I need some advice... I have a business partner who sends me around $30,000 monthly... He sends me cheques which go into my bank account and I have to pay tax on them. He lives in a different province than me (I live in Ontario, Canada he lives in New Brunswick Canada). If I were to fly to his place, get the money in cash instead of cheques, would that be a possible way of lowering the amount of tax I pay? I have to pay a lot! My only concern is, when I'm flying with a briefcase full of money, I might get questioned by the authorities. Is there a better way for him to send me the money without it being traceable by the government? Cash cheques? Money orders? I know this sounds like it's from a James Bond movie... but man, I hate paying 22.5% tax that businesses have to pay here.
Have you thought instead of 22.5% tax, that u just drive there, or take a taxi service? It would cost lots , but there should be no problems... Also a wire transfer? Flying money, you have to pay more money lol so that is not a good idea. I suggest just take a taxi, and take a few people with you for safety.. Overall you spend about 100$ or 200$, but thats better than 20% of 30k
I'd spend part of that $30,000 a month on a good tax lawyer. It would be cheaper than air fare. If you have a legitimate business it would be hard to hide $30,000/month.
Where I live, I paid 45% in tax's last year, and thats with a good Tax Attorney. Personally, my suggestion is simple. Open an account in the Cayman Island's or Switzerland, and have most of the money wired there. Take what you need to live on and move the rest off shore. Just my personal opinion on the matter.
I tend to agree. I know the Tax authorities in the US are very strict and carry firearm and such, I suppose it's something similar in Canada? Then why risk yourself when you can do that wisely. I am sure you can hire a top notch lawyer when you earn 30 grand a month.
Paying tax can suck, but you've got to consider why we pay taxes. Also getting caught is going to suck more.
Don't take 30K on a plane, that is just asking for trouble. Drive the money or hire someone if you want to avoid the authorities.
I have carried over 30k on a plane several times. Its really not that big of an issue. If its all $100.00 bills then you prolly will not even get noticed. I personally carry two wallets, one looks like a check wallet I put money in both. If you are not crossing a country line then you shouldn't have issues. I own a small biz to where I buy raw commodities, so if I ever get caught that is my out. Of course I do pay taxes on this income.
I would not even think of carrying that amount of cash. What would happen if you got mugged. I would stick with the check.
You don't want to get caught hiding money to avoid taxes. You would have to cover the entire paper trail of where the money came from, and then that opens you and your business partner to conspiracy charges as well. In the U.S those are very hefty charges and will land you in jail...for a while. You need professional advice from financial planner and tax attorney, not us. You certainly don't want to "traffic" that money, if you get caught...more charges.
Thanks guys for the suggestions. I will run the two ideas of driving there or moving the money off shore... by my tax attorney and see what he has to say on the matter. Driving there will take almost 14 hours one way
There is no reason at all that you can't carry $30k wherever you want to in Canada. Just don't cross the border, and if you do, declare it. There's nothing wrong or shady about it at all.
Even if you are paid in cash, the person who "paid" you will report it on his own taxes simply because of the amount.. So you won't get very far tax wise trying to hide it.. Pay your taxes..
Paying 22.5% is not that bad. We have to pay a flat rate of 30% for business tax in Australia! Personal income tax is up to 45%! Pay your tax if you don't want to get into trouble.
Isnt there a limit on the amount of cash your allowed to travel with? Like one member said trafficing money can lead to a fine?
You can travel with a billion dollars if you want to. Just report it at the borders. How could the government tell you that you can't travel with your money. Hell, you can burn it if you want to. But if you choose to travel with cash, you simply have to report it at international borders. Real simple.
You can fly with $30,000 cash within Canada but have a plausible explanation if the screeners ask why you have it. Don't tell them "it's none of your business". You may be legally correct but it could make you taken to a back room & missing your flight.
If you are trying to evade tax authorities maybe discussing details in a forum is not such a hot idea.