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Canadian Internet Marketer - Quick Question

by Kinng
6 replies
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Hey, folks!

I have a quick question to ask. I live in Canada and I am a new internet marketer. I get checks from Clickbank and Google AdSense. My question is ...

Do I still have to pay tax?

I don't know if this is a stupid question or not, but please try to answer it. I don't have any job. Only a little internet business. Whenever I get any checks, I just to go the bank and deposit them. Haven't paid a single tax yet. My parents pay taxes because they have jobs here.
  • Profile picture of the author Lawrh
    Yes. Every check you receive is taxable income. As an IM you are an independent business person so start keeping track of your checks or the CRA (Canada Revenue Agency) will eat you alive.
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    “Strategy without action is a day-dream; action without strategy is a nightmare.” – Old Japanese proverb -

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  • Profile picture of the author ebpglobal
    Originally Posted by Kinng View Post

    Hey, folks!

    I have a quick question to ask. I live in Canada and I am a new internet marketer. I get checks from Clickbank and Google AdSense. My question is ...

    Do I still have to pay tax?

    I don't know if this is a stupid question or not, but please try to answer it. I don't have any job. Only a little internet business. Whenever I get any checks, I just to go the bank and deposit them. Haven't paid a single tax yet. My parents pay taxes because they have jobs here.
    Hi,

    Best bet is to go to an accountant and see what's what (depending on how much you are making, there could be some free services for you in your area). I know that here in Manitoba Internet Marketing is handled exactly as if you were making a purchase at a physical store, and as you claim it as income, there will be CPP and EI deductions to concider as well.

    Your accountant will also be able to advise you on any business tax deductions (like all you computer costs and memberships - Aweber, hosting costs, your internet service provider, printer paper, etc.), and will be able to advise you on how much to pay yourself etc.

    It will be worth the couple hundred bucks, and will certainly ensure there are no tax surprises in April.

    I also heard that there is actually an Internet Division at CRA to keep track of people in Canada doing business on-line. If anyone knows more about this, I would be interested in hearing about this as well (I guess we could just call 1-800-O-Canada, but that would be too easy, now, wouldn't it ).

    Have a great day!

    Edward
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    • Profile picture of the author Karen Blundell
      Yes, you have to pay taxes on all your Internet earnings. What you do is you file your taxes as self-employed doing business under your own name if you don't want to bother registering a company name. In Canada this is completely acceptable.

      Now as a self-employed taxpayer you have lots of tax-saving deductions such marketing expenses, office expenses, etc.

      It is a good idea to talk to an accountant or even call the Canada help line.

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  • Profile picture of the author seasoned
    WHO CARES if "your parents pay tax"? The fact is that, for several reasons, this income is tied to YOU! YOUR situation determines the tax. There is PROBABLY a maximum allowed. In the US I think it is about $400 US. Once you go over your country's, or local, limit, you must pay tax.

    On the bright side, you will likely pay less as a percentage if you make less.

    I may not be in canada, but I know they ask for a lot of tax, provide a lot of services, and aren't stupid. That means that if you were ONE day old and made over the limit, they would tax you! Of course, at one day, your parents would make out the form, etc... but it would STILL be tied to YOU! BTW you might THINK 1 day is a stretch, but look at the olsen twins! They started when they were 9 months old! They are only about 23, and their estimated net worth has been as much as $500million! Don't think the IRS didn't want their "fair share". I'm sure canada is similar. OK, FORBES said that, when they were 20, they only had $100million, and were #11 on the richest women in entertainment.

    Steve
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    • Profile picture of the author Ken
      All income earned must be declared. No matter where it was earned.
      Considerations are given for taxes taken in other jurisdictions.

      Ken
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