working for cash

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iceberg

iceberg

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Is it legal in Canada to work under the table? (I know it is not if you have government assistance but if you don't)

If not, how come pizza drivers do it.

If yes, can you claim your income on tax return without T4
 
It is against the income tax act to not declare your income every year on your tax return.

It is not illegal to work for cash, rather you are expected to keep track of it and declare it on your taxes.

It is extraordinarily difficult, and likely not worth your trouble, to prove someone has not declared income on income tax return. If you are related to someone and try to "rat" them out to CRA your complaint will be put into the trash can.
 
All earned income in Canada is taxable, and therefore must be reported.
That is the law.
This includes drug dealers, businessmen, everyone.
 
wretchedotis said:
All earned income in Canada is taxable, and therefore must be reported.
That is the law.
This includes drug dealers, businessmen, everyone.
Click to expand...

So if you go to a random guy and build him a boat for low price for $10 000 and it takes you a month, how do you report it without receipt, T4 or any evidence where you earned that money?
 
iceberg said:
So if you go to a random guy and build him a boat for low price for $10 000 and it takes you a month, how do you report it without receipt, T4 or any evidence where you earned that money?
Click to expand...

I thought you just report it?

Voluntary disclosure, when it comes to taxes, we are all honest, especially small business owners and those who work for cash.
 
You don't need to have a receipt to declare income. You are expected to be honest and declare what you make.

Workers compensation boards throughout the country are quite adept at tracking the 'underground' economy. People working for cash and not declaring it have a tendency to live beyond their means and flash their lifestyle around. Very interesting. The income tax act allows inspectors to seize property. It is a very complex but fascinating part of CRA/RCMP. Drug dealers lose their property under this act.
 
iceberg said:
So if you go to a random guy and build him a boat for low price for $10 000 and it takes you a month, how do you report it without receipt, T4 or any evidence where you earned that money?
Click to expand...

You would presumably have a bill or invoice, that was provided to your "customer". When the "customer" paid you, you would presumably receive such payment in some recordable transaction, that has a paper-trail (cheque, transfer, etc). If it was paid cash, you would provide a receipt to the customer.

That would be something on file, that you received $10,000 in income, for that transaction.

As others have stated, it's up to each individual to be able to show, what income they make, if it's questioned. Most people receive a T4, but if you don't, you're still expected to be able to show what you earned. Because if CRA thinks you earned something else, if you don't have proof to show otherwise, CRA always wins.
 
dad2bandm said:
You would presumably have a bill or invoice, that was provided to your "customer". When the "customer" paid you, you would presumably receive such payment in some recordable transaction, that has a paper-trail (cheque, transfer, etc). If it was paid cash, you would provide a receipt to the customer.

That would be something on file, that you received $10,000 in income, for that transaction.

As others have stated, it's up to each individual to be able to show, what income they make, if it's questioned. Most people receive a T4, but if you don't, you're still expected to be able to show what you earned. Because if CRA thinks you earned something else, if you don't have proof to show otherwise, CRA always wins.
Click to expand...

I called CRA and they said as long as you report and pay tax no need for receipts or slips or cheques. And it goes under self employment section
 
...until such time that CRA does want to see them.

You might not have to "file" receipts, slips, etc, but it's best to have the documenation stored, in case they ever question you on the income. Like everything else, document. :-)

FYI, this is especially good advice, being on this forum, as it sounds like you have a high conflict ex, and it's not uncommon for people to have high conflict ex'es give CRA a call, when they want to cause issues.
 
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