Cash job - eligible to sponsor ?

[alexgomes]

My job pays me via e-transfer to my e-mail, I then deposit that to my bank account. Therefore there's no record to CRA that I am working. However instead of explaining all these in my application I included last 12 months of my bank statement and also an employment letter from my employer, which does mention my annual income and date of employment and that I am still employed. Since CRA doesnt have any record since April 2015(time I got this job) Will I be rejected from being a sponsor? I read some places that even if I've no income I will still be eligible to sponsor. I am just really worried about CRA not knowing my work situation and if this will affect me being a sponsor.

 

[scylla]

You should be fine. Haven't you submitted your 2015 tax return yet? This would be additional proof of income.

 

[alexgomes]

You should be fine. Haven't you submitted your 2015 tax return yet? This would be additional proof of income.

Yes I also submitted my 2015 Notice of assessment that I printed from CRA website. That only shows little income that I used to work at mcDoands earlier 2015. Then I got this job in April 2015 and since this job doesnt deduct tax therefore my notice of assessment doesn't include the income I made after April 2015. Only way to prove my income is that Employment letter and 12 months of bank statement. And I highlighted every 2 weeks of bank deposit that I made

 

[Rob_TO]

My job pays me via e-transfer to my e-mail, I then deposit that to my bank account. Therefore there's no record to CRA that I am working. However instead of explaining all these in my application I included last 12 months of my bank statement and also an employment letter from my employer, which does mention my annual income and date of employment and that I am still employed. Since CRA doesnt have any record since April 2015(time I got this job) Will I be rejected from being a sponsor? I read some places that even if I've no income I will still be eligible to sponsor. I am just really worried about CRA not knowing my work situation and if this will affect me being a sponsor.

You do realize this is tax fraud and if CRA learns of it, you will be audited and face stiff fines/penalties for not reporting your income. If you are telling CIC about the income, not to mention making regular deposits into your bank account, don't be surprised if at some point CRA learns of it as well.

 

[alexgomes]

You do realize this is tax fraud and if CRA learns of it, you will be audited and face stiff fines/penalties for not reporting your income. If you are telling CIC about the income, not to mention making regular deposits into your bank account, don't be surprised if at some point CRA learns of it as well.

Yes, I am aware of that. I talked to my boss about it long time ago. He said at the end of contract he will give me some tax file (e4 or something that I forgot). And that time I would have to start paying all my tax at once. Which is gonna be really bad.

 

[Mightytonewheel]

You do realize this is tax fraud and if CRA learns of it, you will be audited and face stiff fines/penalties for not reporting your income. If you are telling CIC about the income, not to mention making regular deposits into your bank account, don't be surprised if at some point CRA learns of it as well.

I was thinking the same thing.

The sponsorship document checklist requires that you submit a your Notice of Assessment for the most recent year (Part 16) and proof of employment (Part 17).

http://www.cic.gc.ca/english/pdf/kits/forms/IMM5491E.pdf

Unfortunately, the two aren't going to match. So you've got a problem. You'll have to either knowingly under-report your income on your sponsorship application, or accurately report your income on your application and try to explain to CIC why your Notice of Assessment doesn't match it. In the first case, your application may (will?) be denied if CIC learns you were intentionally untruthful in your application. In the second case -- well, I'm not sure how you would pull that off.

The best thing to do is come clean with CRA. Re-file your income taxes, and report the full amount of income your earned in 2015. From what I understand, CRA does not punish people who voluntarily re-file their income tax return with corrections. Of course you'll owe them tax, but I can think of worse things (see above). If you are able to re-file electronically, you should have a new Notice of Assessment available fairly for 2015 available fairly soon. Include this, along with a letter from your employer, in your sponsorship application.

I know this sounds awkward but I think it's much better than the alternatives.

 

[Mightytonewheel]

Yes, I am aware of that. I talked to my boss about it long time ago. He said at the end of contract he will give me some tax file (e4 or something that I forgot). And that time I would have to start paying all my tax at once. Which is gonna be really bad.

It doesn't matter what your boss gave you. You're supposed to report all your income and pay tax on it each year, not at the end of the contract. If your boss doesn't give you a T4, you still have to tell the government what you earned.

 

[scylla]

It doesn't matter what your boss gave you. You're supposed to report all your income and pay tax on it each year, not at the end of the contract. If your boss doesn't give you a T4, you still have to tell the government what you earned.

Yeah - agreed. This is on you - not your boss. You need to restate and resubmit your 2015 return to include your cash income. Go to them before they figure it out and come after you.

 

[Mightytonewheel]

Go to them before they figure it out and come after you.

Or worse -- CIC denies your application and CSA comes after you. They both have computers and I'd be very surprised if they don't share a whole lot of information.

 

[alexgomes]

Or worse -- CIC denies your application and CSA comes after you. They both have computers and I'd be very surprised if they don't share a whole lot of information.

Doing - (RC199 Voluntary Disclosures Program (VDP) Taxpayer Agreement)

and will submit through CRA account. Once new Notice of assessment is available will also submit that to CIC

 

[Mightytonewheel]

Doing - (RC199 Voluntary Disclosures Program (VDP) Taxpayer Agreement)

and will submit through CRA account. Once new Notice of assessment is available will also submit that to CIC

Good call. The VDP program will mean you won't likely have to pay penalties and interest if you disclose the income before CRA susses you out. You can even provide the disclosure to CRA anonymously, to ensure that the information you provide isn't going to get you in any trouble.

I didn't mean to sound harsh, but the consequences of misrepresenting yourself on a PR application could be very serious.

 

[alexgomes]

Good call. The VDP program will mean you won't likely have to pay penalties and interest if you disclose the income before CRA susses you out. You can even provide the disclosure to CRA anonymously, to ensure that the information you provide isn't going to get you in any trouble.

I didn't mean to sound harsh, but the consequences of misrepresenting yourself on a PR application could be very serious.

You scared the shit out of me man. That does sound scarry. I want my wife here. Not get banned on PR application or get any penalties . I hope remaining tax is payable little by little every month from now on. Instead of paying all at once. Because I also have osap $16000 loan and they keep taking $200 every month from my bank account.

 

[alexgomes]

Good call. The VDP program will mean you won't likely have to pay penalties and interest if you disclose the income before CRA susses you out. You can even provide the disclosure to CRA anonymously, to ensure that the information you provide isn't going to get you in any trouble.

I didn't mean to sound harsh, but the consequences of misrepresenting yourself on a PR application could be very serious.

Hey is there a way, I can calculate income tax PROPERLY and accurately, So I went through everything and figured out from July 17 - Dec 30 2015 I made 17,500 that cra doesn't know about. If I could get a proper official income tax calculator then I could figure out how much total tax I'v not paid.

 

[Rob_TO]

Hey is there a way, I can calculate income tax PROPERLY and accurately, So I went through everything and figured out from July 17 - Dec 30 2015 I made 17,500 that cra doesn't know about. If I could get a proper official income tax calculator then I could figure out how much total tax I'v not paid.

How did you do your 2015 taxes? You can just use the same method but recalculate it using this extra income, to see what the new tax owed would be. You can then do a re-assessment directly from the CRA "my account" webpage.

If your new job is paying you via email transfers and not doing any tax/CPP/EI deductions on each payment, perhaps it's more of a contract/self-employed type job? If this is the case then you may also be able to make some deductions against the income you earned (though I'm just guessing here, really it depends on the details of your employment).

 

[canuck_in_uk]

Doing - (RC199 Voluntary Disclosures Program (VDP) Taxpayer Agreement)

and will submit through CRA account. Once new Notice of assessment is available will also submit that to CIC

You don't qualify for a Voluntary Disclosure, as the tax that will be due is less than a year overdue. You just need to submit an amended 2015 return.

Hey is there a way, I can calculate income tax PROPERLY and accurately, So I went through everything and figured out from July 17 - Dec 30 2015 I made 17,500 that cra doesn't know about. If I could get a proper official income tax calculator then I could figure out how much total tax I'v not paid.

If your employer has made no deductions, there will be CPP and EI deductions as well. Google a website called Taxtips; it has a good calculator.