You may choose to accept cash for goods or services if you own a business. Nevertheless, you must report the cash as income and pay applicable taxes to the Canada Revenue Agency (CRA).
Please read link no 4 for your questions regarding cash payments
It's in your own best interest to file even if you're not required to, for the following reasons:
- You would like a refund.
- Several federal and provincial benefit programs are based on the information on your tax return. You may still be eligible for the GST/HST Credit, or for provincial benefits such as the Ontario Trillium Benefit despite having no income.
- As soon as you earn any income, your RRSP contribution limit increases. Even if you don't expect a refund, the more RRSP contributions room you have, the better.
- If you are claiming the Canada Workers Benefit (CWB) or if you wish to continue receiving the Canada Child Benefit (CCB)
- When you attend school and have eligible tuition fees, you must declare the amounts on your tax return, even if you don't use them. The credits might not be needed this year, but in order to carryover or transfer them, they must be reported on your current-year tax return.
- You or your spouse may continue to receive Guaranteed Income Supplement (GIS) on your Old Age Security payments.
Please visit the link provided for further clarifications:
- CRA: Should I file my income tax return even if I don't have any income to report?
- TurboTax: Does Your Teenager Need to File an Income Tax Return?
- TurboTax: Who Is Required to File an Income Tax Return?
- TurboTax: Cash Payments, Records and Reporting
Please contact our phone support team or contact us directly on Facebook or Twitter if you require further assistance.