The tax man has new rules to snuff out under-the-table side hustling.
Driving the news: After a 2024 change in tax laws, digital platform operators, like Uber and DoorDash, have until Jan. 31 to report info about workers on their apps to the Canada Revenue Agency (CRA) — including how much income an individual made on the platform in a given year.
- The requirement will apply only to users who partook in over 30 “activities” (i.e., the number of sales or deliveries made) and earned over $2,800 in a year.
Why it matters: By shifting more of the reporting onus to companies, the CRA aims to cut down on under-reported income, which is prevalent in gig work and side hustles. Nearly a third of Canadian gig workers said they were willing to flub their income, per a 2024 survey.
- Under-reporting isn’t always malicious though, as gig workers might be unaware of what taxes they must pay on what income — this law should help clarify things.
Big picture: Gig work has become a prevalent type of employment in Canada. Statistics Canada found that 871,000 workers cited it as their main job in the fourth quarter of 2022. That number is likely even higher now, creating a sizable chunk of potential tax revenue.—QH