Posthaste: Cash-strapped Canadians are taking on side hustles — but many aren't telling the CRA

financialpost.com:

In these tough economic times, the ranks of Canadians taking on a side hustle to make ends meet is rising.

A new study from tax experts H&R Block Canada Inc found 28 per cent or nearly 9 million Canadians are now doing so-called “gig work,” up from 13 per cent in 2022.

Another 12 per cent are considering it.

The reasons seem obvious. As the cost of living and interest rates have risen over these past few years, more Canadians are finding their incomes stretched to the breaking point.

In the H&R survey, almost three in four respondents said the higher cost of living is making it hard to afford everyday expenses and 24 per cent are struggling to pay their bills.

So whether it’s freelance work, dog walking, home repair or delivery services or even just selling your stuff on marketplace platforms, “a huge contingent of Canadians report taking on gig work to boost their income,” said the report.

For the vast majority, 72 per cent, gig work is a second income to their day job, and 58 per cent report taking it on because of financial pressures.

However, when it comes to declaring that extra income, the study reveals that a significant number of the gig workers are willing to take risks, said H&R Block.

Almost 30 per cent of the workers said they didn’t declare all of their gig income when they filed their taxes last year.

As the deadline for this year’s tax filing approaches, almost half, 43 per cent, say they’re willing to take the risk of not declaring all their gig income. A further 32 per cent say they will risk not declaring any of this extra income.

“While Canadians’ appear tempted to not declare all or any gig-related income, this carries major risks. Ultimately, it’s breaking the law,” said Yannick Lemay, a tax expert