Stealth Tax Obligations in Canada

[leamprotan]

Hello everyone,

Looking for a method to get my Canadian stealth account setup under a Canadian corporation.

I have been running a stealth account for the last 6 months under a friends information. I want to change it over to a corporation and change the banking info so it is not under the friend anymore. My personal Amazon seller account is deactivated.

Can I open a corp in my name and use it for the account or is there a check on the corporation details that Amazon can do that will link it back to me? Does the corporation need to be in the friends name? Could the friend be a 1% owner in the corporation and the other 99% for myself if Amazon does do a check will they see both of us?

Looking for advice from others and what you have done to overcome this.

Thanks!

[SaiJin]

Or ask the friend to file taxes for you and you give him a % of the profit.

[rsot]

I haven't done this for a Canadian stealth account - I'm sure it's possible but changing the info is going to require paperwork fairly sure

[Phd]

Set up the Corp any way you want, register for HST#.

A corp can have many different businesses under it. File taxes from all online activity under that corp.

We have been set up this way since 2006. At one time we had 8 different online accts tied to the corp. As long as you file your taxes, government doesn't really care. We even passed 2 HST audits with this setup.

If you don't have to change your AZ acct details, then don't. It opens too many possibilities of re-verification.

Best of luck.

PhD

[leamprotan]

Originally Posted by Phd

Set up the Corp any way you want, register for HST#.

A corp can have many different businesses under it. File taxes from all online activity under that corp.

We have been set up this way since 2006. At one time we had 8 different online accts tied to the corp. As long as you file your taxes, government doesn't really care. We even passed 2 HST audits with this setup.

If you don't have to change your AZ acct details, then don't. It opens too many possibilities of re-verification.

Best of luck.

PhD

Thanks for your reply. Trying to figure out the process of how I would do what you've suggested.

So I would open a new corp under my name (not the stealth accounts name). Register for HST #. Use this new corps information on Amazon for the tax interview and input the HST #?

Or would I just keep all amazon account details the same and just input the HST#?

[Phd]

Originally Posted by leamprotan

Thanks for your reply. Trying to figure out the process of how I would do what you've suggested.

So I would open a new corp under my name (not the stealth accounts name). Register for HST #. Use this new corps information on Amazon for the tax interview and input the HST #?

Or would I just keep all amazon account details the same and just input the HST#?

Set up corp. Any name or number is good.
Register for HST for corp.
Keep corp basically invisible from AZ.

Do not change anything on AZ. Apply for HST for AZ business. File HST for this business as zero every year.

File HST for all businesses under corp.

You would be setting up your AZ business as a sub business under the umbrella of the corp.

PhD

[rsot]

Originally Posted by SaiJin

Or ask the friend to file taxes for you and you give him a % of the profit.

Phd's process takes a bit more time but is more separate from the friend for long term operations

[leamprotan]

Originally Posted by Phd

Set up corp. Any name or number is good.
Register for HST for corp.
Keep corp basically invisible from AZ.

Do not change anything on AZ. Apply for HST for AZ business. File HST for this business as zero every year.

File HST for all businesses under corp.

You would be setting up your AZ business as a sub business under the umbrella of the corp.

PhD

Ok, so under the tax settings on my amazon account is the only thing I would change and input the HST number that I got from the new corp here. Leave all other account details the same.

Not sure how the structure of this corp would work - is it easier to just have two different corps? I already have one so could make a new one for this account with a seperate HST number and then still funnel it all through the main corp.

I also want to change this accounts CC and deposit methods eventually to the new corp so would have to change some of the info.

Basically I want to try to get all of the account info (or the majority) of it out of the friends name and into the corp.

[rsot]

Originally Posted by leamprotan

I also want to change this accounts CC and deposit methods eventually to the new corp so would have to change some of the info.

Basically I want to try to get all of the account info (or the majority) of it out of the friends name and into the corp.

Step by step process as Phd indicated - that being said, nothing with AZ is 100%...so you have to be thorough and go slowly

[leamprotan]

Originally Posted by rsot

Step by step process as Phd indicated - that being said, nothing with AZ is 100%...so you have to be thorough and go slowly

So for example, update deposit method, wait 3 months, update HST number wait 3 months, update CC. What kind of time period should I be looking at here? Account is just over 6 months currently.

[rsot]

3 months feels long - i'd say 2-3 weeks feels more in order but I haven't done this actively so I'm just speculating

[Phd]

Originally Posted by leamprotan

So for example, update deposit method, wait 3 months, update HST number wait 3 months, update CC. What kind of time period should I be looking at here? Account is just over 6 months currently.

Yes, one step at a time. If an update is done, and you have not heard back from AZ in 2 weeks, move onto next item.

Keep in mind, each change may trigger a verification from AZ.

PhD.