"Given that there is no Canadian gift tax (as I understand), I am wondering if I can donate..."
- Details
- Category: International Planning Q&A
- Published on Tuesday, 27 September 2011 10:02
- Written by Greg McNally
Question from a Canadian-based IM Member:
Q: "Given that there is no Canadian gift tax (as I understand), I am wondering if I can donate a large amount to another person (outside of Canada) without drawing tax liability of later growth."
A (by Greg McNally): Yes, you can donate a large amount of money to another person outside of Canada, but the question becomes whether or not you want something in return. If your true intent is to do tax planning, then a donation does not work. You could however look into something like private placement insurance, which would possibly work to provide tax free growth and asset protection planning.
About N. Gregory McNally, BA, LL.B, MBA, JD, LL.M (Int'l Tax), TEP
A Canadian by birth, Greg McNally is an international tax lawyer by training. He has earned various degrees, including law degrees in both Canada and the United States, a Masters of Law in International Tax and a Masters in Business Administration. He practiced law in the Turks and Caicos Islands for 10 years from 1992 until 2002, when he returned to Canada and joined the Royal Bank (Global Private Banking) as their Senior Manager of International Services in Toronto. In 2004, he started an international tax consulting firm called N. Gregory McNally & Associates Ltd., where he now oversees the development and implementation of customized international wealth management solutions on behalf of high-net-worth and ultra high-net-worth clients.
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