# Help!! New to Contracting in Toronto



## zRichy (Jun 28, 2011)

Hi all

I'm new to Toronto(from England) and picked up a job doing desktop support. 

It's only a measly 18 dollars an hour but for a big bank so I'll do it for a month until I find something better. 

Anyway I understand I need an incorporated company. The agency sent me this link (is it a good link? http://www.apintertrust.com/incorporate_in_canada/ontario_incorporation.htm) 

I need to know what I can do to "milk the system" as a contractor over here. I know a friend back home contracted and he did things like put tvs, clothes through on the "company budget" which basically became "free money". Apparentally totally legit? 

What can I take advantage of in Toronto? (To stretch my measly wage, lol) 
I'm all a bit confused about the whole thing really. Maybe my friend was just doing shady stuff back home which is illegal but from looking at the contracting culture it doesn't the same way.

*edit:add link & typos


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## marina628 (Dec 14, 2010)

There are people here who would love to start at $18 per hour ,if all you want to do is milk the system go back to UK .


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## HaroldCrump (Jun 10, 2009)

Here we go again....second time today.
Another tax evader, free-loader wannabe.
Is this a special time of year?
Are tax evaders in season?
Can we shoot them?
Do we need a license?


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## larry81 (Nov 22, 2010)

As others said, i suggest you simply go back to UK


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## Plugging Along (Jan 3, 2011)

Okay, I'm going to bite and post because I will give this poster the benefit of doubt because he's not from here, and will assume he is just getting bad information, and is coming here because he wants to be set straight.

First, you can't 'milk' our system. You need to learn what you can LEGITAMATELY deduct. If you are looking to minimize your taxes legally, that's fine, if you're looking to not pay taxes that you should be paying, that's different.

As an incorporation, you can deduct expenses that are used directly for your business NOT personal use. So if you need a cell phone for work, that isn't provided, work supplies, computer etc, that would be okay. Anything else is not tax deductable. A TV (or generally anything that has an useful life of over a year) even if it was for your work, is depreciated, and you take CCA on it. 

If you have to pay for parking and require a vehicle during the day (not for commuting to and from work), you can deduct the related expenses.

You can't deduct personal expenses or items legally. I would also say based on your work, you won't have a lot of deductions. I seriously think that if you are going to work in another country and incorporate there, you will need to abide by their laws, and not try to defraud the system.


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## ddkay (Nov 20, 2010)

tbh that doesn't sound legal by any stretch. $18/hr, you really can't complain, standin or not. A person I worked with last summer traveled here from Cambridge, we both made $15/hr as contractors. He couchsurfed for awhile but then rented a room in a shared flat around Queen/Bathurst for less than 1 paycheque a month (~$500). The other people that lived there were loud and annoying and the aircon was broken so he had to pull icecubes from the freezer and put them behind a fan to sleep at night. But he got by for 4 months. Check out Padmapper if you need a cheaper place to rent.

If by any chance you're in Toronto, I presume your job is transferable. PM me, I'm pro at desktop support. Anyone can do that. Maybe I can squeeze in an interview with your temp agency and make the transition smoother. What do you say yeah?


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## zRichy (Jun 28, 2011)

Wow. Amazing amount of negativity. 

I didn't post to want to tax evade or anything. Just checking legal things I can do (for instance back home you can get gas for your car back as long as you have receipts). 

I wouldnt want to do anything illegal as my fiance is from Montreal. Hence why I was asking if what my friend did is shady (illegal). 

And again sorry for saying 18 is measly...I know I'm grateful to have a job. I have.been offered more here though (22 to 24) but they were a bit far away from downtown. 

By "milk" I meant "get all im legally entitled to" - nothing more but I understand it may have come across as wanting to evade tax and then head home.
Thanks, advice is appreciated.


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## ddkay (Nov 20, 2010)

Now and then someone drops in the forum to ask for ways to skirt tax agencies, of course you can't blame a law abiding citizen for negativity if that's what they think you meant to do. T'was a misunderstanding. Moving on...


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## zRichy (Jun 28, 2011)

Oops double post.


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## Jon_Snow (May 20, 2009)

Well, what do you expect when your first post on this site basically starts out with "what can I do to "milk the system?""... you have to admit, not a great way to make your debut here. The long time members of this site guard its integrity quite seriously.


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## Toronto.gal (Jan 8, 2010)

zRichy said:


> Out of 5 replies two people told me to pi*s off, one offered to shoot me....


You mean you didn't know Canadians were dangerous, honest & friendly? 

Harold, you made me laugh.


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## Four Pillars (Apr 5, 2009)

I would suggest you find an accountant - they aren't that expensive. 

They can help you with your questions far better than an internet board, since we're mostly not tax professionals and we don't have all your info.

No point in crying over spilt milk.


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## HaroldCrump (Jun 10, 2009)

I know the _best_ tax accountants, specializing in tax optimization strategies, esp. for non residents.
Their address is:

St. Catharines Tax Services Office
32 Church Street
Post Office Box 3038
St. Catharines ON L2R 3B9

Phone numbers are:
Tel.: 905-984-4830
Tel.: 1-866-809-6841 (toll free)
Fax: 905-984-4829

All the best!


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## zRichy (Jun 28, 2011)

Toronto.gal said:


> You mean you didn't know Canadians were dangerous, honest & friendly?
> 
> Harold, you made me laugh.


Heard its just a Toronto thing


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## zRichy (Jun 28, 2011)

Jon_Snow said:


> Well, what do you expect when your first post on this site basically starts out with "what can I do to "milk the system?""... you have to admit, not a great way to make your debut here. The long time members of this site guard its integrity quite seriously.


"milk the system" means, albeit in a crude way, "get all you're entitled to" as you won't get a pension/dental/health/ etc.

To be fair I can't imagine a site staying up long offering tax evasion advice -_-


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## humble_pie (Jun 7, 2009)

just wondering what is "contracting" ?

doesn't sound like OP is a bricks-mortar-lumber-nails-studs kind of guy.


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## zRichy (Jun 28, 2011)

humble_pie said:


> just wondering what is "contracting" ?
> 
> doesn't sound like OP is a bricks-mortar-lumber-nails-studs kind of guy.



When you're paid by the hour and not a permanent employee (temping I guess?) 
Not sure what that means 

P.S. I've never done contracting/self employment/temp work ever..


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## Cal (Jun 17, 2009)

A consultation with a Canadian accountant should bring you up to speed on things here tax wise.

P.S. bring your friend with you that you referred to in your initial post.


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## kcowan (Jul 1, 2010)

Detailed scrutiny of your business deductions will only be done if you are audited by the CRA. Let your conscience be your guide!


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## zRichy (Jun 28, 2011)

Cal said:


> A consultation with a Canadian accountant should bring you up to speed on things here tax wise.
> 
> P.S. bring your friend with you that you referred to in your initial post.


Ok I'll just do that. Think I'm going to look for a perm job...simpler life! 

Annoying that to incorporate a company it costs $500 though! -_-


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## Charlie (May 20, 2011)

I don't know why you'd need (or want) to incorporate given what you've posted??


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## FrugalTrader (Oct 13, 2008)

Not only is there a cost to incoporate, there are others fees and paperwork. Annual filings, tax preparation, T5, T4, keeping track of your income/expenses etc etc. Just for the accountant to file can cost $1-$2k per year for a relatively basic private corp.


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## Charlie (May 20, 2011)

Here's the CRA guide on self employment stuff. Tells you a bit about how to 'milk' the system -- gently.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/menu-eng.html

Again -- can't see incorporation being beneficial unless there's some twist since you're coming from England??? There are no deductions available to corps that are not available to individuals. And $500 to incorp, plus corporate year end fees and hassles for a 1 month $18/hr job seems foolish (to me).


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## Plugging Along (Jan 3, 2011)

You may want to confirm if you really need to be incorporated or not. Some companies require it, and if that's the case you are stuck. However, you can often act as a contractor/consultant without being Incorporated. You need to confirm that with the company you're consulting with.

If you aren't planning to do this as a career (consulting), and this is an interm step, it's really not worth Incorporation.

I do know that some of the consulting I have done, from a liability standpoint, the company hiring with only deal with incorporations. This is not a legal or tax requirement though over all.


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## zRichy (Jun 28, 2011)

thanks some great feedback. On another site someone said it really wasnt worth incorporating for anything less than 60k
I did ask if I needed to be incorporated and I don't have to be so score!


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## FrugalTrader (Oct 13, 2008)

If you don't "need" to incorporate, the primary financial benefits are if you have retained earnings in the company. If you simply withdraw everything every month, then you might be better off simply doing business under a sole prop.


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