Freelance work while on a closed work permit

[agoul31]

I’m thinking of doing some freelance work for some purely U.S. based clients. I would be getting paid in USD into my Canadian account. They are not corporations, just regular individual people.

I am currently on a closed work permit in Canada with my employer.

1) Is it legal for me to do this work?
2) If so, how do I claim this in taxes

 

[Copingwithlife]

It’s under other income not supported by a T slip . You file a T2125 Business Professional income to report it . It gets added to your total income, you pay taxes off the total . If it’s allowed or not that’s up to the IRCC. Revenue Canada’s mandate is too collect the taxes owed to the Crown, regardless whether the activity is legal or not .
Note if the amount is over $30k in Canadian funds , calculated over four rolling calendar quarters then you’d be mandated to register for a BN , even though you wouldn’t collect GST HST on the funds since it’s zero rated , funds sourced outside the country
RC4022
You still must register, and it’s your responsibility to calculate the four rolling calendar quarters

 

[Taran D]

I’m thinking of doing some freelance work for some purely U.S. based clients. I would be getting paid in USD into my Canadian account. They are not corporations, just regular individual people.

I am currently on a closed work permit in Canada with my employer.

1) Is it legal for me to do this work?
2) If so, how do I claim this in taxes

I think it might be a problem. Does your work permit mentions your employer's name, if yes you have to stick with them. As in that case there are specified hours which more often turns out to be full time, so how would you explain doing other job. Though I maybe wrong. Hope this helps.

 

[ssyolchuyev]

@agoul31
Did you find any reliable answer to your question?