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Old 05-15-2004, 10:23 AM  
rickholio
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Join Date: Jan 2004
Location: Nor'easterland
Posts: 1,914
If you live and work in Canada providing services (for instance, selling content, programming, administration etc) and get US funds for your services, then you should declare in Canada (with an added bonus that you don't need to withhold GST on goods/services sold to the US which are considered 'zero rated'). When things start getting more complex, the answer isn't quite so simple.

If you're smart, you'll incorporate so your tax burden is substantially reduced and which will allow you to take $25k or more per year tax free from your business to personal as a dividend, plus get major tax advantages by writing off travel, computer parts, subcontractor labour etc as direct expenses. In the maritimes (where I live) I get an effective 18% discount on many things because I can hahahahaha those expenses off directly against my corporate taxes.

IANAA (I Am Not An Account), and thus I believe it's ABSOLUTELY essential that you find out what the deal with the tax situation is in your situation... the last thing you want is CCRA ripping through your financial history. While not as soul-crushingly evil as the IRS, they'll still make your life awfully miserable if you take too many liberties.
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