Who did you pay fees for service to in 2011?

Fees for service reporting is under review by Finance and CRA. This Federal Budget Q&A page hints at changes but this instruction page provides some comfort you won’t be penalized…yet, for failing to comply. If in doubt, review the instructions: or contact Trust Compliance by contacting CRA.
There's change in the wind. Have you heard a rumor that fees for service will be required to be reported on a T4A yet? It was considered in the Federal Budget and CRA has a Q&A page that outlines their thoughts prior to a review, which has yet to be completed.

In preparation for change, in 2011 T4A Box 048 was added, breaking out from Box 028 what was always a bit confusing as it encompassed a number of types of income. We're advised that until the review is complete, no one will be penalized for not complying with the reporting requirements that are under consideration. 
I suspect that this reporting of fees for service won't include your hair salon payments or your car repairs, but will likely include payments you make from your business accounts to people who provide a combination of services and goods to your business, similar to the reporting requirements for construction work currently in place on a separate form.

So if you hire someone to fix your computer, maintain your property, clean your house and you have a home office,in essence everyone who is self-employed, not corporate, you'll be required to report how much you paid them net of GST/HST. 

Between this reporting, and capturing all of the potential payments to the other major underground economy, in the form of the arts and fitness credits for children, CRA will be taking another major swack at whittling away at the viability of remaining in the underground economy. 

What I find sad about the underground is that once you're there, it's so hard to climb out, and it's next to impossible to grow your business to succeed as that will attract too much notice.  It's like being labelled as the welfare cousin. Everyone wants to make sure you're ok because it's in their best interest in some twisted way, but they know they are keeping you in check because you can't ever truly compete for a share of the market.  Except that's a fallacy because the underground is a huge share of the market, it's just made up of so many tiny parts.

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