I'm staying in Germany and I have a friend in India. He has a few ether coins in his wallet in India which he bought mid of 2017. He now wants to sell them. But in India, because of taxes, he will not gain much profit. So he asked me if he could send them to my wallet in Germany as a gift. I can sell them in Germany and send him the amount in parts as and when we happen to meet. Since it is a gift and I have not bought the coins I will not have to pay any tax on it in Germany. Is this legal and what are the risks?
As a general rule:
The person gifting has to declare it in their personal income tax declaration, in the section for capital gains and losses.
In some jurisdictions, the person receiving the gift is expected to declare a specific tax for donations. In some jurisdictions this tax may exist but not be actively prosecuted for small donations. In some jurisdictions it could be actively prosecuted and even be allowed prosecuting the person giving the gift if the person receiving the gift fails to comply with whatever local law requires.
The person receiving the gift, when releasing the gift either by gifting or by selling, has to declare it in their personal income tax declaration, in the section for capital gains and losses.
Being purist, no, what you want is not legal. If I understood you correctly, you are in a case of simulated contract, a contract that, by mutual agreement, does not express the true intent of the parties.
This is not legal advisory.