Any Canadians out there ? As the title says, I am wondering how do you handle TAX. I get direct deposit to my bank. I am sure it all depends on how much you make. I am not making much, but a (so far) 100 - 500 a month (depends on the month, sometimes it's only 150 in 2 months) regular deposits with 'GOOGLE' (showing up in these dreadful bold letters) will get noticed one day I think. What do you think ? As you can imagine, I don't want to pay tax on this. I use this money for non-profit activities, like having my website (non-profit, educational) running. To pay any $$ to the government here is not an option for me. And yeah, sorry if I am posting in the wron forum, but I have seen the finances discussed here before (including past prominent members). Cheers!
Yeah if youre making too much I would worry about it but if it's only a little I wouldn't worry. I'd check the Cdn Govt. website. I'm Canadian too, but I make under a 100 a month so far...
Thanks 3eamus. I think you are right, if we talked about thousands of $$ (even 1), I think there would be a trouble, because it would equal to basic wage full time job. This month I will probably make about 500 canadian, so this is like a good part-time job. Too bad Google doesn't have the PayPal option... But yeah, even with 500 I think I am not in the red.
I think no one wants to pay tax but that doesn't mean that you are not obliged by law. The fact that you are not making money or don't want to make money doesn't mean that you are non-profit organization. You need to have a non-profit organization status and you need to be incorporated to do so. The money that you make online is attached to your personal income unless you are incorporated. So, if you're salary is 30 000$/year for example and you're online activities are 3000$/per year then your personal income is 33 000$ and you pay tax within that tax bracket. If the tax bracket is 35% for both federal and provincial then you will need to pay 35% of 3000. The important thing is to keep and declare your expenses so that you don't have to pay tax on the full 3000$. For example: 3000$-500$(expenses)=2500$ x35%= 875$ in taxes for your online activity. (excuse me if the equation is brutal). Your tax bracket may change by minusing the expenses, but I'm just giving you a simple example. It's up to you to declare the money to the government. If you don't it may come to haunt you one day. The best thing to do is get together with an accountant and get the details from him.
I agree with the previous post concerning "too bad". You have to create a non-profit entity and have that entity earn the revenue instead of yourself. Or, at least have that entity billed, such that if you pay those bills you may be able to claim a deducation. If you don't declare your income you can get spanked.
Thanks chabbs. Good and straight forward answer. I know the tax thing is a matter of declaring, I just wondered if the bank will do that 'job' for me. (you know what I mean). I'd have no problem with such, except for the cirumstances (can't go into that further), taxing me on the service I do would be basically blood money. I have also few issues with how the tax money is spent - I am talking about BC here, where hundreds of millions of tax dollars are wasted by the government and people/institutions are never accounted for it. Well... one option for me would be to shut down the public servise I provide world-wide (making BC and canada famous by the way - for which I get nothing and no support). So, what makes more sense ? ... I'd prefer to be an 'outlaw' (what a joke to use it in such context, LOL), than shut the service that assists and help thousends of people every month and leave the problem unsolved. i'd have still no problem giving away a bit if I was making way more, but with my 'educationl' unpopular keyword, my website can never be of a bread winner. The guys who target ringtones, lawyers, mortgage themes are those who make $$, and many of them probably would take that 35% of what I made ! LOL And for what.
Well, another way to look at this is this: I don't think having a hobby is taxable. It does seem to be if someone starts making money with it - which I find a BIG BULL. If a venture starts as a business, then yep - tax them. But if someone has a hobby and happen to find a way to support it - taugh luck for the taxman, especially if the venue is a public service. 'Inc.' - I am light yeaqrs from reaching that level, and GST # of non-profit is not in my reach eaithr, it is actually quite difficult to get it, and with all the redtape etc. unrealistic - why would I give up years of my work to a fictious organization ? Am I making a sense ? - or tell me otherwise.. Anyway.. thanks you guys - you all have good points
I completely understand your thinking on this issue, But, you are dead wrong. You are breaking the law. Income from all sources, including hobbies, is taxable in Canada. Not making what you do think you are profiyable and you believe you are offering an "educational" service does not mean you are a charitable entity. And not making a profit does not make you a non-profit. It makes you non-profitable. As mentioned by other posters, you need to apply for charitable and/or non-profit organization status. However, as long as the money from the ads is going into your personal account and not into the accounts of a "registered charity" then it is your income. To be honest with you, you need to change your view and look at this as a business. If it is operating from your residence than there are real advantages to registering as a sole proprietor business. Tax accountants call it the best tax avoidance mechanism available to individual Canadians and some assert all citizens should have a small business running from their homes. If you operate the business from a designated space in your residence, then you get to measure off that space and figure out thee percentage of space used for the business. This allows you to deduct as a business expense that percentage share of rent or interest on your mortgage; utilities; property taxes; the full cost of hosting your website. You should be able to deduct the full cost of your online connection, ince you primarily use the internet for research and communicating with your users. Businesses use computers and a whole host of other goodies in their operation. These are legitimate business expenses and are charged against revenue. None of these deductions can be applied against your salary. You do not need a GST number. Especially since Google is your main customer and you cannot charge them GST. Not having it means you cannot claim back and GST paid on business expenses. However, you can claim any GST paid on business expenses as a taxable expense. I made less revenue the first year we ran our business than I made in a week at the office. We ended up with a loss after our allowed deductions, which meant we paid no taxes on the business income earned and had a carry forward loss into the next year's business income.
Thanks clancey. Many good points. Oh well, seems I getting more pointers here pointing towards the dark side of the tunnel than the bright one ! lol At least thats the way i see it. Seems like it is easier to give up on trying to make anything out of your life or helping fellow 'earth-members', than doing it and having to deal with papers and faceless bierurocrats taking half of your efforts (which they use for dinners and golf self-endulging ventures). That's how I see it - f'lock'k me if I am wrong... Anyway... geeez... don't know what tosay... I feel almost like a criminal in the the light of what you told me already.. does it come down to being one by trying to to provide a good education and public service ? If it does - then my answer is simple - the taxman will never see any of my money. That's a given.
Thanks for the answers! basically I wanted to know if I will have to declare the tax or the banks will do it, issue statement, automaically Cheers !
Yeah, I guess best thing is to talk to an accountant. Considering having also stating my 'business expenses', it actually might work oput well. Thanks.
I just found this post about taxes: http://forums.digitalpoint.com/showthread.php?t=69408 Interesting.. According to this declaring few hundred dollars is silly, sort of like you'd declare fifty bucks you got from your grandma for cleaning her windows, lol Also, I don't think cabbies or weitresses declare their tip either. So, what's the line between a hobby and a business ?
Canadian Citizen are bound to pay World Income. I don't suggest hiding your earnings..Always better to be straight.
I gave 20 bucks to my kid for washing my car. Should he pay tax on it or should I give him 10 and send the other 10 directly to the government ? LOL
BTW, I am not even in Canada now, but might be comming there soon, so I wondered. And the accountants role has always been to save money to his client, let it be private business, charity, a corporation or government institution. So... the suggestion : 'just pay tax!' does not help me much here. I guess I will have to visit an accountant for the right answers when I get there. Thanks all who have written ! I guess we can call this hread closed
lol....hide what you can, if you can. Anything small I have made under my name and don't declare....I get enough business taxes, what's the point of paying them more I would suggest declaring any big payments (in the $1000 or more) through business tax....as they always seems get you if you don't. But it's not worth declaring every single small affiliate cheque you make....it cost you more money in taxes and wasted time in accounting.