Cash Jobs & Bank Accounts

knowledge

knowledge

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Hey guys,

So I have this "friend" (lmao) who's never had a cash job before and is sort of paranoid/knows nothing about how this works. The only thing he knows is that if you deposit over 10k for most banks, they have to fill out some report/people are notified. While he's definitely not depositing anything close to that much, he wonders whether regular, unexplainable relatively big deposits would set off any red flags that could possibly get him into some trouble somewhere down the line?

What do construction workers, waitresses, etc. usually declare on their income taxes? ('cause let's face it, it seems very unlikely that they'd declare the full amount).

I know that opening a tax-free savings account is one solution, but I'm wondering if there's anything else

My friend says thanks in advance

And no he doesn't sell drugs. lol
 
Transactions of 10k or larger are reported to Fintrac by the bank, insurance, accountant etc. This is to prevent money laundering, track proceeds of crime, terrorist activities, etc by default. With that said, it is the responsibility of the person / entity you are dealing with to report suspicious activity.

If you were to deposit 9k on a semi-regular basis and were evasive on where the money came from then that would probably be reported.

If you are a client in good standing with the bank, deposit cash and explain through normal conversation at the time of deposit where the money came from (if the conversation is lead that way) then it probably wouldn't be reported.

The goal of Fintrac reporting is to capture suspicious financial activity that finances crime. Cash jobs are not part of the scope of this financial reporting.

Just because you have been reported for transactions doesn't mean that anything is going to come of it. The reports to Fintrac aren't usually scrutinized one off. The information is aggregated to track movement of money and is used in conduction with other mechanisms such as terrorist lists.
 
Stop selling drugs!
 
At today's low interest rates, why deposit the money? Just rent a safety deposit box for $30 a year and keep the money in there...
 
sircastic said:
Transactions of 10k or larger are reported to Fintrac by the bank, insurance, accountant etc. .
Click to expand...

From (a friend's) personal experience.........$5K is the new $10K.

knowledge said:
Hey guys,

So I have this "friend" (lmao) who's never had a cash job before and is sort of paranoid/knows nothing about how this works. The only thing he knows is that if you deposit over 10k for most banks, they have to fill out some report/people are notified. While he's definitely not depositing anything close to that much, he wonders whether regular, unexplainable relatively big deposits would set off any red flags that could possibly get him into some trouble somewhere down the line?

What do construction workers, waitresses, etc. usually declare on their income taxes? ('cause let's face it, it seems very unlikely that they'd declare the full amount).

I know that opening a tax-free savings account is one solution, but I'm wondering if there's anything else

My friend says thanks in advance

And no he doesn't sell drugs. lol
Click to expand...

1)Open accts at 4 or five major banks.
2)Keep your cash deposits to amts under $2500.
3)Use instant tellers for amts under a grand.
4)Give cash to family / friends in exchange for cheques.
5) etc, etc, etc.

Considering it's taken you "X" amount of time to accumulate "too much" cash - don't be in too much of a hurry to deposit it all at once.
 
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knowledge said:
Hey guys,

So I have this "friend" (lmao) who's never had a cash job before and is sort of paranoid/knows nothing about how this works. The only thing he knows is that if you deposit over 10k for most banks, they have to fill out some report/people are notified. While he's definitely not depositing anything close to that much, he wonders whether regular, unexplainable relatively big deposits would set off any red flags that could possibly get him into some trouble somewhere down the line?

What do construction workers, waitresses, etc. usually declare on their income taxes? ('cause let's face it, it seems very unlikely that they'd declare the full amount).

I know that opening a tax-free savings account is one solution, but I'm wondering if there's anything else

My friend says thanks in advance

And no he doesn't sell drugs. lol
Click to expand...

Buy a safe and bolt it down to your floor. Problem solved
 
Dealing in cash, your unlikely to realize your full credit potential. Anytime I've ever borrowed, the bank has asked for a copy of my most recent notice of assessment. You may lose out on CPP benefits in the future as well. Dealing in cash often leads to greater bad debts as you often have little legal recourse. Worst of all, you'll always have that dark cloud hanging over your head (the taxman) that may put you in financial ruin and perhaps jail. The trap - "It used to be a little but a little wouldn't do it so a little got more and more.". Lastly, if you ever want to sell your business, the value may suffer or it might be unsalable because you don't have proof of profitability.
 
This is called money loundry :lmao: Why ywould one make such complicated and suspicious things with his own clearly gained money???
Gary said:
From (a friend's) personal experience.........$5K is the new $10K.



1)Open accts at 4 or five major banks.
2)Keep your cash deposits to amts under $2500.
3)Use instant tellers for amts under a grand.
4)Give cash to family / friends in exchange for cheques.
5) etc, etc, etc.

Considering it's taken you "X" amount of time to accumulate "too much" cash - don't be in too much of a hurry to deposit it all at once.
Click to expand...
 
knowledge said:
I know that opening a tax-free savings account is one solution,
Click to expand...

:lol: no


I'm pretty sure you're young, so getting paid a little in cash isn't a big deal at your age. You won't be making huge deposits and nobody is gonna give a damn at the bank. What you report to the government is your problem, not theirs. They just want your money.

Where you WILL run into problems (eventually) is credit. Like promac stated, when all you get paid in is cash, and you don't ever declare most of it, you'll never be able to get credit. The world runs on credit... cars, houses, furniture and appliances, even rental apartment applications... they all require credit checks and proof of income. You can fake this kind of stuff for a little while but eventually you're screwing yourself.
 
It depends on the teller to be honest. It is usually 5k and they require a receipt of some sort of where you got the money from. Some want a receipt for less than that. I was actually at the bank and they caught someone of money laundering when he tried to deposit 1k. If your account looks suspicious, you'll be questioned.
 
Keep your deposits at or below 3K. Deposit maximum 2 times a week. Before you deposit the next week transfer what ever you deposited to one of many of grandma or grandpa's account's or credit card's. Most senior accounts will avoid monthly fees (rather then getting several accounts in your name). This method usually keeps tellers from questioning deposits. If the teller ask where you get all this money from tell them your a stripper, or some sort of performer.

If depositing in excess of 10K get grandma or grandpa to write you a gift receipt.
 
Don't make a pattern for deposits. Keep it low and you should be good. Honestly unless if you're laundering I don't think your friend is going to be doing $2k+ deposits a week.

Also, If CRA audits your friend and sees his accounts they can ask him how he accumilated all that wealth. Good to have money go through legitimate family members as loans etc... pay them cash
 
Keep the cash and use it for your expenses do not deposit it or you will be screwed if audited. Also file your taxes and declare all the legitamate money you earn, you can still easily get caught if you are audited and you have too much stuff for you income level.
 
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