoKYC said:
They might use it to say that I'm still a tax resident of Canada.
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Seek legal advice. Get a written legal opinion.

If your only connection is a family member (common law spouse), it's unlikely that alone would make you tax resident in Canada.

This is a situation where if you take extra steps, things end up looking worse for your partner in Canada.

Receiving wires from UAE (a known high-income country) is fine. The bank might ask for supporting documents the first few times but then they'll leave you be.

Receiving money through cash in envelopes, offshore prepaid cards (acquired under AML rules not up to Canadian standards), through offshore companies/trusts, through third-party solutions, crypto, and whatever else looks so much worse.

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This is the probably the answer to your question.

 

[NoKYC]

Sols said:
Nothing strange about that, as long as it's commensurate with your overall wealth and income and can be proven (i.e. you can prove that your income is legitimate).


Seek legal advice. Get a written legal opinion.

If your only connection is a family member (common law spouse), it's unlikely that alone would make you tax resident in Canada.

This is a situation where if you take extra steps, things end up looking worse for your partner in Canada.

Receiving wires from UAE (a known high-income country) is fine. The bank might ask for supporting documents the first few times but then they'll leave you be.

Receiving money through cash in envelopes, offshore prepaid cards (acquired under AML rules not up to Canadian standards), through offshore companies/trusts, through third-party solutions, crypto, and whatever else looks so much worse.
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I appreciate the advice but I wouldn't resort to borderline or plain illegal ways if I didn't have to. I can't say too much or it might narrow down who I am. But in Canada, the two strongest ties in tax residency is owning a home and being married/common law.

My tax lawyer is so worried about the situation that he strongly suggest to rent an Airbnb or hotel when I'll want to come back! And with the UAE new TRC rules, I'm not eligible anymore so I can't shove it in the CRA face.

 

[Sols]

You're very focused on yourself. What I'm trying to highlight is that you're exposing your partner to committing financial crimes, all for the benefit of you not being personally liable for tax in Canada.

You can definitely set something up that separates you from the money (for example a trust with your partner as a beneficiary). But depending on what you go for (you've already mentioned sending cash by courier), you're creating a situation where your partner is at risk of committing or at least being investigated for tax evasion, money laundering, wire fraud, and so on. If she's found carrying around 50,000 CAD worth of offshore prepaid cards, that's going to be a lot of uncomfortable conversations with authorities. Even if she's innocent (which is not a guarantee), it's a draining experience.

Do you want to avoid Canadian banks? Have your partner open a bank account outside of Canada.

Do you want to avoid Canadian tax authority knowing about the money? Have your partner open a bank account outside of Canada in a non-CRS country. The funds will have to stay there, though, or questions might arise when funds are wired into Canada.

Do you want to send money to your partner in Canada without having to resort to banking in places you've never heard of with banks whose balance sheets are secret and/or very weak? Maybe some sort of trust arrangement with a trustee in one of the more reputable jurisdictions (BVI, Caymans, Isle of Man). The trustee can then wire money to your partner. Under CRS, reporting may still be done to Canada. It depends on how the whole arrangement is set up.

Do you want a cheap, convenient solution? Try crypto, try prepaid cards, try cash in mail, and so on. It might work. It might go by undetected. But if it draws attention, it quickly escalates into law enforcement.

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This is the probably the answer to your question.

 

[AMD]

Why not send money in crypto, exchange with AdvCash and use the money with the debit card.

That is anonymous and can work fine for such use.

 

[PaulKruger]

AMD said:
Why not send money in crypto, exchange with AdvCash and use the money with the debit card.

That is anonymous and can work fine for such use.
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agree, that would be nice, smooth and easy.

 

[NoKYC]

AMD said:
Why not send money in crypto, exchange with AdvCash and use the money with the debit card.

That is anonymous and can work fine for such use.
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And a very practical solution. I'll look into it! Thanks

 

[Rzeznik]

NoKYC said:
However I want to be able to send her money but I don't want the CRA seeing it nor the banks.
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Imagine you send few books with money between pages ? (easy)
Just don't send more like problematic threshold like 10k Euro/USD/cad at once.
But if your girlfriend have no job and buy items like car/house/land anything that is registered and reported to government officials can get her in trouble.

Crypto CC in your name fromAdvCash/Crypto.com etc sened her will also make job and noone will make her problem. But such transactions can make you problem potentially that you were in Canada. That just theory but if you break with that girl she knows that she goes to report you to tax authorities in revenge and you have problem.

 

[JohnLocke]

Rzeznik said:
Crypto CC in your name fromAdvCash/Crypto.com etc sened her will also make job
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This actually works well in most cases where you want to pay someone something without the tax man to get informed.

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[PaulKruger]

Rzeznik said:
Crypto CC in your name fromAdvCash/Crypto.com etc sened her will also make job and noone will make her problem. But such transactions can make you problem potentially that you were in Canada. That just theory but if you break with that girl she knows that she goes to report you to tax authorities in revenge and you have problem.
Click to expand...

can work well with real darks in the basic setup.