PGP sponsorship income for 2017

[alijumani]

Hello, asking for one of my friend. My friend wants to sponsor their parents for 2020 but the problem is he is not meeting minimum income for 2017 as he is only short for 14000 dollars to meet income. Is it advisable if he increase 2017 income now pay the taxes and have is re assess to be in that 2017 income threshold? Increasing income would not be an issue from CRA but he is more concerned as IRCC will see that 2017 NOA was reassessed in Nov 2019 for the year of 2017 any advise would really appreciated. thx.

 

[YVR123]

If he is updating his tax return for legit income that he missed to report back in 2017, then he is fine with reassessed NOA.

BUT as others have adviced, do not make up income. CRA could audit his income in the previous years.

e.g. if he is adding income from tips from 2017 and if he is still a waiter and still getting tips, then he needs to update that as source of income for all years (e.g. 2017, 2018...etc)

 

[alijumani]

If he is updating his tax return for legit income that he missed to report back in 2017, then he is fine with reassessed NOA.


BUT as others have adviced, do not make up income. CRA could audit his income in the previous years.

e.g. if he is adding income from tips from 2017 and if he is still a waiter and still getting tips, then he needs to update that as source of income for all years (e.g. 2017, 2018...etc)

He was working part time on cash incentives only in 2017 after that he is on payroll and paying taxes properly.

I am not sure if he can proof the change in income as he was getting cash

 

[YVR123]

He was working part time on cash incentives only in 2017 after that he is on payroll and paying taxes properly.

I am not sure if he can proof the change in income as he was getting cash

He still need to provide some kind of proof if he's been asked. (bank account balance... or something like that)
Or who he worked for/name of clients...etc.
And if his clients/employers were committing tax fraud, then CRA will know about them after your friend reported the income.

 

[K0c4nbi3t]

Hi there, He should try do it, CRA has never denied to collect more taxes from us. Look closely at this and ignore sponsorship matters. If CRA wants proofs of income, you dont have, so CRA cant collect taxes from you. How CRA audits your while you have no proofs and CRA denies??? Remember $13000 from a personal taxes do not an issues with CRA, they are watching business and rich people. Unless you claimed 50k then adjusted to 20k to get less taxes paid

 

[canuck78]

If that is his current employer reporting cash payments may trigger investigations into his employer. If he didn’t report cash income CRA could audit many years which could be a very expensive endeavour for your friend. 14k is not a small sum at all and it sounds like is wasn’t just working in cash. We have not seen any information about PGP2020. How does your friend know he will qualify?

 

[canuck78]

Hi there, He should try do it, CRA has never denied to collect more taxes from us. Look closely at this and ignore sponsorship matters. If CRA wants proofs of income, you dont have, so CRA cant collect taxes from you. How CRA audits your while you have no proofs and CRA denies??? Remember $13000 from a personal taxes do not an issues with CRA, they are watching business and rich people. Unless you claimed 50k then adjusted to 20k to get less taxes paid

Actually CRA seems to go after little people more than super rich people. That doesn’t make sense but is common. There is a good risk CRA could look into both the person and the company paying it’s employee in cash.

 

[K0c4nbi3t]

Actually CRA seems to go after little people more than super rich people. That doesn’t make sense but is common. There is a good risk CRA could look into both the person and the company paying it’s employee in cash.

I re-claimed $13k and CRA even did not ask for any proofs. Reassessed and asked me pay $6k within 14 days. If they denied, $6k taxes never go to their pocket

 

[alijumani]

I re-claimed $13k and CRA even did not ask for any proofs. Reassessed and asked me pay $6k within 14 days. If they denied, $6k taxes never go to their pocket

Adding income by $14000 will be done by an accountant. However, the real question is what if IRCC suspect and notice there was an increase in income for year 2017 right before applying for PGP invite? Can IRCC question applicant after seeing re assessment date was in Nov 2019 and ask reason why income was reported to CRA after 2.5 years and what is the source of income ?

 

[canuck_in_uk]

Adding income by $14000 will be done by an accountant. However, the real question is what if IRCC suspect and notice there was an increase in income for year 2017 right before applying for PGP invite? Can IRCC question applicant after seeing re assessment date was in Nov 2019 and ask reason why income was reported to CRA after 2.5 years and what is the source of income ?

Yes, IRCC can question whether income is genuine or not.

 

[alijumani]

Yes, IRCC can question whether income is genuine or not.

I guess he should wait till next year and apply with 2018, 2019 and 2020 income. Its better to wait for one more year rather then get banned for misrepresentation.

 

[deerestlovelybear]

Inflating income for PGP is a serious offend and if there is any doubt on the income source and if it is too obvious like this, an investigation maybe triggered which not only delay application for several years but if found guilty they will ban the sponsorship forever due to fraud and misrepresentation and the sponsor maybe liable for criminal charges as well. If it is so easy to just pay a few K taxes and qualify for pgp income then there will be thousands of people jumping queue like this, they are very very serious about this now

 

[K0c4nbi3t]

Inflating income for PGP is a serious offend and if there is any doubt on the income source and if it is too obvious like this, an investigation maybe triggered which not only delay application for several years but if found guilty they will ban the sponsorship forever due to fraud and misrepresentation and the sponsor maybe liable for criminal charges as well. If it is so easy to just pay a few K taxes and qualify for pgp income then there will be thousands of people jumping queue like this, they are very very serious about this now

Have you ever seen anybody banned due to this?? Does IRCC prohibit to do this??

 

[canuck_in_uk]

Inflating income for PGP is a serious offend and if there is any doubt on the income source and if it is too obvious like this, an investigation maybe triggered which not only delay application for several years but if found guilty they will ban the sponsorship forever due to fraud and misrepresentation and the sponsor maybe liable for criminal charges as well. If it is so easy to just pay a few K taxes and qualify for pgp income then there will be thousands of people jumping queue like this, they are very very serious about this now

Nobody would be banned from sponsoring or face criminal charges. Stop making stuff up .