PR with 1,300+ days, but I have an unreported foreign income problem. How do I fix it before applying for citizenship?

[Vacohara]

I became a permanent resident in October 2022 and have about 1,360 days physically in Canada, so residency isn't an issue. My problem is taxes. I work remotely from Canada for a Dubai-based company on an informal, no-contract basis, earning about $3,500/month. Basically the guy has $9000 job that he's asked me to work for him. It works cause i work from home, at my pace and t my time. Instead of being paid to me directly, the salary went to my parents' account in India, and then to my sister, who sends me about $1,500/month. Dad has a home and land loan that can be paid off with the help of our uncle who is CA. I haven't filed Canadian returns reporting this income. I now realise I'm probably required to report my full worldwide income as a Canadian tax resident.

PS: I may get schooling on being honest about money returns and I promise once my home/land loan is paid off I'll happily do the needful. For now please just give me helpful adivce

 

[canuck78]

I became a permanent resident in October 2022 and have about 1,360 days physically in Canada, so residency isn't an issue. My problem is taxes. I work remotely from Canada for a Dubai-based company on an informal, no-contract basis, earning about $3,500/month. Basically the guy has $9000 job that he's asked me to work for him. It works cause i work from home, at my pace and t my time. Instead of being paid to me directly, the salary went to my parents' account in India, and then to my sister, who sends me about $1,500/month. Dad has a home and land loan that can be paid off with the help of our uncle who is CA. I haven't filed Canadian returns reporting this income. I now realise I'm probably required to report my full worldwide income as a Canadian tax resident.

PS: I may get schooling on being honest about money returns and I promise once my home/land loan is paid off I'll happily do the needful. For now please just give me helpful adivce

You are committing tax fraud which is a crime. Nobody is thrilled about paying taxes and most would prefer to pay off debts before they pay their taxes but it is illegal to lie about your income and to evade taxes. If you want the benefits that come with living in Canada and want to become a citizen you can’t lie about your income. If you want to work for a UAE employer tax free then you could easily move to the UAE or another country with no income taxes. Tax evasion could lead to you losing PR and/or ruin your chances of ever becoming a Canadian citizen. You have also involved your family in criminal activity. You were clearly aware that you were doing wrong and evading taxes given your payment agreement with your employer and your agreement with your sister and parents to transfer funds back to you in Canada. Your only option is to file your taxes with your genuine income and pay taxes if owed on your income. If you get away with just declaring your actual income since you started this arrangement and filing your genuine taxes and are then able to secure citizenship I would consider myself lucky. If you continue to commit tax evasion then you put your status in Canada at risk forever because it would have been obtained based on misrepresenting your income/work history and also put your family’s chances of ever coming to Canada at risk as well. Your bank account should show monthly transfers and without any declared income or job you could easily be asked where the transfers are from and how you are supporting yourself in Canada. Get a second or third job if you want to be able to repay debts but without committing a crime at the same time.