I was given a huge sum of money from close relative overseas to invest- no letters no guarantees no terms of repayment - Jointly, we decided I should set up a personal investment company and do day trading as a profession and means of earning income. I accrued losses and revenue Canada is auditing my loss claims which I kept accurate records and is easy to prove. However I am worried about how I should answer the source of funds (relative overseas loaned 2.2 million)?
Why is this a worry?
I am not sure what the concern is/
Please explain a bit more.
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Is the money loaned to me considered taxable income and what should proper response to the auditor in regards XXXXX XXXXX money
It is not income if it's a loan.There is no reason to think you would be taxed on it.If questioned say it's loan and prove that.
Even if it is gift with no attachments to return - the money is not taxable?
Therer are not taxes on gifts on inheritances.