"The federal agency told CBC News it has processed only nine of the proactive voluntary disclosures and that those nine represent about $275,000 in previously undeclared income."
Well 275k divided evenly would be about 30k each of "undeclared income" which is likely not the same as "taxable income". Pretty much any seller with 30k gross is going to be owning little if anything in taxes when all is said and done.
I'd hazard a guess that the bulk of any unpaid taxes can be attributed to a tiny number of larger sellers. Relative to all the classic evasion suspects I doubt there is any great windfall to be had by auditing small eBay sellers. Just add them to the pile of contractors, food service workers, consultants, corner store operators etc. etc. etc. not to mention the myriad of GST scams.
Well 275k divided evenly would be about 30k each of "undeclared income" which is likely not the same as "taxable income". Pretty much any seller with 30k gross is going to be owning little if anything in taxes when all is said and done.
I'd hazard a guess that the bulk of any unpaid taxes can be attributed to a tiny number of larger sellers. Relative to all the classic evasion suspects I doubt there is any great windfall to be had by auditing small eBay sellers. Just add them to the pile of contractors, food service workers, consultants, corner store operators etc. etc. etc. not to mention the myriad of GST scams.
"Pretty much any seller with 30k gross is going to be owning little if anything in taxes "
It depends.
If the $30,000 is sales netting $10,000 (or whatever) is added to other income, of course there will be subtantial income tax to pay.
On the other hand if $30,000 in sales (netting $10,000 or whatever) represent the only income, then the effect should be negligible.
However when I read "about $275,000 in previously undeclared income" I understand it to mean "income" (not gross sales) of $30,000 per individual. That "business income" is then added to other income (salaries, investment, pension, whatever) to eventually arrive at taxable income.
$30,000 addition to other income should net the governments (federal and provincial) at least $10,000 per taxpayer once you factor the potential added CPP contributions.
It depends.
If the $30,000 is sales netting $10,000 (or whatever) is added to other income, of course there will be subtantial income tax to pay.
On the other hand if $30,000 in sales (netting $10,000 or whatever) represent the only income, then the effect should be negligible.
However when I read "about $275,000 in previously undeclared income" I understand it to mean "income" (not gross sales) of $30,000 per individual. That "business income" is then added to other income (salaries, investment, pension, whatever) to eventually arrive at taxable income.
$30,000 addition to other income should net the governments (federal and provincial) at least $10,000 per taxpayer once you factor the potential added CPP contributions.
As stated earlier, I have been audited (both income tax and GST/HST) for two years.
No problem.
"Has anyone been audited or heard of anyone being audited?"
There have been many posts over the years, including recently, of sellers having been audited or infirmed bt CRA that an audit was coming. Many were not Powersellers
Not all audits originate from information supplied by eBay. CRA collects a lot of information from many sources: banks, carriers, suppliers, Customs entries, etc...
I was in Toronto at a Stamp Show today and can confirm that other eBay sellers (stamp dealers) are currently being audited.
CRA will not advise why an audit is conducted and what information they have or where it comes from until needed.
"prosecuted"
...that would only happenm if a taxpayer is attempting to defraud the government by under reporting income, whether it is generated on eBay or elsewhere.
I do not think "eBay" sellers are the target. It is more a blanket audit of home based businesses using online marketing. eBay happens to be one of the most visible venue.
I doubt that you'll get seller's advertising that their business is being audited on these boards. I know I wouldn't. It doesn't mean that a seller has done anything wrong if they're being audited but a lot of assuptions get made on these boards. It's my understanding that it's fairly common practice that any new business will probably be audited at some point during their first 5 years of operation.
