Are many eTransfers in a year suspicious?
1Does it matter?
Last edited by dbud on Fri Jan 11, 2019 12:24 pm, edited 5 times in total.
Re: Are many eTransfers in a year suspicious?
3Before I go any further, I just want to say I’m not an accountant, and my reply isn’t professional advice. I also don’t care if you do or do not pay taxes. Just speaking from my own experience. Played online poker for a long time as my only full time source of income. Never reported it, never got audited.
So, transfers over 5k are reported to CRA. Transfers for less are not.
With unreported income, or the suspicion of, the CRA will audit you, which involves looking at your assets and lifestyle, and then they tell you what they assess your income to be, and the onus is on you to prove them wrong, else pay taxes on what they say you earned. Large transactions aren’t enough to go on. I could have 1million+ going in and out and still only end up with only 10k income.
If you rent, instead of owning a house, don’t have expensive cars, aren’t taking vacation trips every month, and aren’t making several transfers of 5k+, then your risk of being audited is very low.
They want to go after people with high value assets because that makes them liquid enough to squeeze some tax dollars out of.
So, transfers over 5k are reported to CRA. Transfers for less are not.
With unreported income, or the suspicion of, the CRA will audit you, which involves looking at your assets and lifestyle, and then they tell you what they assess your income to be, and the onus is on you to prove them wrong, else pay taxes on what they say you earned. Large transactions aren’t enough to go on. I could have 1million+ going in and out and still only end up with only 10k income.
If you rent, instead of owning a house, don’t have expensive cars, aren’t taking vacation trips every month, and aren’t making several transfers of 5k+, then your risk of being audited is very low.
They want to go after people with high value assets because that makes them liquid enough to squeeze some tax dollars out of.
Re: Are many eTransfers in a year suspicious?
4chubber wrote: Thu Dec 27, 2018 12:35 pm Before I go any further, I just want to say I’m not an accountant, and my reply isn’t professional advice. I also don’t care if you do or do not pay taxes. Just speaking from my own experience. Played online poker for a long time as my only full time source of income. Never reported it, never got audited.
So, transfers over 5k are reported to CRA. Transfers for less are not.
With unreported income, or the suspicion of, the CRA will audit you, which involves looking at your assets and lifestyle, and then they tell you what they assess your income to be, and the onus is on you to prove them wrong, else pay taxes on what they say you earned. Large transactions aren’t enough to go on. I could have 1million+ going in and out and still only end up with only 10k income.
If you rent, instead of owning a house, don’t have expensive cars, aren’t taking vacation trips every month, and aren’t making several transfers of 5k+, then your risk of being audited is very low.
They want to go after people with high value assets because that makes them liquid enough to squeeze some tax dollars out of.
This is surprisingly informative.
As a followup question, can access to bank records be obtained by law enforcement? I've been under the impression that unless there's reason to believe I've committed a serious financial crime, they aren't even allowed access to the records.
Re: Are many eTransfers in a year suspicious?
5I personally wouldn’t be putting money earned through sales in my bank account. Leave that shit liquid.
Re: Are many eTransfers in a year suspicious?
6I'm a freelance artist so I have all kinds of weird random bits of money that pop up in my bank account, but it's almost always under $500. If I made a splash of cash from an additional method that might not exactly have been a drawing I just lump it all in as my art income. Was a film extra, nude sketch model, gave a massage, moved a buddy's couch or whatever and got paid cash? In the art income. My income has generally been under 20k, nice and modest. I have no car, I don't take vacations ahahahahaha so funny to think of doing that. I'm so small they could get nothing useful from me and I am letting them tax my income even if it was cash that I didn't HAVE to claim. I'm Chaotic Good, I like the idea of skimping on taxes, but it's the only thing I can ever imagine the Man going after me for so I try to claim all the cash I made as income.NorthernFarmer wrote: Thu Dec 27, 2018 1:00 pm I personally wouldn’t be putting money earned through sales in my bank account. Leave that shit liquid.
That said, I make a point of only giving my friends weed so no one can ever say I was a dealer.
I know that's the kinda sales you mean. Just keep in mind for all us drug users out there there's millions of people who are self-employed with small businesses having all kinds of transfers going through. Because I'm doing e-transfers for art payments and to hire contractors, etc, I have a lot more that go through my account than just greenery purchasing for personal use and gifting. I don't think it's suspicious at all.Re: Are many eTransfers in a year suspicious?
7Correct me if I'm wrong, but selling event tickets above face value is illegal on the books but businesses seem to get away with this through a service/convenience charge.
With this in mind, again, not a lawyer and only speaking hypothetically, you perhaps are gifting your weed but with a delivery fee? or weed is free but the bag is not?
I am curious at how this plays out.
With this in mind, again, not a lawyer and only speaking hypothetically, you perhaps are gifting your weed but with a delivery fee? or weed is free but the bag is not?
I am curious at how this plays out.
Re: Are many eTransfers in a year suspicious?
8+1 as a client of any major bank / financial institution
You have the privacy and right to do what you want with your money.
Period.