Big Audit from the Goverment of Canada. They asked for my Ebay user ID and email address ...curious wonder what Ebay would provide them if requested

[auctiondropnship]

Well the lady was in the office today ..seemed to go ok

However they seems to have done some background on me before they came in
Because we run a real business and or Ebay business together . They had a few questions like what was Sparedollar? What was Ink frog?

They also asked for my Ebay user ID and email ..Notice my feedback that I did today

This got me too thinking what would Ebay provide them if requested ?

[muminlaw]

Todd, I don't understand why you would make your feedback private because of Revenue Canada. I honestly believe that eBay would tell them anything they asked - I don't think eBay'd have a choice on that.

The obvious advice is to keep your books up-to-date and report all sales - God, that's easy to say and hard to do (I'm a notorious procrastinator on the books!!) GOTTA GET TO THEM ... NOW!!!

Glenda

[imagi.nation]

http://thenation.com/doc.mhtml?i=20030707&s=engle

Read it and weep.

[muminlaw]

That seems to apply to the US but I'm sure there's not a lot of difference here.

I repeat: Anyone who thinks they can hide what they're doing on eBay from Revenue Canada is living in a dream world! (or a fool's Paradise!!)

Glenda

[auctiondropnship]

90% of my sales are to American's . I have very little fear as we have doen our books the best we could. I have not hidden anything. I may have missed things but it's not intentional . Personally they can not go rooting through my invoices , we have read up on our rights as a business . They can ask for info and we can provide the info they request

However feedback also can be read incorrectly if you know only a little about how Ebay works . So for me , this is something I perfer too do for the next few weeks
Todd

[shoplineca]

Todd
Where did you ever read that Revenue Canada cannot go rooting through your invoices?

Here is the Revenue Canada Link to Tax Audits:

http://www.cra-arc.gc.ca/E/pub/tg/rc4188/rc4188eq.html

It takes Revenue Canada about 20 seconds to obtain a search warrant. Their powers are some of the broadest in our country and the damage that they can cause is almost irreversable.

A decent tax lawyer is $400 per hour and up, the rest are basically trainees, having NO CLOUT with Revenue Canada. Without clout, your tax lawyer will not be able to do a heck of alot for you, except keep your wife company while you are in jail.

Malcolm

[shoplineca]

By the way, most auditors with Revenue Canada are pretty decent and will spend some time with you helping you where they feel your record keeping or method of reporting needs a little assistance.

Their goal is to make certain that everthing you are doing is correct and that you have an understanding of it. They are not out to specifically catch you, but if they suspect that you are witholding something then watch out.

Malcolm

[auctiondropnship]

Evangline was extemly open too the questions they asked. We were given info by them , they faxed it

In the letter it commented on , our privacy . One of the comments in the letter was they "do not root through invoice in our tubes"

The lady seemed extremly nice and helpful

In fact she commented that it looked like we had paid to much GST
Todd

[muminlaw]

So, Todd, was this an Income Tax audit or a GST audit? Big difference!!!

And, according to Revenue Canada, you are guilty until you prove innocence! To HELL with laws that state otherwise!

Glenda

[auctiondropnship]

Income Tax audit

[sunward-hobbies]

If income tax audit, then the assumption is what you have reported is correct.

If while looking around, things don't add up, then you have a small problem.

You get audited line by line. If in depth, everything gets looked at. If it is a question of taking too many deductions ( example, I wasn't allowed all my internet connection fees ), then it goes back and forth. Then the auditor will do a summary and say you owe so much. You appeal and work with another tax employee to see what can be done. This new civil servant will now make a report with recommendations as to what should and shouldn't be allowed. If you agree with this summary, then usually the report and its recommendations are approved. If you disagree with the report - in its entirety - then you have to sue in tax court. ( if you disagree with one point of the report, that has no bearing. I was told all or nothing ).

If you didn't declare income, get a lawyer. You may have a big problem.

[auctiondropnship]

Thanks guys will know more in a week,