Tax problems from getting money transferred to your account?
In Canada, if I have money transferred regularly to my account, would I have to pay income taxes for it? I mean, does the government track things like that? What if it’s not my income, and somebody else’s money that I’m just holding for them?
It’s not my income, it’s someone else’s income. He doesn’t have his own bank account because he’s in another country. Anyway, how can the government tell if it’s income or not?
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
July 1st, 2010 at 12:13 pm
If it is not income, it is not taxed. The person for whom you are holding the money paid taxes on it, right?
Although if you made interest on the money (is it in a high interest savings account?), you will have to pay taxes on that.
July 1st, 2010 at 12:34 pm
Be aware that transfers of money can be tracked, and are required to be in certain circumstances by the FINTRAC laws. I hope the friend is not using you in a money laundering sort of scheme.
From a tax standpoint, as another poster noted, you could certainly owe taxes on the interest earned, since the account is in your name.