Taxpayer Alert – Paid in cash? Report your income!

Share it with your friends Like

Thanks! Share it with your friends!

Close

The following is now available on the CRA Web site:

The Canada Revenue Agency (CRA) reminds Canadians that they must report all of their income. Individuals working in industries where cash transactions are prevalent must take extra care to accurately report their income and to maintain the documentation they need to support the income they report.

The CRA continues to vigorously enforce the provisions of the tax laws to ensure that all Canadians pay their taxes. This provides a level playing field for all taxpayers and protects the social and economic well-being of all Canadians.

The CRA can find unreported income.

The CRA has employees dedicated to finding unreported income and ensuring that taxes are paid, even when cash transactions are involved and proper records are not kept. CRA auditors and investigators can:

* Undertake audits that examine the net worth or lifestyle of a taxpayer to determine if tax laws have been broken when a person seems to be living beyond their means;
* Compare an individual’s reported income or expenses to industry or regional averages;
* Follow-up on leads received from informants, enforcement agencies, and other tax authorities; and
* Compare the information on tax returns to information received from third-parties, such as employers.

Come to us before we come to you.

The CRA has a Voluntary Disclosures Program available to taxpayers who want to correct their tax affairs before we begin any audit action. If you make a full disclosure before any compliance action is started, you may only have to pay the taxes owing plus interest, but not the penalties. Visit www.cra.gc.ca for more information.

Related documents and publications
* Fact Sheet: Cash income is taxable
* The Underground Economy: Know the Facts
* Will you do it for cash? – RC4406

Comments

Write a comment

*

*