is my job going to affect sponsorship approval

[glen1990]

hi, my sister is currently in the process of completing the sponsorship application and she is concerned about her employment. She is currently an exotic dancer and makes cash. She files her taxes but I don't think she declares anything. If she is truthful about her employment and shows that she actually makes a good deal of money, will this affect her chances.

Thank you in advance for the reply.

FYI she has been married to her husband for 2 years and is now just starting the PR process.

 

[scylla]

No - this won't impact sponsorship.

 

[Rob_TO]

She is the one applying for PR? If so there is no need for her to show her taxes or income anyways. This is only needed by sponsor.

 

[glen1990]

She is the one applying for PR? If so there is no need for her to show her taxes or income anyways. This is only needed by sponsor.

no she is the one sponsor

 

[glen1990]

No - this won't impact sponsorship.

what do you recommend she provides as proof of income?

 

[scylla]

what do you recommend she provides as proof of income?

I read too quickly and missed that she lies in her taxes. Normally I would say her tax return is all she needs to provide. In this case - I have nothing to recommend.

 

[glen1990]

I read too quickly and missed that she lies in her taxes. Normally I would say her tax return is all she needs to provide. In this case - I have nothing to recommend.

I did not say she lies. I said while she files her taxes I am not certain of what she declares.

Thanks anyways

 

[scylla]

I did not say she lies. I said while she files her taxes I am not certain of what she declares.

Thanks anyways

If she declares her cash income in her taxes, then she can simply include her tax return statement in her sponsorship application. If she doesn't - then that is in fact lying (technically tax fraud).

 

[Rob_TO]

no she is the one sponsor

In that case she must submit last years tax return.

She is committing massive tax fraud if she isn't reporting cash earnings, so if CRA ever finds out she could be in for an audit and lots of fines and back taxes owed.

as long as her CRA NOA shows some basic income, her sponsorship should be fine. There is no minimum income required.

 

[glen1990]

In that case she must submit last years tax return.

She is committing massive tax fraud if she isn't reporting cash earnings, so if CRA ever finds out she could be in for an audit and lots of fines and back taxes owed.

as long as her CRA NOA shows some basic income, her sponsorship should be fine. There is no minimum income required.

right..ya its a difficult situation and really is a lesson to her.

Thanks for your reply

 

[Rob_TO]

right..ya its a difficult situation and really is a lesson to her.

Thanks for your reply

Also on a side note she should be aware that CRA has a list of professions that routinely deal in cash and are more likely to see tax fraud in yearly returns. So she needs to be prepared that at any time in the future she may face a "lifestyle audit", which means CRA will look at her tax returns and make sure it aligns to her assets and spending activity. So they will look at value of her home, car, bank transactions, credit card purchases, etc etc to make sure it's reflective of her claimed income. I believe they can go back around 7 years to audit.

CRA also has a tip/leads line for people to report those that they think are not claiming all their taxes, so always need to be careful in professions where this happens a lot, and try not to make too many enemies!

May never happen, but you never know.

 

[scylla]

Also on a side note she should be aware that CRA has a list of professions that routinely deal in cash and are more likely to see tax fraud in yearly returns. So she needs to be prepared that at any time in the future she may face a "lifestyle audit", which means CRA will look at her tax returns and make sure it aligns to her assets and spending activity. So they will look at value of her home, car, bank transactions, credit card purchases, etc etc to make sure it's reflective of her claimed income. I believe they can go back around 7 years to audit.

May never happen, but you never know.

This happened to a friend of mine. She seems to be on some sort of permanent (?) sh*t list now and has been audited each year for the last ten years (they caught her 10 years ago, went back five years and then have been auditing her annually since). For the first little while they actually withdrew money from her account directly (she owed back taxes and fines).

 

[glen1990]

Also on a side note she should be aware that CRA has a list of professions that routinely deal in cash and are more likely to see tax fraud in yearly returns. So she needs to be prepared that at any time in the future she may face a "lifestyle audit", which means CRA will look at her tax returns and make sure it aligns to her assets and spending activity. So they will look at value of her home, car, bank transactions, credit card purchases, etc etc to make sure it's reflective of her claimed income. I believe they can go back around 7 years to audit.

May never happen, but you never know.

Oh I know. It would love for her just live clean as you never know when something could happen like what you mentioned. Like I said. lessons that need to be learned.

 

[glen1990]

This happened to a friend of mine. She seems to be on some sort of permanent (?) sh*t list now and has been audited each year for the last ten years (they caught her 10 years ago, went back five years and then have been auditing her annually since). For the first little while they actually withdrew money from her account directly (she owed back taxes and fines).

and i'm sure it will eventually happen to her. But she has a horse shoe up her you know what. She gets away with things that others might not be so lucky to get away with.

As long as her stating her job wont be an issue for the PR process then all the other stuff she will have to deal with when the time comes.

Thanks