New tax changes will affect Canadians who earn money using online apps

Whether you drive for ride-sharing apps or sell items online, the Canada Revenue Agency (CRA) has implemented changes that will affect you.

According to CRA“The gig economy generally refers to services provided through short-term contracts, freelance work, or other temporary work arranged through an online platform or mobile app.”

Some popular platforms include Uber Eats, Skip the Dishes, and Fiverr, while shared services can include web development, business consulting services, writing and translation services.

New legislation came into effect this year, making it necessary for digital platform operators to report gig worker information to the CRA.

“This new legislation addresses concerns among tax authorities that tax liabilities are not accurately calculated by digital platforms and that the full income of gig workers is not always visible to tax officials,” He releases From tax preparation company H&R Block.

This means that gig platform operators like Etsy, eBay, Poshmark, Airbnb, Vrbo, and Uber must provide information on workers’ income by January 31, 2025.

So, what kind of information will be sent to the TRA?

Platform operators must share workers’ full names, dates of birth, primary addresses, and tax identification numbers (TINs). For most Canadians, tax identification numbers are nine-digit Social Insurance Numbers (SINs). In return, companies must also provide users with a copy of the information shared with the TRA.

Research conducted by H&R Block revealed that in 2024, 9 million Canadians (28 per cent) made money through partying. 32% said they were willing to risk not declaring “any” income, and 43% said they were willing to risk not declaring “all” income so they could pay less in taxes.

Doing so comes with “significant risks” and “effectively violates the law,” warned Yannick Lemay, a tax expert at H&R Block Canada.

“New reporting rules for party platforms require operators to provide identifying information about their users and their related income to the TRA,” he said.

“If these reported amounts do not align with what gig workers declare through their tax returns, this could raise significant red flags with the IRS and result in potential financial penalties.”

To ensure you’re in compliance, the CRA also suggests keeping records of all your transactions.

“Keep track of your income and expenses, including sales to buyers in Canada and other countries,” she advised.

Check on CRA website To learn more about taxes for gig workers.