squipard

Say, for instance you have created, over a years time, about 10 websites. Each one of your website is earning you $50 per month in advertising revenues. You get paid directly to Paypal. Is this money considered income? Since you do not have a business, and are not employed by either your website or the advertising clients, I am wondering if this would be just free and clear money? I am not interested in scamming the government of Canada, but the more money to keep for my children's future is best for me. (as I am sure it is for most!)

dizzychick

yes

SunKing

HINT: There's no such thing as 'free and clear' money.Whether you owe income tax to Canada or the U.S. depends on where the income was derived. In order for you to be remitted cash owed to you for advertising revenues, the advertiser has to account for the payment through the government and you will have to fill out the necessary paperwork before they can start paying you. If they don't then you're both s-crewed.

quizzard123

You are a Canadian resident? Then this is taxable in Canada on the total amount, less any costs involved in earning the income.You may or may not have taxes due in other countries, should they deem you were operating there (internet taxation is a muddy business), but at least if you do, you should be eligible for a foreign tax credit in Canada.Either way, you pay taxes on ALL income, there is no 'free and clear money'.

hobbit

As a Canadian resident, there is very little income that the government does not consider to be taxable. This certainly would not fall in the category of non-tax revenue. As far as hiding revenue, I can think of few ways which would be less obvious. All it would take is an envious ex-friend to blow the whistle. How would you like to spend the summer going to court over a lousy couple of thousand dollars? You would miss the kids' summer that way.