I am a Canadian resident, not a business. Here it goes, I am almost ready for my first payment from Google. According to the Google FAQ, since I am not a US resident I am not required to pay any US tax, but do I have to pay the Canadian gov? Anyone with this situation?
In Canada you are supposed to include all worldwide income, including Adsense, on your Income Tax Return. Some people cheat on their taxes and gamble that they won't get audited.
I'm singing the same tune as the poster above. You *must* claim all worldwide income in your tax return. Revenue Canada wants a peice of every pie.
I'm thinking it might be best to go to a tax consultant, atleast that's what I'm going to do, I'm horrible with taxes.
Standard Disclaimer - If you are unsure check with an accountant. Basically what you need to do is claim it as self employment income along with any expenses (like hosting, supplies, etc..). Not hard to do especially if you use Quick Tax.
When you disclose adsense as income then you can claim hosting fees, linking fees and other expenses you incurred for advertising and promoting your site.