Earned $700,000 in the last 3 years, havent paid taxes yet (Canadian)... PLEASE HELP
 

I made a similar post a few weeks ago here..
Basically in the last 3 years I have made about $700,000 USD.

I have not bought much with this money.. most of it is still in my bank account.

Now this was hard earned money. 1000 14-hour days day in and day out, 7 days a week.
Ive talked to tax attorney and an accountant, and it seems the only two options I have are
1) Flee the country and never return (you cant get extradited for tax evasion)
2) Pay the tax, all the late penalties.

I should make it clear that working online was my FIRST and only job ever. I have never paid taxes before this, and honestly I thought that I would not have to since this money was all earned from US companies (in US dollars) and Canada did not do a damn thing in helping me earn this money. Being in my teens when I made the majority of my money (I am 21 now) I did not realize that my thinking could be incorrect.

It is not that I do not want to pay my taxes, I do not want to get raped with these taxes. This money was supposed to go help me have a secure future. I pretty much sacrificed my youth to make this money. I have come to understand that if I were to pay personal income tax, it would amount to ~34% per year, an additional 9.5% per year interest, and lets not forget that since these funds are in USD, there will be a conversion factor added in also (because the USD was worth more 3 years ago, so I have to pay what the USD was worth back then). That means for 2005 when I made $200,000, I will have to pay 200000*0.34*1.095*1.095*1.3 = $106,000. I will lose half of my hard earned money to bullshit taxes.

So, I am begging GFY. Does anyone know a decent solution for me? I am a frequent visitor to GFY but I registered a new name to protect myself. I have talked to accountants (which all seem retarded) and a couple of lawyers (who also seem to be retarded) and I have learned nothing from them.

Again, its not that I do not want to pay taxes.. I do not want to pay 55% personal income taxes when corporate income taxes are ~25% here and the highest tax bracket for personal income tax is 39%.

I live in Edmonton, Alberta. My earnings for the last 3 years are
2005 180,000
2006 220,000
2007 280,000 (so far)

Any help will be greatly greatly appreciated. My ICQ is 294043919 if anyone wants to get a hold of me.

do a search on google for "tax amnesty canada"

Could I just make a new corporation and put 700K into it and pay taxes on that?
Could I return the money to my sponsor, saying it wasnt my money, get new checks (slowly), open a corporation and deposit it there?

Any ideas at all.. please let me know

http://escapeartist.com/ Just my opinion

Move to the US?

I'm sure Canada is quite different from the US, but I'm pretty sure the only viable option is to pay it. I don't think those amounts are worth fleeing the country and living as a fugitive for the rest of your life.

Your country wants you to pay and will probably work with you to pay it. In the US, they offer settlements as well as payment plans that can help. I would say I feel bad for you, but considering most of us here pay taxes and in many cases very high rates, you dug your own grave.

Retarded accountants and lawyers huh? Whose the one in serious tax trouble?

You are pretty much fucked on this. You are going to have to pay, either by choice, or by force.

You could leave the country, but you will have a hard time living the rest of your life with only $700K. Besides, what country would you even flee too? Unless you want to live in a third world country, I don't think you'll find too many places to stay. They might not be able to extradite you, but that doesn't mean that country B can't deport you.

you just end up paying even more with installments

That's life. You made a mistake. It's an expensive lesson you learned.

Dude, just pay it, lesson learned, everyone works hard for their money, obviously nobody wants to give it up, but you need too, its just how it works :(

You cant just dump 700k in a corp and hope for the best, not only will you still pay a shitload of taxes, you will set off about 26 redflags and if audited, say goodbye to even more since they will know what you did and you cant prove you all made that in 2007.

Pay it and move on.

Its a pretty easy decision really, you run the rest of your life or pay up. The tax rate may seem high to you but how do you think we have healthcare, and luxuries we have as a Canadian. If you opt to run the rest of your life, that means you need to move the money to a country where Canada has no control to seize the money, basically non-extradictable countries. Even though they won't try to get you arrested in a foreign country, they do have the ability to force the money out of your bank accounts to most countries out there.

So continue to live in a 1st world country and pay taxes or run and live in non-extradictable countries the rest of your life. You haven't begun to even live life yet at age 21, it would suck to be on the run the next 40-60 years.

WG

just so you know, the CRA WILL tack on COMPOUNDED interest on EVERY year you failed to pay. I know because I got fucked that way for not filling taxes for 5 years.

so it will be as follws

the amount you owe on taxes
+
Penalty fees
+
Interest

not sure what interest rate they use, but needless to say the first year that they taxes me for (didn't make much.. maybe $58 000 or so) was $5500 owing in taxes and the end owing amount for that was $17 000 and change with the penalty fees and shit..

so I would just pay it and get that out of your hair.. No point running.. once you start you can't stop.

The problem is you made a mistake for the past few years by not approaching a lawyer/accountant until today. Going forward, you won't be paying 50%+ in tax, but you need to fix this problem at the high tax rate if you stay in Canada. Sorry, no way around it. Run or pay up, it's that simple a decision.
WG

even though you list options you only have one
pay up and stop whining
you are not the only person in the world who doesn't like paying taxes

He said the lawyers and accountants are retarded .

Dude, you have heard all the answers.
Better to be raped by taxes then to be raped by your jailmates.

As everyone else has pointed out, you have one option: pay it. Unlike a lot of people in similar situations, you actually seem to HAVE the money to pay it. That means you can get it taken care of in one big whack and not have to worry about paying even MORE interest and fees on it.

Unreported Income

Where a taxpayer has failed to report income, including foreign source income, and voluntarily reports it, only the tax owing on the unreported income plus interest on it will be charged.

That came from http://www.taxpage.com/Articles/DISCLOSURE.htm - not sure how accurate it is I just found it thru google.

Bottom line is you have to pay taxes. They may waive the fees and interest if you voluntarily come forward but do that thru an atty.

Dont worry about it man, I pay tax on a third of 150k every year, they don't bother me 'cause I'm young and make a reasonable amount for my age. I don't spend it 'blinging' or 'ballin' either so that keeps the attention down.

If you're not declaring ANYTHING then you are probably already on file somewhere. Good news is here in Canada you have 7 years before they can come after you for not filing your taxes, so start saving your pennies now if you haven't already been putting aside from your $700k, you'll be shedding 350k or 20 years of your life when the tax man comes a-knockin.

not again ...

Some people need fake BIG drama to feel important :2 cents:

PS - you are 21 and made 700K, taxes have to be paid and if you look at your earning you see significant growth so by the time you are 30 you will have made a lot more. Just pay the $$ and sleep well.

is it madawgz? :1orglaugh

I would take the Government of Canada to court. Tell them to go fuck themselves. How is a Canadian supposed to know that money earned in the US is taxable in Canada? Fucking government and their smoke and mirrors.

PLUS you worked hard for that money, (not like everyone else earning that and more), so why should your future be cut in half just to pay some taxes on things you use every single day of your life?

Fuck them and especially fuck all those retarded lawyers and accountants who think that you're going to have to pay up. Fucking retards, they're all just a bunch of yes men kissing the governments ass.

Send me the money, i pay my taxes :1orglaugh

Mind you, if you don't use the streets, drink any of the water, sleep safely at night or go to the hospital ever, then I guess you shouldn't feel too bad about it; if its any consolation you'll only go to jail with drug dealers who also skip out on their taxes.

This was the most retarded thing I read on the internet in the last 24 hours, I guess some form of congratulation is in order.

Pay the taxes...

are you fucking stupid
no one is a broke fuck like you

troll in another thread.

see my sig? empty. if i were starting fake drama id have a juicy fleshlight ad or something

For this year, I have earned $280,000

Can I just make a corporation (this year), put this years money in that and pay corporate taxes?

And for those flaming me that I dont want to pay taxes, I said clearly I DO. I could be paying 25% corporate taxes but I am paying 50% personal income taxes. I said I do not want to get fucked by taxes not that I dont want to pay them

Talk to a good tax attorney. AFAIK, you can't retroactively put the funds into a corporation (the checks were written to YOU, right?) but there may be a loophole somewhere.

Seriously, a good tax attorney will get you more info on specifics than GFY. :thumbsup

I would just pay it man, if you already made 280k this year, take the lesson learned and move on. It's not like your not making enough money now anywase

Sorry find find it hard to fathom how you could be smart enough to make so much money but be so stupid.

WTF does that country the money came from have to do with anything? Are you a Canadian citzen do you reside in Canada? Then common sense tells you that you owe taxes. If it was that easy to avoid taxes almost everyone would be doing it.

This is the third thread about your earnings?? :)

Your attorney is correct and these are the two options you have - as was already stated in your first thread.

Your net profits before taxation are not your property - the balance after taxes have been paid is. Tho agree - it's easy to look at a bank account and think "that's mine" *lol*

OK.. quick analysis - $700K is 517,300 Euros or 350,700 Pounds Sterling. This is not a "massive" amount of money in other currencies.

On option 1 - flee the country. You will have your $700K intact and this can be significant in any country which accepts US$ where you can prob buy a home for $200-300K and keep the rest. A problem may start with passport renewal when you request a replacement passport at the Canadian embassy. It also means you are taking a risk if you visit Canada again.

Option 2 - Pay all taxes/penalties. Dunno, but you may be left with 250K-300K'ish and you are then free to organize your biz affairs to reduce taxation legally - and with no problems living or visiting Canada.

If you elect option 2, it's obvious you will need sensible taxation advice and one or more corps with the object of reducing future taxation.

There can be an advantage in moving to a low or no-taxation country if you can see a continuation in earnings of this level upwards. This can be done "legally" by paying all due taxes in Canada, then moving to another country. (Or, it can be done "illegally" by simply shipping out of Canada with your $700K) There is prob going to be personal background stuff to consider either way.

If this is true ( And I would bet my dick it isn't ) , you wouldn't be asking here ....
What is funny is that you make, at 18 or so, 200K in the first year ... Any expenses ... it just fell from the sky ...

If it is true, you ARE a DICKHEAD :2 cents:

If you disclose it to CRA voluntarily they have a program so that you won't have to pay penalty fee's, you will have to pay interest however. You owe the money (whether you think the taxes are bullshit or not) you've reaped the benefits of living in this country... might as well pay up.

Thread closed :winkwink:

Contact me on ICQ if you want some advice, I'd rather not post it here

there's people in the US that settle tax debt for literally pennies on the dollar. I'm talking people that at one point owed $75k and settled for $10k. There's got to be the same sort of people up in Mooseland so call around before doing anything dumb

Bigmook , if he is offering you advice YOU BETTER take it .
This guy helped me do wonders in this bizz :)

Get an attorney...

Yea.. cause asking on a forum is clearly moronic where many of its members (not you of course, you stupid broke ass piece of shit) actually made a nice chunk of change and may have gone through something similar.

It's best to pay your taxes on time, but if it's late, you need to pay it late. If you have the money in the bank, you can pay it all at once and avoid interest, etc... I pay my taxes quarterly here in the US. It sucks paying it, but it's paid. I just wish my tax money was used for more than paying for Bush's mistakes, but that's another story completly:)

I would just bite the bullet, contact a good accountant and setup a proper business which will help you save money going forward.

Return it to your sponsor and getting it back slowly? Why? Give it to me. I will return it to you much slower.

Pay your Taxes man...your parents paid and your children will pay. You should too.

madawgz says he's 19... not 21...

pay the taxes and then search for a country that has smaller taxes.

Pay it and consider it an expensive education.