Taxable amount for money from foreign investment

[9145]

I have a friend who has a Canadian PR. Couple friends of his who are in work permit intent to start a business with around 120k through foreign investors. They are approaching my friend to receive part of the money from the foreign national (whom my friend does not know) to evade taxes. I believe this is illegal if there is a taxation for the amount. Is it possible for someone knowledgeable to give me information, links or reference to textbooks regarding how much of 120k is taxed, is it possible to evade taxes by divvying it up through a bunch of friends, if things raise a flag what consequences will my friend face.
Out of curiosity: what are some of the tax evading ways that people have come up with in Canada ? I know people own shell corporations in Canada that could be bought online for not paying the exact taxes for their salaries, expenses and such.

 

[canuck78]

I have a friend who has a Canadian PR. Couple friends of his who are in work permit intent to start a business with around 120k through foreign investors. They are approaching my friend to receive part of the money from the foreign national (whom my friend does not know) to evade taxes. I believe this is illegal if there is a taxation for the amount. Is it possible for someone knowledgeable to give me information, links or reference to textbooks regarding how much of 120k is taxed, is it possible to evade taxes by divvying it up through a bunch of friends, if things raise a flag what consequences will my friend face.
Out of curiosity: what are some of the tax evading ways that people have come up with in Canada ? I know people own shell corporations in Canada that could be bought online for not paying the exact taxes for their salaries, expenses and such.

Your friend should not receive money from someone he doesn’t know. He will be responsible if something criminal or sketchy is going on. I assume they are trying to recruit people to receive less than 10k so they will not be flagged by fintrac and have to show where the money has come from. He should politely decline and say that he is not comfortable getting involved because it is not his money or business.

 

[9145]

Your friend should not receive money from someone he doesn’t know. He will be responsible if something criminal or sketchy is going on. I assume they are trying to recruit people to receive less than 10k so they will not be flagged by fintrac and have to show where the money has come from. He should politely decline and say that he is not comfortable getting involved because it is not his money or business.

Not very sure it would be just below 10k. Those guys said to him because he is a PR, having money in large amounts won't affect him. Those friends of his also said they are consulting with lawyers and a business consultant about the same matter, so there is nothing to worry about. Is it possible for them in work permit to even register a business, they have to have a Canadian resident on board for it, right. If they take less than 10k through different accounts, it won't be flagged by fintrac ? I don't know much about these stuff. I also said the same about receiving money from unknown people. Do you know about the taxable percentage, and won't they be taxed eventually for the money they spend for business (how would they hide it) ? Having facts would help me present my case in a more credible manner. Have you heard/read about other ways people aggressively evade taxes ?

 

[canuck78]

Not very sure it would be just below 10k. Those guys said to him because he is a PR, having money in large amounts won't affect him. Those friends of his also said they are consulting with lawyers and a business consultant about the same matter, so there is nothing to worry about. Is it possible for them in work permit to even register a business, they have to have a Canadian resident on board for it, right. If they take less than 10k through different accounts, it won't be flagged by fintrac ? I don't know much about these stuff. I also said the same about receiving money from unknown people. Do you know about the taxable percentage, and won't they be taxed eventually for the money they spend for business (how would they hide it) ? Having facts would help me present my case in a more credible manner. Have you heard/read about other ways people aggressively evade taxes ?

The money will still be flagged even if he is a PR or citizen. Blindly trusting people and allowing them to transfer money through you could get you in a lot of trouble. This is an incredibly bad idea.

 

[Sirius1]

Not very sure it would be just below 10k. Those guys said to him because he is a PR, having money in large amounts won't affect him. Those friends of his also said they are consulting with lawyers and a business consultant about the same matter, so there is nothing to worry about. Is it possible for them in work permit to even register a business, they have to have a Canadian resident on board for it, right. If they take less than 10k through different accounts, it won't be flagged by fintrac ? I don't know much about these stuff. I also said the same about receiving money from unknown people. Do you know about the taxable percentage, and won't they be taxed eventually for the money they spend for business (how would they hide it) ? Having facts would help me present my case in a more credible manner. Have you heard/read about other ways people aggressively evade taxes ?

Registering a business or having a large amount of money do not require PR. They can register a company using their Work Permit. Their justification makes it even more phishy. My advice, tell your friend to stay away from such transactions