Hey resurrecting the forum for my own question:
My Father in Law is a Bahamas citizen. He has made a lot of money working there for a corporation which pays him incredibly well for his work.
His daughter and I recently had his first and probably only Grandson and he wishes to send us a very large gift. I'm talking multiple six figures big (500k), possibly even seven figures(1,000,000+). He wants to give it all to us and his Grandson so we can flourish.
Several questions:
1) Is gifting us cash from the Bahamas an option for him? His daughter and I are Canada citizens, he is not. He would be gifting it directly to his daughter.
2) Will this incur taxes on our end? I understand he pays no income tax in the Bahamas, unsure how that works with a gift from there.
3) I know banks have limits on how much he can wire in one transfer, and he isn't against doing this multiple times, but would this be problematic legally speaking?
He has consulted several tax specialists in the Bahamas but they have been incredibly vague and want him to pay upfront for their services. There are a lot of untrustworthy practices in his country so he just wants more information. I have scoured the tax laws on the CRA website and Federal Justice Law database but nothing really speaks specifically to this kind of thing. Last thing any of us want to do is incur any kind of legal issues. The money is legit, the corporation is real, he is paid for services both on a per hour and commission basis.
Thank you!