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Old 09-09-2005, 06:13 PM  
Paul Waters
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Join Date: Mar 2003
Location: Toronto, Ontario
Posts: 4,402
Hehe,

I *am* an accountant, and in my real job I implement complex software and I make sure that the taxes work properly.

I am not in public practice.

I can tell you that income as an affiliate is very ambiguous. I am pretty sure CCRA has not written an opinion, and it has not been tested in court.

I would argue that you are a sales agent earning a commission from foreign sales.

That is not good. Because you are doing the work in Canada you have to charge your client GST. That means that if you make $25 you have to account for it as 23.36 of revenue and 1.64 of GST.

The web site can register for the gst and get the 1.64 back. If you are significant enough, they may be willing to do this and pay you 26.75. And get 1.75 back.

Since doing it properly, Rev Can gets nothing they may not push it if they are otherwise happy with you. That means paying your income taxes.

But who knows? There is no precedent.
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