As the gig economy continues to flourish in Canada, the federal government has introduced new revenue laws to ensure fair taxation and transparency. 

These changes, effective from January 1, 2025, aim to streamline the reporting process for gig workers and digital platforms alike. 

Here's what you need to know:

Key Changes in 2025 

• Mandatory Reporting by Digital Platforms
  Under the new legislation, digital platforms such as Uber, DoorDash, and Etsy are now required to report their workers' income directly to the Canada Revenue Agency (CRA). This move is designed to reduce the chances of underreporting and ensure that all gig workers pay their fair share of taxes.
• Reporting Thresholds
  Not every gig worker will have their income reported. The new rules apply only if you meet both of these conditions:
  • You completed 30 or more activities on the platform in the year (e.g., rides, deliveries, sales, bookings).
  • You earned more than $2,800 through the platform.
• Enhanced Transparency and Accuracy
  With platforms now reporting income details, the CRA will have a clearer picture of your earnings. This reduces the likelihood of unintentional errors and makes it easier for gig workers to reconcile their records during tax season.

Implications for Gig Workers 

• Increased Scrutiny 
  The CRA will now receive direct reports of your earnings from the platforms you use, making it harder to underreport your income. This could lead to audits or penalties if discrepancies are found.
• Importance of Accurate Record-Keeping 
  To avoid any issues, it's crucial to keep accurate records of your earnings and expenses. Make sure your records match the reports sent by the platforms. Keep track of tax summaries, receipts for expenses like gas, internet bills, or office supplies.
• Claiming Eligible Expenses 
  Gig workers can still claim eligible expenses associated with their income. This includes costs from using a platform to sell services, marketing costs, and the cost of materials or services.

The new revenue changes for 2025 aim to bring more transparency and fairness to the gig economy. While these changes may require gig workers to be more diligent in their record-keeping, they also simplify the reporting process and ensure that everyone pays their fair share of taxes. Stay informed and keep your records accurate to navigate these changes smoothly.

Feel free to contact me if you have any questions.