Need some advice.. Made > $700,000 but still havent paid taxes (Canadian) - GoFuckYourself.com - Adult Webmaster Forum

X

thebigmook

Registered User

Join Date: Jul 2007

Posts: 35
Share

Post
#1

Need some advice.. Made > $700,000 but still havent paid taxes (Canadian)

07-31-2007, 09:45 AM

The interweb has been good to me. I have been working on websites trying to make coin before I was even legally able to drink or buy a pack of smokes. Living in Canada I never had a real job with monthly earnings that would take care of my taxes for me automatically.

Now, 5 years since I first started experimenting with HTML, I have made over $700,000 - mostly from adult. But all this time I keep receiving wires and checks and never bothered to do my taxes. All was well when I was still a minor but now I think I have dug myself quite the hole.

If I were to pay all my taxes for the last 5 years I will get absolutely raped by the Canadian tax system, and close to half (yes half) my earnings will be forfeited.

I want to make a corporation and pay the low 20% tax rate.. but I dont know how that works exactly. I do not want to avoid paying taxes, I just dont want to pay an unfair amount of tax.

Please help me.. what are my options? I dont want to go to a lawyer/accountant right away in fear they will fuck me over. All my wires go directly to my bank, and I currently have some investments (GICs) with that bank that are about to mature soon. I earned about 280k last year, 150k the year before and I will probably earn around 400k this year.

Any help at all is highly appreciated.. what should I do??

Last edited by thebigmook; 07-31-2007, 09:47 AM.
Tags: None
beemk

CLICK HERE

Join Date: Jan 2002

Posts: 20829
Share

Post
#2

07-31-2007, 09:49 AM

you need to talk to an accountant, they do this stuff for a living, we make porn sites for a living so the best advice anyone on gfy could give you would be to find the best accountant in your area.

I host with Vacares
Comment
L0stMind

Confirmed User

Join Date: Sep 2002

Posts: 1681
Share

Post
#3

07-31-2007, 09:51 AM

you can't sneak past earnings into a corporation.

you _NEED_ an accountant.

you need to incorporate asap and move assets into the corp and start reporting income and such properly.

Good Luck. Paying this off is going to hurt.

http://cashcore.com - Make Money.
http://ezprovider.net - Hosting.
Comment
tranza

ICQ: 197-556-237

Join Date: Jun 2003

Posts: 57559
Share

Post
#4

07-31-2007, 09:55 AM

Bottom line: you are fucked.

I'm serious.

I'm just a newbie.
Comment
Pipecrew

Master of Gfy.com

Join Date: Feb 2002

Posts: 14888
Share

Post
#5

07-31-2007, 09:59 AM

You are soo fucked, you cant just go back and dump money into a corpo, you are pay 49% on 700k, when you start your corp you can pay the first 400k CDN at 20%, then the rest will be high.

Actually keep in mind, the penalties alone for not declaring and basically hiding, is going to be pretty bad as well, Interest etc.

Last edited by Pipecrew; 07-31-2007, 10:00 AM.
Comment
fuzebox

making it rain

Join Date: Oct 2003

Posts: 22363
Share

Post
#6

07-31-2007, 10:03 AM

I may be opening myself up for flaming here, but you do have options. Most of them are grey-area and involve moving your money out of the country as quickly as possible... but you should really talk to a professional.
Comment
polish_aristocrat

Too lazy to set a custom title

Join Date: Jul 2002

Posts: 40377
Share

Post
#7

07-31-2007, 10:05 AM

Originally posted by thebigmook

I have made over $700,000 - mostly from adult. But all this time I keep receiving wires and checks and never bothered to do my taxes.

All my wires go directly to my bank, and I currently have some investments (GICs) with that bank that are about to mature soon.

you should have opened a bank account in some good offshore jurisdiction

you would be still doing illegal tax evasion, but at least there would be a very huge chance, that no one would know about it

I don't use ICQ anymore.
Comment
polish_aristocrat

Too lazy to set a custom title

Join Date: Jul 2002

Posts: 40377
Share

Post
#8

07-31-2007, 10:09 AM

btw one GFY'er (an American!) was also not doing his taxes for 3 years or so, and he was bragging here about buying new BMW's....

so perhaps you'll get lucky and it won't be so bad for you after all

I don't use ICQ anymore.
Comment
Ross

Ik ben een aap

Join Date: Sep 2002

Posts: 18874
Share

Post
#9

07-31-2007, 10:09 AM

Making that amount of money and not paying tax you are a silly boy! Its not like you can't afford it.
Comment
Pipecrew

Master of Gfy.com

Join Date: Feb 2002

Posts: 14888
Share

Post
#10

07-31-2007, 10:09 AM

Originally posted by fuzebox

I may be opening myself up for flaming here, but you do have options. Most of them are grey-area and involve moving your money out of the country as quickly as possible... but you should really talk to a professional.

Yeah and leaving canada for the rest of his life.
Comment
Flynn

pr0's goat screwed me

Join Date: Jan 2002

Posts: 2083
Share

Post
#11

07-31-2007, 10:10 AM

yeah, good luck to you.

blah blah blah
Comment
polish_aristocrat

Too lazy to set a custom title

Join Date: Jul 2002

Posts: 40377
Share

Post
#12

07-31-2007, 10:10 AM

shit, this guy is from Canada and is 5 years in adult.. and it looks like this is just a fake nick, he must be a regular GFY'er...

i hope his nickname doesnt start with 'b' and ends with 'f'

I don't use ICQ anymore.
Comment
Brad Mitchell

Confirmed User

Join Date: Nov 2001

Posts: 9813
Share

Post
#13

07-31-2007, 10:11 AM

Go see a GOOD accountant, someone pricey. You might be surprised what they can negotiate for you.

Brad

President at MojoHost | brad at mojohost dot com | Skype MojoHostBrad
71 industry awards for hosting and professional excellence since 1999
Comment
jonesonyou

Confirmed User

Join Date: Sep 2003

Posts: 3853
Share

Post
#14

07-31-2007, 10:12 AM

Originally posted by L0stMind

you can't sneak past earnings into a corporation.

you _NEED_ an accountant.

you need to incorporate asap and move assets into the corp and start reporting income and such properly.

Good Luck. Paying this off is going to hurt.

And I hope you didnt spend all of your earnings already.. . .. .

Completely Real Amateur girls doing awesome things! Signup to promote Nebraskacoeds Today!
Hit me up on ICQ/AIM 473324556/jasonnecoeds for exclusive content to promote with! And any ?'s
Comment
Mutt

Too lazy to set a custom title

Join Date: Sep 2002

Posts: 34431
Share

Post
#15

07-31-2007, 10:14 AM

plead insanity.

I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!
Comment
JFK

FUBAR the ORIGINATOR

Join Date: Jan 2002

Posts: 67369
Share

Post
#16

07-31-2007, 10:15 AM

Originally posted by polish_aristocrat

shit, this guy is from Canada and is 5 years in adult.. and it looks like this is just a fake nick, he must be a regular GFY'er...

i hope his nickname doesnt start with 'b' and ends with 'f'

wonder who that be ?

FUBAR Webmasters - The FUBAR Times - FUBAR Webmasters Mobile - FUBARTV.XXX
For promo opps contact jfk at fubarwebmasters dot com
Comment
rowan

Too lazy to set a custom title

Join Date: Mar 2002

Posts: 17393
Share

Post
#17

07-31-2007, 10:17 AM

Talk to an accountant ASAP, if you voluntarily submit your prior tax returns they govt may make some concessions on what you owe.
Comment
thebigmook

Registered User

Join Date: Jul 2007

Posts: 35
Share

Post
#18

07-31-2007, 10:17 AM

haha im not bdjuf
im sure that guy has made well over $700,000.. besides hes located in Quebec from what I can remember (Im in Alberta)
Comment
Pornopat

AdultTubeSubmits.com

Join Date: Dec 2003

Posts: 10598
Share

Post
#19

07-31-2007, 10:18 AM

Originally posted by thebigmook

Please help me.. what are my options? I dont want to go to a lawyer/accountant right away in fear they will fuck me over. All my wires go directly to my bank, and I currently have some investments (GICs) with that bank that are about to mature soon. I earned about 280k last year, 150k the year before and I will probably earn around 400k this year.

Any help at all is highly appreciated.. what should I do??

Go to a few accountants and compare options. Play them out against each other and end up with the best one. Accountants are not out to fuck you over. Especially when you mention from the start that you will be comparing.

If you are afraid to give your name go together with a friend and pay him cash to pay the bill for the visit.

https://stripcash.com/sign-up/?userI...fff832eb95ab6a
Comment
Holly

Too lazy to set a custom title

Join Date: Jun 2003

Posts: 10017
Share

Post
#20

07-31-2007, 10:24 AM

I'd go out and buy a really expensive car. Something that the doors will lift up. The ladies like that sort of thing. And get a loud stereo for it.

War National Damn Champions Eagle
Comment
Axeman

Confirmed User

Join Date: Feb 2004

Posts: 5201
Share

Post
#21

07-31-2007, 10:24 AM

See an accountant and it soon. Your going to pay a lot, but better now then to keep prolonging it and waiting for the interest and penalties and other issues to keep piling on you.

XXXRewards - Karups - Boyfun - Jawked. Paying on time since 1997. Contact me at brent [at] xxxrewards.com
Comment
thebigmook

Registered User

Join Date: Jul 2007

Posts: 35
Share

Post
#22

07-31-2007, 10:26 AM

What do you guys think I will have to end up paying?
The tax bracket for the highest income earners in Alberta is 39%
Comment
webgurl

Confirmed User

Join Date: Aug 2002

Posts: 7954
Share

Post
#23

07-31-2007, 10:29 AM

Leaving canda is an option but it may haunt u when u come back .
You are lucky we don't have the IRS , they are a tad bit more
hardcore then CR
Comment
thebigmook

Registered User

Join Date: Jul 2007

Posts: 35
Share

Post
#24

07-31-2007, 10:31 AM

Originally posted by webgurl

Leaving canda is an option but it may haunt u when u come back .
You are lucky we don't have the IRS , they are a tad bit more
hardcore then CR

Actually I really dont mind leaving Canada.. I want to move to the States soon anyway
Comment
flashfire

ICQ 1 6 7 8 5 3 4 9 2

Join Date: Feb 2003

Posts: 13098
Share

Post
#25

07-31-2007, 10:34 AM

so you are making 140,000 a year and not paying any taxes...at all? you would be in the highest personal tax bracket
Comment
WiredGuy

Pounding Googlebot

Join Date: Aug 2002

Posts: 34515
Share

Post
#26

07-31-2007, 10:35 AM

You may be able to shelter this years earnings (or a portion thereof) within a new corporation but very little chance you can legally do it for past years. No matter what, you need to talk to an accountant asap, and especially before the feds catch on, then you'll be really screwed. No matter what, expect to forfeit nearly half your earnings.
WG

I play with Google.
Comment
tony286

lurker

Join Date: Aug 2002

Posts: 57021
Share

Post
#27

07-31-2007, 10:35 AM

Talk to a accountant.
Comment
webgurl

Confirmed User

Join Date: Aug 2002

Posts: 7954
Share

Post
#28

07-31-2007, 10:35 AM

Originally posted by Ross

Making that amount of money and not paying tax you are a silly boy! Its not like you can't afford it.

Well he made that over the years . You can blow that kinda money
fast , in Canada nice cars , housing everything is more then
the U.S . {Plus he has to pay back all those years he missed out on
that's a good chunk of change taxes here is a nightmare , when u make
a certain % bracket u pay ALOT i mean depending how much 40% + is nuts
Its easy to spend that $$$ and have nothing left over
to pay the govt' . If you are planning to do it legit , u better find a shit load of stuff
to write off and have proof of it too
Comment
WiredGuy

Pounding Googlebot

Join Date: Aug 2002

Posts: 34515
Share

Post
#29

07-31-2007, 10:36 AM

Originally posted by thebigmook

Actually I really dont mind leaving Canada.. I want to move to the States soon anyway

The IRS will cooperate with CCRA to seize back taxes. Seriously, its a hard hit but would you rather be on the run the rest of your life? You are making good money so you may as well legally keep it. It's a one time hit and you'll be fine within a year.
WG

Last edited by WiredGuy; 07-31-2007, 10:37 AM.

I play with Google.
Comment
Pornopat

AdultTubeSubmits.com

Join Date: Dec 2003

Posts: 10598
Share

Post
#30

07-31-2007, 10:39 AM

Did I mention that I only pay 2% tax on profit here on the island?

For the right price I can help you people set up tha same legal construction.

https://stripcash.com/sign-up/?userI...fff832eb95ab6a
Comment
webgurl

Confirmed User

Join Date: Aug 2002

Posts: 7954
Share

Post
#31

07-31-2007, 10:41 AM

Originally posted by WiredGuy

The IRS will cooperate with CCRA to seize back taxes. Seriously, its a hard hit but would you rather be on the run the rest of your life? You are making good money so you may as well legally keep it. It's a one time hit and you'll be fine within a year.
WG

lol , not only that but if you plan on staying in this industry
wtf would u go to Bush's territory . IMO , insane .
Comment
Pipecrew

Master of Gfy.com

Join Date: Feb 2002

Posts: 14888
Share

Post
#32

07-31-2007, 10:42 AM

Originally posted by WiredGuy

The IRS will cooperate with CCRA to seize back taxes. Seriously, its a hard hit but would you rather be on the run the rest of your life? You are making good money so you may as well legally keep it. It's a one time hit and you'll be fine within a year.
WG

I also wonder if this is in USD or CDN. I am not a tax expert, i wonder if they go back 5 years and nail him at a 1.5 exchange rate.
Comment
thebigmook

Registered User

Join Date: Jul 2007

Posts: 35
Share

Post
#33

07-31-2007, 10:43 AM

Originally posted by Pornopat

Did I mention that I only pay 2% tax on profit here on the island?

For the right price I can help you people set up tha same legal construction.

do you get to keep the luxuries of a canadian/american citizenship?
Comment
webgurl

Confirmed User

Join Date: Aug 2002

Posts: 7954
Share

Post
#34

07-31-2007, 10:43 AM

Originally posted by Pipecrew

I also wonder if this is in USD or CDN. I am not a tax expert, i wonder if they go back 5 years and nail him at a 1.5 exchange rate.

interesting , but i know the answer to this they will find the average
for every year since he missed on . I remember asking my accountant
few years ago this exact question
So yep
Comment
Brad Gosse

Confirmed User

Join Date: Jan 2002

Posts: 2616
Share

Post
#35

07-31-2007, 10:45 AM

You don't need an accountant you need a tax attorney ;)

Free Clipart
Comment
Pipecrew

Master of Gfy.com

Join Date: Feb 2002

Posts: 14888
Share

Post
#36

07-31-2007, 10:46 AM

Originally posted by webgurl

interesting , but i know the answer to this they will find the average
for every year since he missed on . I remember asking my accountant
few years ago this exact question
So yep

Probably ends up around 1.3, and assuming you have been partying like a rockstar, it could leave some people in a bad position.
Comment
fuzebox

making it rain

Join Date: Oct 2003

Posts: 22363
Share

Post
#37

07-31-2007, 10:46 AM

Originally posted by Pipecrew

Yeah and leaving canada for the rest of his life.

And that's a bad thing?
Comment
WiredGuy

Pounding Googlebot

Join Date: Aug 2002

Posts: 34515
Share

Post
#38

07-31-2007, 10:46 AM

Originally posted by Pipecrew

I also wonder if this is in USD or CDN. I am not a tax expert, i wonder if they go back 5 years and nail him at a 1.5 exchange rate.

I know for a fact they will and they'll use these exchange rates on a month to month floating basis to figure out your exact net value: http://www.bankofcanada.ca/en/rates/...e_avg_pdf.html

WG

I play with Google.
Comment
webgurl

Confirmed User

Join Date: Aug 2002

Posts: 7954
Share

Post
#39

07-31-2007, 10:49 AM

Originally posted by Pipecrew

and assuming you have been partying like a rockstar,

rofl , pipecrew u rock .
He wasn't making enough to be partying like a rockstar .
Comment
webgurl

Confirmed User

Join Date: Aug 2002

Posts: 7954
Share

Post
#40

07-31-2007, 10:50 AM

Originally posted by WiredGuy

I know for a fact they will and they'll use these exchange rates on a month to month floating basis to figure out your exact net value: http://www.bankofcanada.ca/en/rates/...e_avg_pdf.html

WG

My accountant says they will do the annual average
Not Monthly Maybe he is wrong i dunno . Thank Goodness
i am not in that position what a nightmare .
Comment
thebigmook

Registered User

Join Date: Jul 2007

Posts: 35
Share

Post
#41

07-31-2007, 10:51 AM

Originally posted by Pipecrew

I also wonder if this is in USD or CDN. I am not a tax expert, i wonder if they go back 5 years and nail him at a 1.5 exchange rate.

Well thankfully almost all funds (98%) are in USD
Comment
Pornopat

AdultTubeSubmits.com

Join Date: Dec 2003

Posts: 10598
Share

Post
#42

07-31-2007, 10:51 AM

Originally posted by thebigmook

do you get to keep the luxuries of a canadian/american citizenship?

Yes. You can even stay and live there.
Also with this construction though it does not cover money you have made in the past.
Just from the time you have the construction.

https://stripcash.com/sign-up/?userI...fff832eb95ab6a
Comment
webgurl

Confirmed User

Join Date: Aug 2002

Posts: 7954
Share

Post
#43

07-31-2007, 10:51 AM

Originally posted by fuzebox

And that's a bad thing?

<sigh> u can be a real idiot u know that .
Comment
AlienQ - BANNED FOR LIFE

best designer on GFY

Join Date: Mar 2003

Posts: 30307
Share

Post
#44

07-31-2007, 10:52 AM

Hope ya got all 700K right now cuz if not yer fucked and after its all said and done ya gonne end up with about 300K.

NAKED HOSTING FTW!11 I'm On The INSANE PLAN $9.95/mo!
| The Alien Blog Adult News Worth Reading Updated Daily
| Content For Sale! 641 PICS 216 MINUTES OF VIDEO $350.00 |ICQ: 78943384 |
Comment
WiredGuy

Pounding Googlebot

Join Date: Aug 2002

Posts: 34515
Share

Post
#45

07-31-2007, 10:53 AM

Originally posted by webgurl

My accountant says they will do the annual average
Not Monthly Maybe he is wrong i dunno . Thank Goodness
i am not in that position what a nightmare .

During my audit we took the monthly's, although at the time (2002/2003) i think it worked in my favour to doing monthly's over yearly's which is why we did it.

But going forward since 2003, I was told to do it with monthly's, I think that was part of the agreement with the CCRA after the audit.
WG

I play with Google.
Comment
Axeman

Confirmed User

Join Date: Feb 2004

Posts: 5201
Share

Post
#46

07-31-2007, 10:53 AM

Originally posted by WiredGuy

I know for a fact they will and they'll use these exchange rates on a month to month floating basis to figure out your exact net value: http://www.bankofcanada.ca/en/rates/...e_avg_pdf.html

WG

Yep so if the $700K is in US funds he is in a world of hurt to get things straightened out, but worth it in the end. Better than running for life and never wanting to come back to Canada to visit friends or family due to risking being caught.

XXXRewards - Karups - Boyfun - Jawked. Paying on time since 1997. Contact me at brent [at] xxxrewards.com
Comment
magicmike

Confirmed User

Join Date: Feb 2003

Posts: 2384
Share

Post
#47

07-31-2007, 10:56 AM

just spend it all real quick and settle with CCRA they'll charge you like $10,000 or something stupid.

Seriously its insane on what i've heard people settle with them once they are broke.

Nothing at all like the US system.

Just Porno with both classic and mobile porn versions.
Gay Porn Our mega gay site tranny porn
Comment
_Richard_

Too lazy to set a custom title

Join Date: Oct 2006

Posts: 30989
Share

Post
#48

07-31-2007, 10:57 AM

wow, good luck man. I'd hire an accountant and a lawyer.. now
Comment
Axeman

Confirmed User

Join Date: Feb 2004

Posts: 5201
Share

Post
#49

07-31-2007, 10:58 AM

Originally posted by thebigmook

Well thankfully almost all funds (98%) are in USD

Well this doesn't much matter to them. You are Canadian so they will take your earning in US dollars and convert them to CDN with the exchange rate for each of those years to get your true income in CDN Dollars for the year and then tax you.

If you left most of your cash flow in USD and now gotta pay with the old exchange rate you are getting hit again. If you converted that cash to Canadian when the rates were $1.3 say then at least for the year your paying at $1.3 your even. If they ding you at $1.3 and your having to exchange your USD to pay it now at 1.04 thats a big difference.

XXXRewards - Karups - Boyfun - Jawked. Paying on time since 1997. Contact me at brent [at] xxxrewards.com
Comment
magicmike

Confirmed User

Join Date: Feb 2003

Posts: 2384
Share

Post
#50

07-31-2007, 10:59 AM

I'd say hypothetically of course you other options are.

a) start paying now and hope they don't back audit you
b) talk to an accountant and lawyer

option b is the safe plan, a is the risky one, but I also know a lot of people that who do pay taxes in forms of deductions off their pay check but then don't bother to file tax returns.

Just Porno with both classic and mobile porn versions.
Gay Porn Our mega gay site tranny porn
Comment

Previous 1 2 3 template Next

Working...