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  • Barter income

    Hi everyone,

    Can someone direct me to some case law on how to prove cash and barter income?

    My ex wife works in an industry where bartering for services/goods is quite common and she doesn't declare this as income even though it's for personal use while her business writes off the entire expense. This is not for a small servi ce exchange here or there but barters worth tens of thousands of dollars via "credits" or promises of a future good.

    Thank you

  • #2
    I have never seen case law for this. You would need to look at cash payments or self employed income. Plus you would have to prove this is how she operates. If she takes in kind payments (food, free rent etc.) you may not be able to claim an income. Your best bet would be to argue for imputation based on what something she does costs on the open market.

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    • #3
      Try to get the CRA to declare it income. If you do, you win.

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      • #4
        Originally posted by rockscan View Post
        I have never seen case law for this. You would need to look at cash payments or self employed income. Plus you would have to prove this is how she operates. If she takes in kind payments (food, free rent etc.) you may not be able to claim an income. Your best bet would be to argue for imputation based on what something she does costs on the open market.
        Hi rockscan,

        What do you mean by "in kind payments"?

        The problem is she isn't receiving cash. She is receiving services or gift certificates or a "credit" on a file.

        My plan is to have her inputed with income but she's very sneaky about it. I didn't know this during the time we were married since she told me "barter income" is not taxed but based on my research it looks it should be. It looks like she has been evading paying taxes on barter income for 10+ years.

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        • #5
          Originally posted by cleanSlate View Post
          Try to get the CRA to declare it income. If you do, you win.
          What would I need to do to get the CRA to look into her previous income? I genuinely didn't know she was evading taxes. This is all news to me. I believe at some point she was receiving EI but since she was getting paid for in barters there is no trace of official cash money being given to her.

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          • #6
            Originally posted by jackandjill2000 View Post
            Hi rockscan,

            What do you mean by "in kind payments"?

            The problem is she isn't receiving cash. She is receiving services or gift certificates or a "credit" on a file.

            My plan is to have her inputed with income but she's very sneaky about it. I didn't know this during the time we were married since she told me "barter income" is not taxed but based on my research it looks it should be. It looks like she has been evading paying taxes on barter income for 10+ years.

            In kind is not cash. Which is what she is getting. You would need to prove that she could be paid for her work and what that pay would be. That would be done by researching other similar jobs and what the pay is. Either through a job board or an employment type organization.

            This is a battle though. The onus is on you to prove she could be paid. The prevailing case is Drygala for purposely under employed. Plus, if she did it while you were married, it could be seen as you accepted it.


            Sent from my iPhone using Tapatalk

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            • #7
              here is a link to info for the CRA snitch line:

              https://www.canada.ca/en/revenue-age...-overview.html

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              • #8
                Originally posted by rockscan View Post
                This is a battle though. The onus is on you to prove she could be paid. The prevailing case is Drygala for purposely under employed.
                If it's an industry common to bartering, then it shouldn't be hard to show it's being done. Similar to proving unemployment.

                The onus is on ex to prove why it shouldn't be counted as income, even though family court says it is.

                Comment

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