Illegal Income

[MoneyGal]

Just use the 'other income' category. Self employment income is a broad category, I don't think you have to state what your occupation or how you derived the income in your return.

But you do. I don't know what the industry code for "drug dealer" is. "Other personal services not otherwise specified"?

[Sampson]

A drug dealer who wants to report income out of fear of a net worth audit should probably be able to come up with a few phony jobs here and there. Look up what reasonable income could be derived from "other personal services" and get a cover. Or develop untraceable gift sources, isn't that what the mobsters do in the movies?

Or simply pay off people within the CRA.

[blin10]

why would a drug dealer want to report anything? just live off spending cash ?

[andrewf]

Become a waiter and declare reasonable cash amounts as tips. Done.

[Charlie]

You don't need receipts to support income (only deductions). Your income is taxable and could be reported as "other services" I suppose. You might have issues with any deductions you want to claim since illegal payments aren't deductible, and you may have trouble with receipts.

Same capital gains/income rules apply....ongoing sales are income; sale of equipment/client lists/web sites may be cap gains? You may need to verify your Canadian source stuff if you want to claim capital gains exemptions . But it is definitely not exempt.

Wasn't Al Capone convicted of tax evasion?

You may also have an HST issue. Unless your product is....um......medicinal.

Marc Emory...a BC pot advocate, claims he reported his income each year on his tax return.

[Daenerys Targaryen]

I read an Macleans article that was an indepth interview with a high-class prostitute in Toronto, she said she filed her taxes every year and claimed approximately $60,000 a year in income as a "freelance writer'. According to the Macleans artcle the $60,000 was about a third of her actual income and she kept the rest in cash in various safety deposit boxes throughout the city.

I dont know how common or true this practice is amongst those who make thier living from illegal means

[iherald]

Buy a 'gym' and declare income based upon all the members you have. It's an easy way to launder money (or a laundry mat... no pun intended)

[Feruk]

Buy a car wash. Get your wife to run it and "launder" money through it. Watch some Breaking Bad.

[peterk]

Also, smuggle the cash inside skids full of pop with the center case of pop removed, so none of your car wash employees suspect anything.

[appleseed123]

serious guys, question answered at "other personal services" answer