Q.I make a few bucks from my hobby. Do I have to declare this income?
The authorities doesn’t care for the amount of products you sell or even that you take the particular activity as your hobby, they will consider it as your business so whatever money you make from your hobby will be seen as your business revenue.
In this situation you will have to report the income you earn from your hobby by completing Form T2125(Statement of Business or Professional Activities) included with the T1 income tax package.
Q.How long do I have to keep my business records?
If you have filed a tax appeal or objection the Agency also cautions that you keep your records until the problem or issue is resolved, and until the time limit has expired for filling any further objection or appeal(which means keeping records for a specific accounting period longer than 6 years).
Please note that you need a written permission from the director of your tax services officer if you want to discard your business records before the minimum period i.e. 6 years is over.for this purpose the T137 (Request For Destruction of Books and Records) is used.
Q.How is an Internet business taxed?