An old client told me about a girl he used to see that this happened to years back , it opened my eyes , It does happen so its important to have an accountant that knows what she/ he is doing. I also have been told nerver talk about Politics, Religion, and Money is the 3rd I think . It just causes problems for the most part. Somethings are better kept private. I shared personal things with some clients I should not have and when the decided to get digrunted they can play little games its best to stick with just being a good escort and keep other matters between your bank, your accountant, investors ( real ones) I was fooled once by a fake one who I trusted who came as a client trying to help.How does the CRA end up catching an escort who does the majority of her business in cash; rents; and has no other assets to speak of and doesn't file a T1 Return?
I understand the aspect of if you don't declare your income to the tax man you can't get a loan from the banker. I would think the only way the CRA would know is if a disgruntled person went online here:
Reporting suspected tax or benefit cheating in Canada – Overview - Canada.ca
and filed one of these.
I know the CRA can also send letters "Demanding to File" and can also do "Arbitrary Assessments" where they complete the T1 Return(s) themselves and send a bill to the person, which is treated as correct until the person files the missing returns and CRA accepts them.
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