H&R Block Canada Indicates That The Tax Man Will Focus On The Gig Economy & Confirms What We Have Been Saying For The Last 5 Years

March 06, 2023
H&R Block Canada Indicates That The Tax Man Will Focus On The Gig Economy & Confirms What We Have Been Saying For The Last 5 Years

Well better late than never is what we like to say.

We have been consistently ahead of the "experts" in a variety of different sectors.

We are seeing H&R Block play catch up to what we have been saying for the last 5 years. The point is not debatable, as there is time and date stamping on every post we make on our website and 3rd party websites like LinkedIn. We know for a fact that H&R Block is following our content on LinkedIn as evidenced by their engagement on a number of posts.


H&R Block Canada has done an extensive survey on the economic realities facing the average Canadian tax payer

They have confirmed everything we have been saying about the Gig Economy in Canada for the last 5 years when we first reported on it : https://www.linkedin.com/feed/update/urn:li:activi...

What is interesting is that H&R Block has confirmed our analysis that Statistics Canada has vastly underestimated the size of the Gig Economy : https://www.linkedin.com/feed/update/urn:li:activi... & https://www.linkedin.com/feed/update/urn:li:activi...


H&R Block’s analysis confirms the proportional analysis we have done and is reflected in the US given the following :

  1. 2016 - 31% Of US Labour Force Derived Some Or All Of Their Income From The Gig Economy
  2. 2017 - 34% Of US Labour Force Are In The Gig Economy
  3. 2018 - 36% Of US Labour Force (57 Million Americans) Are In The Gig Economy
  4. 2022 - 41% Of US Labour Force Are In The Gig Economy
  5. 2022 - 78% Of North Americans Are Looking For Extra Income To Relieve Financial Stress & 25% Looking To Gig & Side Hustle Work


H&R Block Survey Results Are As Follows :

  • 28% of Canadians (8,746,000) have income from a gig job / side hustle vs 13% in 2022
  • 85% of Canadians are concerned their income is not keeping pace with inflation
  • 28% of adult Canadians report taking on a gig job to boost their incomes (up from 13% in 2022)
  • 74% of gig workers say it's a side hustle in addition to their primary employment
  • 26% of gig workers say it is their primary source of income
  • 63% of gig workers cite concerns over rising inflation as a key motivator
  • 23% don't have a clear understanding of the tax implications of gig work
  • 20% report taking on gig work over the last 12 months
  • 15% of Canadians are considering gig work in the future
  • Alarmingly Gig workers aren’t going to adhere to tax laws
    • 49% willing to risk not declaring all of their income
    • 44% would be willing to risk not declaring any of their side hustle income


Given the above statements mobilityView believes that it is highly likely that at least 49% will claim deductions that are inflated or that they are not entitled to claim.


In order to be a Gig Worker/Side Hustler, Contractor/Freelancer or Consultant the one thing that everyone must have is a Smartphone and a Wireless Plan

.

CRA Has Changed Smartphone Deductions For Gig Workers & Employees

Video Is True Of Employees As Well Per Jamie Golombek (National Post) Warning To All Canadians Of Change In Tax Code On Smartphones Dating To 2016

CRA Specifically Targeting Gig Workers & Their Smartphone Deductions

Tim Cestnick (Globe & Mail) called this out 2 years ago

Get Up To $6,000 In Retroactive Tax Deductions Or Tax Free Reimbursement

CRA lets you go back up to 6 year and amend/change your taxes to claim deductions you forgot

Save $1,500 / Year By Not Carrying 2 Smartphones (Business & Personal)

Why carry 2 phones? It's ridiculous and very expensive!

Get Up To A $1,000 Tax Deduction For 2023

Use our Mobile Cost Management (MCM) App In 2023


The CRA Has Made It Very Clear :

  1. Personal usage of a company asset is a taxable benefit
  2. Personal usage of a company provided Smartphone & company provided Wireless Plan is a taxable benefit
  3. Only the documented and substantiated business portion of the HST of a company provided Smartphone & Wireless Plan may be claimed as an HST ITC (Input Tax Credit)
  4. Only the documented and substantiated business portion of your personal Smartphone & Wireless Plan may be claimed as a tax deduction as an employee
  5. Only the documented and substantiated business portion of your personal Smartphone & Wireless Plan may be claimed as an expense to offset your Gig/Side Hustle Income
  6. They are specifically targeting Gig Workers and Side Hustler
  7. Smartphone & Wireless plan are now part of the standard audit letter
  8. The CRA does go after Nickles & Dimes and one shouldn't think differently
  9. Dramatic increase in 2021 auditing activity of Smartphones & connectivity costs confirmed by Canada's s oldest & most prestigious tax training firm
  10. Level of auditing activity on businesses in 2022 has shot up
  11. 16,000 Employees Added To The CRA In 2022 & Employment Up 37% Since 2015



Time Machine & MCM App Are Fully Tax Deductible


Click Here For A Free 30 Day Trial Of Mobile Cost Management (MCM) use promo code : "Gig"


Want To Have mobilityView Provide You Free Tax Filing?

Register To See If You Qualify By Sending An Email To :

Marketing.Support@mobilityView.com

Subject : FreeTax Filing



Would You Like To Earn More Money?

Join mobilityView's Ambassador Program (Referral)

Send Email To :

Marketing.Support@mobilityView.com

Subject : Ambassador


Our Mobile Cost Management (MCM) Solution :

  1. 70% More cost effective than a Stipend for Smartphone Reimbursement
  2. 75% More cost effective than a Company provided phone
  3. Keeps companies labour law and tax law compliant
  4. Protects companies against class action lawsuits by their employees for failure to reimburse or adequately reimburse
  5. Keeps employees reimbursed & happy in a tax efficient lower cost way than a stipend or company provided phone
  6. Aligns your smartphone reimbursement policy to your mileage reimbursement policy. Tax authorities globally have required a mileage book for years and now require a "mileage book for connectivity costs" denoting the business vs. personal usage & cost



30 Second Explainer Videos On How How We Lower Costs For Gig Workers/Employees & Employers :


Employee WFH & BYOD For Future Reimbursement : https://lnkd.in/dvdupVwz
Employee WFH & BYOD For Reimbursement In The Past : https://lnkd.in/gJWtpDpa

Employer WFH / BYOD Cost Savings : https://lnkd.in/dZ3wU9bW

Employee & Employer Cost Sharing For Win/Win : https://lnkd.in/grWgF8Tp
Carrying 2 Phones? Save $1,500 Annually On Cell Bills : https://lnkd.in/gCZXXXSM

Tax Deduction Changes For US Gig Workers : https://lnkd.in/ggAfRWhc
US Gig Workers Can Get Up To $3,000 In Retroactive Tax Deductions : https://lnkd.in/gd6DUbSN

Tax Deduction Changes For Canadian Gig Workers : https://lnkd.in/gHFXa5nC

Canadian Gig Workers Can Get Up To $6,000 In Retroactive Tax Deductions : https://lnkd.in/gHr47hr9

Tax Deduction Changes For Australian Gig Workers : https://lnkd.in/geT95ZTM

Gig Worker & Employee Tax Deduction/Reimbursement For Previous Years : https://lnkd.in/dG5MPP3X
Canadian Employee Tax Deduction Up To $1,000 : https://lnkd.in/gUhm-chC

Non-Canadian Employee & Gig Worker tax deduction : https://lnkd.in/gD5eEke

Get $30 to $80 / Month Tax Free In The Form Of Reimbursement Or Tax Deduction : https://lnkd.in/gQzB8ujx

Smartphone global tax trends : https://lnkd.in/dbvArumk




Article Sources :

  1. H&R Block Canada Survey : https://www.newswire.ca/news-releases/nearly-half-...
  2. 2016 US Stats : https://www.linkedin.com/feed/update/urn:li:activi...
  3. 2017 US Stats : https://www.linkedin.com/feed/update/urn:li:activi...
  4. 2018 US Stats : https://www.linkedin.com/feed/update/urn:li:activi...
  5. 2021 US Stats : https://www.linkedin.com/feed/update/urn:li:activi...
  6. 2022 US Stats : https://www.linkedin.com/feed/update/urn:li:activi...
  7. Personal usage of a company asset is a taxable benefit : https://www.linkedin.com/feed/update/urn:li:activi...
  8. Personal usage of a company provided Smartphone & company provided Wireless Plan is a taxable benefit : https://www.linkedin.com/feed/update/urn:li:activity:6889224397001904128/
  9. Only the documented and substantiated business portion of the HST of a company provided Smartphone & Wireless Plan may be claimed as an HST ITC (Input Tax Credit) : https://www.linkedin.com/feed/update/urn:li:activity:6745342728357457921/
  10. Only the documented and substantiated business portion of your personal Smartphone & Wireless Plan may be claimed as a tax deduction as an employee : https://www.linkedin.com/feed/update/urn:li:activi... & https://www.linkedin.com/feed/update/urn:li:activi...
  11. Only the documented and substantiated business portion of your personal Smartphone & Wireless Plan may be claimed as an expense to offset your Gig/Side Hustle Income : https://www.linkedin.com/feed/update/urn:li:activi...
  12. They are specifically targeting Gig Workers and Side Hustler : https://www.linkedin.com/feed/update/urn:li:activi...
  13. Smartphone & Wireless plan are now part of the standard audit letter : https://www.linkedin.com/feed/update/urn:li:activi... & https://www.linkedin.com/feed/update/urn:li:activi...
  14. The CRA does go after Nickles & Dimes and for something as small as a bus pass : https://financialpost.com/personal-finance/when-th...
  15. Dramatic increase in 2021 auditing activity of Smartphones & connectivity costs confirmed by Canada's s oldest & most prestigious tax training firm : https://www.linkedin.com/feed/update/urn:li:activi...
  16. Level of auditing activity on businesses in 2022 has shot up : https://www.linkedin.com/feed/update/urn:li:activi...
  17. 16,000 Employees Added To The CRA In 2022 & Employment Up 37% Since 2015 : https://www.linkedin.com/feed/update/urn:li:activi...
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