I hear the following sentence “That is what I make on paper, I actually do better than that.” The way I understand this sentence is that the person makes money, but does not report all of that money, so it is not on paper. I also hear that the rules “on paper” are different than the rules in real life. I of course find this very interesting because a lot of my life involves complying with rules that are written on paper. We are required to follow the Income tax act which is written on lots of paper and I teach governance.
One problem with having more income in real life than you do on paper is that you can’t get a loan based on income that you do not report. You will not be able to sell your business for what it is worth if you don’t report all of your income.