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Whether you earn income through OnlyFans, online content, or in-person services, the CRA expects full reporting and strict compliance. Missing filings, incorrect GST/HST treatment, and unreported earnings can trigger penalties, reassessments, or audits.
Faris CPA provides expert, non-judgmental guidance to help you stay compliant, reduce CRA risk, and resolve tax issues the right way.
What the CRA Expects From Sex Workers and OnlyFans Creators
Like all other professionals, OnlyFans creators and other workers in the sex industry are obligated to pay their taxes.
When you earn income through this line of work, the CRA expects full compliance. This includes:
- Registering your business with the CRA
- Accurately reporting all revenue
- Filing the correct tax forms
- Collecting and remitting GST/HST when applicable
- Identifying eligible expenses and deducting them properly
- Filing returns by the correct deadlines
Mistakes such as misreporting income, claiming deductions incorrectly, or filing late can lead to penalties, interest, reassessments, and long-term CRA issues.
If you’re a sex worker, OnlyFans creator, or an accountant retained by a worker in these professions, you don’t need a high-priced tax lawyer. Sam Faris is a licensed CPA specializing in sex work and OnlyFans taxation issues. Whatever tax help you need, including audit representation and filing years of unreported tax returns, Faris CPA can help.
Overview of the Sex Industry in Canada
The term “sex worker” refers to individuals working in the sex industry to earn an income.
It is a broad term that covers a wide range of services, including:
Phone sex operators
A phone sex operator is a type of sex worker who provides pleasure through the phone. Phone sex may take on varied forms, such as sexual sounds, guided fantasies, and discussions of very intimate and sensitive sexual topics.
Erotic Dancers
These dancers provide erotic entertainment with the goal of provoking sexual thoughts and actions and are usually clothed. Erotic dance has several categories, such as social dance, performance dance, participation dance, competitive dance, and ceremonial dance.
Sex-Toy Makers
Whether alone or with a partner, some people get aroused with the aid of sex toys, which can range from dildos and vibrators to oils, lotions, and lubricants.
Strippers
These dancers offer another level of pleasure when dancing. Typically, strippers wear a small piece of clothing or are completely nude when performing on stage. Strippers also dance in a provocative or seductive manner to arouse their audience.
Pornographic Actors
These types of actors are sex workers who perform different sexual acts or role-play according to one’s fantasies. It can be soft porn or hardcore porn, which includes sexual penetration. Some sex workers establish large audiences through platforms like OnlyFans.
Webcam Models
A webcam model is a video entertainer whose performance is generally streamed via the internet to a live audience. The audience is composed of people who are paying to watch the model perform various sexual acts.
Prostitutes
While some prostitutes offer sex for pay, there are some prostitutes who provide escort services to their clients, which include accompanying the client to a social event but not engaging in intercourse.
Sex Work as a Source of Taxable Income
Canada does not shy away from taxing someone even if the income is earned in a legal gray area. When it comes to reporting income or claiming expenses, the worker must file an income tax return, and the deadline to file the return depends on whether the sex worker operates the business as a sole proprietor or a corporation.
It’s important to seek the guidance of an expert before filing OnlyFans taxes, as there are numerous tax-reporting differences between these business structures, and the wrong choice will cause you to pay more in taxes than you need to.
Canadian Income-Tax Implications for Self-Employed Sex Workers
If you earn income from sex work or online platforms like OnlyFans, the CRA treats you as a self-employed individual.
This means you are responsible for meeting all business-related tax obligations, including sales tax requirements.
If your earnings reach the federal threshold for mandatory registration, you must:
- Register for a GST/HST account
- Charge GST/HST on taxable services
- Collect and remit those amounts to the CRA
- File regular sales tax returns
These obligations apply in addition to reporting your annual income. Understanding when GST/HST registration is required and how to handle it correctly is essential to avoiding penalties, reassessments, and other CRA enforcement actions.
GST/HST Obligations of Self-Employed Sex Workers
Those who need to register for a GST/HST number are freelancers who have earned at least 30,000 CAD as income in the last 4 (or fewer) consecutive quarters.
After registering, a sex worker must now start charging their customers GST/HST and remit those taxes to the government.
How OnlyFans Income Is Taxed in Canada
Canadian content creators receive 80% of their OnlyFans revenue, while 20% is kept by the platform. When it is time to claim taxes, the creator must report the full 100%.
Content creators can then claim the 20% fee in Line 8871 of form T2125, Statement of Business or Professional Activities, which is for Management and administration fees – IF they are filing self-employment, partnership, or professional income.
Canadian Income-Tax Returns for a Sole-Proprietor Business in the Sex Industry
For sex workers in Canada who are operating as sole proprietors, it is important to file the Canadian T1 General Income Tax Return.
It should be filed on or before the 15th of June of the following year. However, unincorporated sex workers may be exempted from filing the tax. It may differ according to the situation.
Speak to a professional to know for sure. Not doing so can lead to inaccurate tax returns, reassessments, back taxes, fines, interest, and other penalties.
Pro Tip:
When you fill out your form T2125, which is the form in which you claim your expenses, you calculate your net income by subtracting your income from your costs. Make sure you’re taking advantage of all available deductions, rebates, credits, and benefits. Talk to Sam Faris today.
Canadian Income-Tax Returns for an Incorporated Business in the Sex Industry
If you operate as an incorporated business, the CRA applies specific filing and payment rules.
Filing Deadline: T2 Corporation Income Tax Return
- A corporation must file its T2 Corporation Income Tax Return within 6 months of the end of its taxation year.
- Because corporations can choose an off-calendar fiscal year, filing deadlines may differ from personal filing timelines.
Payment Deadline: When Corporate Taxes Must Be Paid
- Corporate taxes are typically due 2 months after the fiscal year-end.
- If the corporation qualifies for the small business deduction, the payment deadline extends to 3 months after year-end.
Why These Deadlines Matter
Failing to meet corporate filing or payment deadlines for CRA tax assessments can result in penalties, interest, and increased scrutiny. Ensuring timely, accurate filings is essential for protecting the corporation from reassessment or collection action.
A Common Tax Scenario for Sex Workers & OnlyFans Models
There are scenarios where a sex worker or an OnlyFans creator may earn a substantial income for several years but, despite their success, be unaware of their tax obligations or unsure how to report this income to the CRA.
As time passes, the unreported income in unfiled tax returns can continue building, creating a growing concern about potential back taxes, interest, penalties, and even the possibility of a CRA tax audit or prosecution for tax evasion.
The CRA can discover this unreported income before a taxpayer has a chance to come forward.
Sam Faris is a seasoned CPA with extensive experience in handling tax issues related to sex work and OnlyFans taxes.
He understands the delicate nature of these cases and is equipped to address unreported income without taxpayers having to face severe penalties or prosecution, or pay high-priced lawyers’ fees.
How to Avoid Penalties for Unreported Sex Work & OnlyFans Income
In this type of scenario, Sam can help you take advantage of the CRA’s Voluntary Disclosures Program (VDP), which allows taxpayers to correct past tax errors or omissions.
By proactively disclosing unreported income through the VDP, a sex worker can avoid the harsh penalties and legal consequences that might otherwise apply if the CRA discovers the issue on its own.
Professional Management of the VDP Process
With Faris CPA’s expert support, you can ensure that the VDP process is managed properly from beginning to end.
This includes:
- Preparing and submitting the VDP application
- Organizing and verifying supporting records
- Accurately reporting income and expenses
- Filing outstanding tax returns
- Negotiating reductions in interest where possible
- Protecting you from further penalties and enforcement actions
With senior CPA representation, you resolve unreported income issues in a controlled, compliant, and defensible way, without facing the severe consequences that come with CRA discovery.
Got Questions? Contact Faris CPA Today.
Not everyone understands the responsibilities of sex workers’ CRA taxes. If you are a Canadian citizen who is planning to enter the sex industry or become an OnlyFans model, it is best to contact Faris CPA first.
Our proficient and experienced OnlyFans tax specialists are here to help you with specific tax questions, tax planning, unfiled returns, audits and accounting. Don’t waste another second worrying about your tax obligations; call us now.
Sex Workers & OnlyFans CRA Taxes for Canadians FAQs
Is OnlyFans taxable in Canada?
Yes, it is your legal duty as a resident of Canada to pay taxes to the government on your income from OnlyFans.
How to show OnlyFans as proof of income?
Use banking records, OnlyFans payout summaries, and your completed tax return (including Form T2125). The CRA requires reporting the full 100% of gross earnings, which makes your documentation credible for verification or lending purposes.
What is the maximum I can earn without paying income tax?
All OnlyFans and sex-work income is taxable. Even if you owe little or no tax after credits, you must still file and report the income to stay compliant.
How to get an OnlyFans tax form?
OnlyFans doesn’t issue a Canadian tax form. You must download your payout summaries and use them to complete Form T2125 with your T1 return. A CPA can help ensure the information is accurate and defensible.
What happens if I don't file my OnlyFans taxes?
Unfiled income can lead to penalties, interest, reassessments, or a CRA audit. The CRA can match deposits and online earnings to your account, and continued non-filing increases the risk of enforcement actions.
How does CRA find out about unreported income?
CRA reviews bank deposits, lifestyle spending, platform records, and GST/HST data. Discrepancies often trigger audits, including net worth analyses. Proactive disclosure through the VDP is the safest way to correct past issues.
Is prostitution legal in Canada?
The answer is a bit complex. Buying sexual services is illegal, but selling sexual services is not. Nonetheless, Canada collects taxes from sex workers.
What are the sex workers' rights in Canada?
Just like any individual, sex workers should be treated fairly and should not be discriminated against.
