Need help with this TAX Problem

[akash06f]

Hey hie everyone i am bit confused by my situation and need help from you guys ....

I landed in to Canada in December 2013 on a student visa.My brother runs a Free lancing kind off technical support for computers from India,so he has

some customers from Canada and USA so he charges them some amount through MY Paypal and the amount comes in my bank account and

the transaction seems to be going high and high means he is doing good business and expanding so on a monthly basis he makes 6000 USD which

comes in my bank account from last 4 months i almost got 25K USD in my bank accountt i was worried as i am on student visa here so i

called immigration and discussed everything with them they said we don't have any problem until and unless you are not working for any Canadian

employer i said OK . and they also replied as whatever freelancing you are doing u can do it from anywhere in the world so that's OK now the

question comes in mind is that whether i have to pay tax for this income which is coming in to my bank account because i did n't have to give any

SIN while dealing with Paypal so it comes from them. SO my question is as its a huge amount which is NOT in SIN still do i have to pay taxes and is

anybody going to question me that from where does this money coming from..Huh

 

[Rosie1957]

First off, any interest that the account earns is taxable to you because the account is in your name.

Second, the fact that all this money is sitting in your account may eventually indeed lead to some questions as to where it's coming from. How is your brother accessing the funds? Because if money from the States and Canada is collecting in this account and then being withdrawn and sent to India, you may eventually attract the attention of FINTRAC, the branch of the government that keeps an eye out for money laundering operations.

Third, why can't your brother open his *own* Paypal account and get out your hair?

 

[akash06f]

OK lets say i tell the CRA(canadian Revenue agency) that i am doing freelancing where i develop software and getting paid for that on my account and whatever i earn from my freelancing i send it to my family in india like my brother and father. and whatever amount is coming from my earning i Am ready to pay taxas for that...sounds good ??????

 

[jes_ON]

i was worried as i am on student visa here so i called immigration and discussed everything with them they said we don't have any problem until and unless you are not working for any Canadian employer i said OK . and they also replied as whatever freelancing you are doing u can do it from anywhere in the world so that's OK ..."

There's a lot of issues, but let's start with this misinformation. Let's assume you are doing the work.

If you are "freelancing," you are self-employed. If you are living in Canada and your clients are in Canada, this definitely requires a work permit. (If none of your clients are in Canada, then you don't need a work permit).

If you are studying in Canada and have an off-campus work permit (essentially an open work permit), you are permitted to work as self-employed (including with Canadian clients).

If you are living in Canada, all worldwide income must be reported to the CRA. If you've never done the bookkeeping and tax returns as a self-employed person, then you are in for a major headache - and a major tax bill.

So, if it really is your brother doing this work, why on earth would you set yourself up for this?

Then, on top of it - as Rosie correctly pointed out - you could draw the attention of those investigating money laundering / financial crimes. Not a pleasant prospect.

Tell your brother to get his own paypal account, unless he wants to pay for your accountant, tax bill, and legal defense...