Additional “Hobby”/Irregular Income for ARC Holder/Future APRC Applicant

Yes you can.

The issue isn’t whether or not she has an ARC but whether or not she has permission (or is exempt from requiring permission) to work i.e. whether or not she has (or has no need of) a work permit.

One notable exception (thanks again @tando) is explained here:

I suppose you could set up one company locally and another overseas. Do check with a lawyer first though, to make sure it won’t be taken for an elaborate con.

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