How to receive money on PayPal without paying taxes in Canada?

[artx_doyle]

My father does business in Ukraine. I am an international student in Toronto.

He is selling goods on eBay internationally and I wants me to receive payments on my PayPal.

I contacted PayPal and they told me that they send reports about users who reach 200 transactions or $20,000 a year. In our case, we will reach and go over that point.

When I contacted Canada Revenue Agency, they told me that most likely it will be considered as personal income and I would need to pay taxes; however, they were not sure about that because the case is unusual. Also, I was told that if I receive money from my father directly - it will be considered as gift.

Do I need to pay taxes? Are there any ways I can receive money from eBay without paying taxes?

Thanks!

Key points:

• My father owns a business in Ukraine;
• My father sells goods world wide on eBay;
• My father wants me to receive money from people's purchases;
• I am an international student in Canada;
• I might or might not use the money.

[reallynicestamps]

Your father has a Paypal account for business.

You have a Paypal account.

Your father wants to transfer money to you by Paypal.

Since this is NOT a business deal, he can use the Friends and Family service.

There is a $5000 maximum on how much a single payment can be.

But he can send you money weekly or monthly up to that amount.

Fees are lower and there is no GST on the money because you are not getting money for goods or services.

If you are also selling on eBay, you will pay tax on payments from your customers.

But not your father.

You will also be required to file income tax on the allowance your father sends you, but that is a totally different question.

I'm not a tax accountant.

[artx_doyle]

I don't think you understood my question correctly.

My father sells goods on eBay and wants to use my PayPal to receive payments. When I receive payment, do I need to pay taxes to Canada?

But still, thank you for the reply!

[reallynicestamps]

Yes. You will, because it will be income.

Actually, does your student visa allow you to work in Canada?

Selling online is considered work and getting such payments for items sold would appear to be running a dropshipping business.

Is there some reason why your father cannot receive the Paypal payments himself? I know Turks cannot take Paypal.

[artx_doyle]

Yes, I have everything that allows me to work in Canada legally.

PayPal doesn't work well in Ukraine.

"[...] appear to be running a dropshipping business", if it is considered as a business, does it need any kind of registration?

As an international student, do I pay less taxes?

[reallynicestamps]

You have specific deductions as a student, those have changed since I was in university and DD paid her own way,so I have no idea.

If you(r father) sells more than $30,000 annually (Ontario numbers) you /he would have to register to remit sales taxes (GST/PST/HST).

You don't necessarily have to charge them as a line item, but you have to remit the appropriate amount to the government.

I am not a tax accountant.

@pierrelebel.