Money Question

[tboy]

Sure, you can buy a $5,000 Sunfire with cash at Tony's Used Car Emporium. Try doing a $60,000 deal at BMW...



Wow, you have lot of faith/respect for the CRA. They are no where near that sophisticated. You also forget that CRA is a federal agency and transportation is provincial. Totally different jurisdictions and totally different information systems.

Or an $80K F-350 Pickup........

You also fail to notice that we pay provincial AND federal income taxes therefore the systems must be interlinked at some level. Or are you assuming that if the provincial income tax system found discrepancies that they would just say "oh screw the feds, we'll keep this info to ourselves"?

So hey, to the OP, Sukdeep says go buy whatever you want and no one will be the wiser......

 

[Barca]

Buy a new suit.
You need to look presentable in court when they read out the charges.

These are the folks that will get you.
http://www.fintrac-canafe.gc.ca/fintrac-canafe/1-eng.asp

CRA is second string, if anything is left over from the first round.

Keep in mind that once you are on the radar screen of LE that all your assets are subject to seizure and forfeit as proceeds of crime to a civil standard (balance of probabilities) not a criminal standard (beyond a reasonable doubt), and you do not have to even be convicted or charged with any criminal offence.

All it takes is a balance of probabilities that your assets where from an illegal source. (For those playing the home game this is in Ontario only)

As for giving you advice on how to break the law, I'll pass.

Tbag don't quit your day job, as an estate lawyer you are not quite ready to be giving advice.

As mentioned no inheritance tax in Canada.
Probate fees to the province with ways to legally avoid if there is proper estate planning up front.
Capital gains can be triggered when the estate sells an assets (e.g. a stock or an investment property), but again proper advance planning through corporations and trusts can greatly reduce or eliminate most of this.

Just found this thread. This is an excellent response.

And by the way...one of the reasons why some people choose to use financial advisors, many of which work for institutions that work closely with trusts that do much of this work (estate planning) for you.

Having been an executor at one point (what a pain!) I found out after the fact that some institutions offer themselves as corporate executors for a fee, which I would have gladly paid believe me.

 

[RonaldMcFondled]

sorry if this has already been posted, too lazy to read all the threads,

a deposit of a instant 10k will instantly put you on the radar

 

[Peter123]

Hypothetically if I were in that kind of shoes--and didn't want whomever knowing about the cash (very well could be an ex-wife!) what I would do would be to get a safety deposit box at the bank, put most of it in (now nice and safe) keep a few grand in cash with me...use it slowly for whatever expenses that cash is typical (groceries, restaurants, booze, etc) and have some fun with it (gamble, sps)....

but I would do it at a rate that isn't a large % of my income...cause that is what will ring the bells at CRA--its called a lifestyle audit....officially you are making 40K a year, yet you are spending 80K a year---just not sustainable...so where is the cash coming from...and there is reverse onus--you have to prove how you are doing it or your guilty....

 

[Serpent]

Hypothetically if I were in that kind of shoes--and didn't want whomever knowing about the cash (very well could be an ex-wife!) what I would do would be to get a safety deposit box at the bank, put most of it in (now nice and safe) keep a few grand in cash with me...use it slowly for whatever expenses that cash is typical (groceries, restaurants, booze, etc) and have some fun with it (gamble, sps)....

but I would do it at a rate that isn't a large % of my income...cause that is what will ring the bells at CRA--its called a lifestyle audit....officially you are making 40K a year, yet you are spending 80K a year---just not sustainable...so where is the cash coming from...and there is reverse onus--you have to prove how you are doing it or your guilty....

Curious. How does a "lifestyle audit" get triggered? And keep in mind for example in teh sex trade, a lot of cash earners never file taxes so the CRA has nothing on them -- not their SIN even.

 

[Serpent]

Oooh, I haven't heard of 'lifestyle' audit. Unless you live like a Duke, I'd hazard to guess that it'd be difficult to audit or discover.

I have heard of net worth assessments (when you report $40k in income but live in Rosedale) which is more obvious to discover or audit.

http://www.businessweek.com/1997/05/b3512138.htm

Same thing.

 

[anon1]

I've heard of a guy in Europe who had to transfer a large amount of money out of Europe so he bought a very valuable postage stamp...put in his shirt pocket ..went to another country and sold it there...no idea if it was true just a story I heard...

That was the premise of a Hitchcock film "Charade" with Cary Grant and Audrey Hepburn.

 

[tboy]

In Ontario the Federal government collects all the income tax both federal and provincial and then gives the province their piece of the pie. At the end of the year you receive, or pay, only one amount to the Receiver General.

The idea was to have a single system to monitor and collect thereby and saving overhead costs. Your provincial income tax return is filed with your federal all as one package. There is only ONE system, nothing to interlink.

Ontario is considering the same idea with harmonizing the GST and PST as has been done in other provinces. Having a single HST with a single federal department that does all the collection. But a LOT of issues come with that change leaving aside the politics.

Good response, but you also have to figure that the provincial governments have some sort of record of what we pay in provincial taxes. I can't see the feds just saying: here's a cheque for x billion dollars to cover all your citizen's income tax. There has to be some accounting because I can't see any province saying: hey are you sure? is that the correct amount? The feds say: ummm yeah....

 

[red]

I'm not so sure.

Ever read about Americans winning the Powerball lotteries and how those are paid over 20 years, then after tax, they get so much?

I think Americans pay income tax on windfalls.

Therefore, even tourists in Vegas have U.S. taxes withheld on their casino winnings (because they do it across the board), only to get them refunded by filling out certain U.S. tax forms because they are foreign nationals and not U.S. citizens.

huh? i am talking about Canada man.

 

[Mencken]

Something about this whole thread...a lot of strange non communication going on.

But, to the original post...something about that too. I don't think this is the place to get advice on whatever illegal thing it is you want to do...whether dodging income tax, or proceeds of crime.

Otherwise you don't have a problem...just walk into the bank and fill out whatever forms are necessary and deposit the money.

 

[Master Muse]

Hide the money

Please don't deposit your wages and live on what? Nope. Do nothing different except put the money into a safe deposit box. Then, pay cash for operating expenses, pay off debt with your paycheck and when that's done, breathe easy. Start a savings/investment account and put the prior debt service amount into that each month. SAVE he money in the box. Use some to hobby or go on holiday but SAVE most of it as it's tough to do that. Lots of repairs can be paid for in cash btw w/o any flags: car repair, home maintenance the dentist etc. The tradespeople love it too as they don't report it as income. Restaurant bills paid in cash are absolutely untrackable. It's easy; you should be too.

 

[zekestone]

Like many others, I say put the money in a safety deposit box and just draw on it to pay the credit card and maybe use it as your stripper/escort/bar fund.

 

[The Options Menu]

to tboy:

As somebody with some short and very dated experience-- It's safe to say that the linkages government databases in any one level of government, and between any levels of government were and probably are pretty bad. That's compounded by privacy rules that are pretty strict about data sharing. Also, most Providences basically do take the Fed's word for it. Mature Constitutional Democracy and all of that...

The big red flag for the CRA is usually a self inflicted from your consolidated tax filing...

On to the OP. Strictly hypothetically speaking:
-Stay under the 10K limit, banks generally aren't keen on trying to ship their customers to the CRA / Police. This is especially true when it's money going in, not money going out. (Pot dealers taught me that.)
-Open account at more than one of the big 6 banks, make a largish but under 10K initial deposit, and smaller deposits regularly. (The I'm pretty sure CRA has to subpoena bank records, and if it gets to that you're already fucked.)
-Look into Credit Unions. There are a bunch of different rules for them. (The Canadian Documentary, "My Student Loan" taught me that.)
-Divide your near maximum RRSP, RESP, and tax free savings amount by 12. Deposit that each month. Please note you get a tax form for these, so keep it plausible.
-Avoid unjustifiable living expense increases.
-Put what you can't ferret away mostly in a safety deposit box, and if you have a secure place for a safe you might want to put a healthy whack in one of those cause the government can get to that safety deposit box box.
-Buy mid range purchases in cash. (Laptop, electronics, etc.)

-GO HAVE A PARTY FEATURING AS MUCH GREY AND BLACK MARKET SHIT AS YOU CAN MUSTER. YOU KNOW THEY AREN'T REPORTING YOUR ASS

 

[Peter123]

Usually by...

Curious. How does a "lifestyle audit" get triggered? And keep in mind for example in teh sex trade, a lot of cash earners never file taxes so the CRA has nothing on them -- not their SIN even.

either your neighbours, ex-wife, coworker...who see what you are up to and can't figure out the math

or cops, etc who "know" you are doing something illegal, can't prove that thing, so the get the "Feds" on to you so they nail you that way...

a couple of times the conversation with SPs has gone done this path, and I certainly recommend to them that they declare at least some of their income for income tax purposes, because having zero income will make you an obvious and easy target...

and yep basically how they got Capone...

 

[Peter123]

What's an ED?

I recommended to one ED, unofficially of course & hypothetically, that IF she under reported her income, that could raise a flag, especially if as a result, she can't explain how she bought a condo or other large purchase, or reconcile how she made so much investment income.

I know CRA has targeted employees of auto dealers in the past (they got nailed for taxable benefits on driving employer-owned demos to and from work). I'm not aware of same for the AE industry but it probably would be difficult to do unless they legislate mandatory licensing in all jurisdictions that is linked to the feds.

as for getting those in adult entertainment--well anyone in a MP or works for a service--pretty easy for CRA to go in and find out who they really are and check their records

Indies...yeah of course a little more difficult....but all it would take is someone to tip them off...or a disgruntled client even....

 

[Peter123]

Still not sure what an ED is

If they are not licenced freelance EDs for example, they'd be under the CRA radar.

but almost no one is totally under CRA's radar...if you eat, have a roof over your head, drive a car, and have any kind of business relationships you can be on their radar...just takes one phone call...no different than reno guys working under the table

now sure I guess some people fall completely "off the grid" but they are not providing any service hobbyists would be interested in!

 

[Serpent]

but almost no one is totally under CRA's radar...if you eat, have a roof over your head, drive a car, and have any kind of business relationships you can be on their radar...just takes one phone call...no different than reno guys working under the table

now sure I guess some people fall completely "off the grid" but they are not providing any service hobbyists would be interested in!

ED = Exotic Dancer.

Not "totally under radar" but when EDs dont even file their returns, the CRA has no clue they exist.

It'd take something to trigger a "lifestyle audit" -- paying more than 10k at the dealership for the new bmw. Juggling large cash amounts at the bank. Making significant wire transfers.

However, I am not sure how intense this system is in Canada. In the US, after the Patriot Act, you can't take a financial shit without the government knowing about it.

 

[Peter123]

dancers? but don't they get paid by the clubs? therefore there is a business realtionship...therefore paperwork

and again--complaints, tips, ratting...that will get you on the radar

 

[Moraff]

ED = Exotic Dancer.

Not "totally under radar" but when EDs dont even file their returns, the CRA has no clue they exist.

It'd take something to trigger a "lifestyle audit" -- paying more than 10k at the dealership for the new bmw. Juggling large cash amounts at the bank. Making significant wire transfers.

In addition to those triggers already mentioned there are also certain number of random audits done each year (probably whatever excess time is left after dealing with the red flags/complaint driven ones).

But it can also happen that someone connected to you gets audited and you may draw an audit also because of that.....

 

[Serpent]

In addition to those triggers already mentioned there are also certain number of random audits done each year (probably whatever excess time is left after dealing with the red flags/complaint driven ones).

But it can also happen that someone connected to you gets audited and you may draw an audit also because of that.....

Fair enough.

I think when dancers start buying condos and homes while not filing taxes or underreporting, that's when they open themselves upto scrutiny.

But hey, if you can keep getting away with it, more power to ya.