Hello Everyone, I have a question which might seem absurd but here it is. I recently applied for my PR renewal, I received the card yesterday and applied for it on August 1st. August 21st I did my tax returns for the past three years. For the past two years, I have been working for an employer, I have had a working relationship with the employer in the past. 2 years ago when I started working for the employer again, we decided upon a special arrangement which was that they would pay me cash and I will get extended periods off like 2-3 months every year. This is because my dad has not been well lately, he suffered severely from COVID-19 and was hospitalized for an extended period. Afterwards, his heart issues flared up etc. I have been in Canada for well over 12 years came as a student, became a PR etc and I took a pay decrease just so I can visit my dad more often. Now here is the deal, my employer has been paying me cash, sometimes E-transfer. I declared it as business income on my tax statements as I did not want to get my employer into trouble and also wanted to declare my income and not hide anything from the CRA. I am not collecting any form of benefits etc. In my renewal application, I mentioned that I was employed rather than self-employed. My income is more or less the same, since I got paid cash and sometimes interact transfer, I did my best guestimate on the higher side. Like my salary ranges from 1300-1500 biweekly. My question is would this be an issue down the road, I am thinking of applying for a super visa for my parents but I would have to submit my most recent tax returns, would this amount to misrepresentation ? please advise
Employment Versus Self Employed made a mistake what to do
- Thread starter flowerhorn
- Start date
This won't be misrepresentation from an immigration perspective but how you have declared this income in your tax return could potentially impact your ability to meet LICO for the purposes of applying for a super visa and later for parent PR sponsorship.
Hey Scylla, Thank you so much for taking the time to respond. This is my second post that you have responded to and this means a lot to me that you take out your valuable time to guide us. So, I was paid partially on the books and the rest in cash—basically a 40: 60 ratio. I included the cash income as a whole and classified it as self-employment income. So now I have both employment and self-employment income. I have another side gig as a tutor, but I barely make 5-7k in a good year. I spoke with an accountant who said that as long as I declare my income, it should not be an issue. I would have declared all of it as employment income but my boss might get into trouble with the CRA. I do meet the LICO requirements if my "self-employed"( which is mostly cash payments from my employer) and employment income are both included. I am just concerned with misrepresentation, although it would not amount to material misrepresentation as I omitted the information from my PR renewal file which was approved.
You do realize by your “ boss “ doing this , by paying your wages partly under the company , the other in cash you are being screwed benefit wise ?
If you’re ever laid off your EI eligibility will be wrong , plus you’re coughing up CPP contributions your employer should be paying as self employed
And if that self employment income is over $30k over four calendar quarters you’re on the hook to register for a hst number and collect the GST hat on that self employed portion ? Note it’s over FOUR quarters , not annually .
And if you don’t keep track the Government can do a mandatory registration and you’re on the hook for any hst owed on ANY self employment. Including your tutoring work
Why is the “ boss “ doing this ? In a nutshell he’s evading taxes , and cooking his books
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