CRA Is Coming For Your Undeclared Income

[BAMan 55]

Any independent contractor in Ontario with a gross business income of at least $30,000 should have a HST number and is obliged to remit 13% of "sales less eligible input credits" (HST paid on business expenses) to the CRA, typically quarterly. So for rates of $120/200, that amounts to $10.62/17.70, i.e. net to contractor is $109.38/182.30.

Any SP/MPA not in compliance will, sooner or later, likely be detected. Then interest/fines/penalties will be assessed on the amount owed.
https://www.fin.gov.on.ca/en/tax/hst/index.html

 

[Jasmine Raine]

Who the f..k are you? A perfect totally honest saint, who never did any trick? As I read your post you nothing more than an envious , jealous, low class guy who can't swallow our hourly rate.
Thinking about your own TAX and leave ours alone.
That line: " My heart bleeds for you..." shows us perfectly what type of guy you are. Sarcasm is for winners Absalom, so you don't have the right to be sarcastic here.

He attacked her in another thread too.

He has a hate on for escorts. Best to just put in ignore.

 

[IRIS]

He attacked her in another thread too.

He has a hate on for escorts. Best to just put in ignore.

I can't ignore this asshole. Sorry!

 

[Jasmine Raine]

I can't ignore this asshole. Sorry!

No no, I get you. I meant for ladies to use the ignore feature from here. CE for sure since he seems to have an axe against her and she doesn't need to read that kind of crap.

Later of course, after you tell him how it really is. Lol

 

[james t kirk]

He attacked her in another thread too.

He has a hate on for escorts. Best to just put in ignore.

But is he wrong?

Do you declare your income and write a cheque to Ottawa for a third of what you make? Do you remit HST as you should?

 

[Jasmine Raine]

But is he wrong?

Do you declare your income and write a cheque to Ottawa for a third of what you make? Do you remit HST as you should?

I am already on record for that. I pay, I expense, my accounting firm fucking loves me. I am quarterly for my HST based on income.

Does honesty automatically mean you can be rude and disrespectful about it? He was an ass. You were not. There is a difference.

He said in the other thread that basically she shouldn't be giving relationship advice because she is an escort.

He is an asshole for the sake of being an asshole. That is just some more honesty for the pile.

 

[squeezer]

I don't blame the ladies, waitresses/waiters who fudge the numbers a bit to put a little extra in their jeans and for the self-righteous claiming they follow the law to the tee then stop paying for sex.

 

[james t kirk]

I am already on record for that. I pay, I expense, my accounting firm fucking loves me. I am quarterly for my HST based on income.

Does honesty automatically mean you can be rude and disrespectful about it? He was an ass. You were not. There is a difference.

He said in the other thread that basically she shouldn't be giving relationship advice because she is an escort.

He is an asshole for the sake of being an asshole. That is just some more honesty for the pile.

As long as you pay your taxes, you are golden with me.

Hell, even if you pay most of your taxes, you are golden with me. And by most, I mean like 80 percent of what you should be paying because I realize that is pretty good in the grand scheme of things. I am just aware that the vast majority of SPs do not declare a cent of the their income and prefer to fly under the radar. (But not all SPs I admit.)

There are lots of people who get paid in cash who never declare their cash income. You can see it every day from the guy who changes your roof for cash to the fast food place in the food court who ring in sale, but don't push enter (I see it, I let it go.) to the guy at the corner store who just tells you verbally how much you owe for your can of coke and he's added in the HST, but he hasn't rung in the sale, to the pizza take out joint, to waitress, to the accountant who does your taxes.

I just get worked up when I see people who make far more than me declaring nothing.

 

[_Melissa]

First of all servers make less than minimum wage BECAUSE they make tips. I don’t think it’s fair to have to pay tax on extra money that has nothing to do with the companies pay roll. Pay taxes on the hourly wage fine but not on tips. That’s so stupid.

 

[GameBoy27]

Who the f..k are you? A perfect totally honest saint, who never did any trick? As I read your post you nothing more than an envious , jealous, low class guy who can't swallow our hourly rate.
Thinking about your own TAX and leave ours alone.
That line: " My heart bleeds for you..." shows us perfectly what type of guy you are. Sarcasm is for winners Absalom, so you don't have the right to be sarcastic here.

Agreed! ^^^

I'm sure Absalom has never paid cash for anything to avoid paying taxes!

 

[rhuarc29]

Good. They should be going after tax cheats at all levels. Being lower class isn't an excuse.
And if you think they don't go after bigger fish, think again. The bigger fish simply don't make these simple mistakes (aka, they're better at covering it up).

 

[gaoler_99]

Nicely stated Iris and Jessica Rain. He must be a total piece of s#$%

 

[User 123]

Is Bitcoin income taxable? Because if so I guess I'm a criminal lmao.

 

[MadGeek]

Is Bitcoin income taxable? Because if so I guess I'm a criminal lmao.

Yup... see here: https://www.reddit.com/r/PersonalFinanceCanada/wiki/cryptocurrencyandtaxes

 

[james t kirk]

First of all servers make less than minimum wage BECAUSE they make tips. I don’t think it’s fair to have to pay tax on extra money that has nothing to do with the companies pay roll. Pay taxes on the hourly wage fine but not on tips. That’s so stupid.

That's not how it works.

Tips are income and income gets taxed. End of story.

Fair has nothing to do with it.

 

[User 123]

Yup... see here: https://www.reddit.com/r/PersonalFinanceCanada/wiki/cryptocurrencyandtaxes

Well shit lol. No more direct deposits from the exchange... Better start using the cash mail option.

 

[Sieggo]

Well shit lol. No more direct deposits from the exchange... Better start using the cash mail option.

That may not help you. I'm not sure if the CRA can get access to Bitcoin records, but if they can they'll be able to determine who hasn't declared their income from that source.

 

[Sophia Sinclair]

First of all servers make less than minimum wage BECAUSE they make tips. I don’t think it’s fair to have to pay tax on extra money that has nothing to do with the companies pay roll. Pay taxes on the hourly wage fine but not on tips. That’s so stupid.

Not according to the government. I was a waitress many moons ago and asked them why servers get paid less than minimum wage, thinking that tips (mostly undeclared) would be the answer. They told me it had nothing to do with that and was based on the type of work being performed. My then boyfriend's good friend was a tax lawyer and explained to me that if I claimed 10% of my overall wages as tips the gov't would leave me alone and they did. Trust me when I say that we relied on our tips, not our wages to survive. I don't know at what point the government started making servers declare all earnings, tips included, but it certainly has something to do with technology and the fact that most consumers don't deal in cash anymore but debit/credit, showing a record of tips given.

When it comes to escorting, I have a numbered co./sole proprietorship and an accountant/small business consultant that has classified me as an entertainer. He explained to me that as long as I file every year on time and pay on time the gov't will leave me alone. Yes, I pay HST even though I technically don't charge clients it, but it's a small price to pay IMO to keep the gov't off my back and is offset by the small portion of wages/earnings that I don't include. He also said that many business owners try to claim silly write offs, another flag for the gov't, which is why I use his long standing, reputable services. As for not stating 100% of what I make, many business owners don't, pocketing the odd cash job here or there. Some even use it for their hobby fund because they can hide it from their SO and the gov't. Every nail salon I know doesn't charge you tax if you pay them cash and JTK has already pointed out other examples. For the record I do claim 100% of my rental property income and my other business income as well.

I feel for anyone who has been audited because I've been told by clients who have that they'll try everything to find something to nail you on because they have to justify the hours, etc. and that if you've been audited once, they'll bug you every 5 years or so, regardless of whether you were wrongfully audited in the first place or not.

As for Absalom, "judge not, lest you be judged".

 

[koreanjames]

Likely yes , he is wrong.

Many small business are incorporated , and in many cases it is much more advantageous tax wise for the corporation to pay out the sole employee-shareholders via an almost tax free dividend compared to what would be a much heavier taxed conventional t4 (sole proprietor).

The corporation would still have to pay full hst and (just like as you if you were a sole proprietor), and the corporation would still pay Corp. Income tax (I believe 12–13%).

It is a far cry from 1/3 of pre-taxed income.

In Jessica’s case , she is definitely properly declaring a signifant amount of income as she is paying hst in quarterly installments; as the hst pay outs demanded by cra is based on he amount of income claimed. If absolutely minimal income is claimed, then cra would only care to get their hst once a year, vs. every few months (or every month) as more income is claimed.

But is he wrong?

Do you declare your income and write a cheque to Ottawa for a third of what you make? Do you remit HST as you should?

 

[koreanjames]

Is Bitcoin income taxable? Because if so I guess I'm a criminal lmao.

100% yes