I'm curious if anyone has taken the step to contribute to a TSFA of a brother, cousin or friends who simply does not use thier contribution limit.
I ask because I am getting grey answers(from my accountant) on the subject of legality and wonder if anyone has had concrete advice from thier accountants or lawyers on the matter.
I am quite comfortable that it is in fact legal to provide the funds to anyone as a gift in Canada and they can certainly invest those funds into a TFSA as the whole transaction is done with aftertax dollars....however where it gets grey is, if your intention is to realize the benefits of the tax free gains by having the contents of the friend or relatives TFSA withdrawn and gifted back to you...it may(and I think likely) be considered tax avoidance in both circumstances (I do understand that spousal TFSA's are a different story)
Thanks,
S.