The Taxman is Coming...

[phoebescollectables]

CRA won a court order to require eBay to hand over information on Powersellers.

I wonder how many sellers they will catch not reporting their income.

http://www.theglobeandmail.com/servlet/story/LAC.20070927.REBAY27/TPStory/Business

[yellowtrekbike]

I saw this coming.
Ebay should have hired a better lawyer.

Anybody have an idea on how many power sellers there are in Canada?
This could take them a while to sort through.

[fenian]

I can think of folks who sell high $$ volume on eBay, but who don't have "Powerseller" status (i.e. they're qualified, but have never signed up for it). I wonder if CRA will be looking at ALL sellers who exceed some to-be-determined sales level (e.g. $1,000 per month or better). The initial message seems to be they'll identify those Powersellers who haven't declared any eBay income, and, depending on the success of that move, may progress to more detailed audits from there. One potentially awkward circumstance in the collectibles business is that much is bought and sold for cash. Proving your purchase cost on an item bought for cash at an antiques show or flea market or garage sale could prove challenging, as the only paper trail is a note you wrote saying the money was spent. I'm sure there'll be lots more forum comments on this one !! >>>>> Michael

[tea_past_times]

I'm not concerned in any way with a government audit of my Ebay doings. I have all my:

Rent receipts
Fuel receipts
Bank charge receipts
Ebay invoices paid(goes direct to a credit card)
Records of paypal fees paid
Receipts for computer equipment
Receipts for printer ink
Receipts for inventory purchase at auction
Car payment receipts
Hydro Bills
Telephone Bills
Internet Service Bills
Records of refunds for damaged items
Postal receipts
Food receipts
Car maintenance receipts

If Ebay looks at Powersellers as running a business, remember, businesses can claim expenses. If anything, this government witch hunt just may expose how hard it is to turn a profit on Ebay. They could end up spinning their wheels, chasing a bunch of people who are breaking even, losing money or making too little to tax anyway.

Food for thought and maybe quells your panic a bit, i hope.

[moltencore]

If you've reported your eBay income there really is nothing to worry about is there? B-)

[jakeeangel]

Yeah, I love they talk about the Bronze level. $12,000 a year. ooooooo Big Whoop! It's funny.

---

[tea_past_times]

Yeah, I love they talk about the Bronze level. $12,000 a year. ooooooo Big Whoop! It's funny.....

And on the flip side, is there really anyone who is a platinum powerseller and doesn't claim the income. Who anyone be that dumb?

I think the article is a scare tactic. You can almost hear the CRA's phone ringing with the calls from scared Ebayers wanting to pay their taxes before CRA hunts them down. LOL

The logistics and legalities just don't make any sense.

[izzy@ebay.com]

Hello everyone,

Here's an announcement by Scott Shipman, Senior Counsel in the eBay Global Privacy Practices group.

Hi, everyone. By now, you may have heard about a Federal Court decision regarding the disclosure of identity and other personal information of our PowerSellers to the Canada Revenue Agency.

eBay takes the privacy of all users very seriously. In addition, we expect all users to comply and conform with applicable laws in the countries in which they do business.

As this matter is currently under review we are unable to comment any further. Our discussions with the Canada Revenue Agency are ongoing and we will keep you advised.

Izzy

[fatdane]

Anyone with any Ebay business or any business for that matter with sales outside of Canada should already be registered for the GST/HST. Yes its a pain in the butt, but the input tax credit can be a nice financial reward for dealing with the GST/HST and reduces the cost basis of goods purchased for resale.

[tea_past_times]

Gee IZZY thanks for the "CLARIFICATION" on this issue.

[tip-top.deal]

I only know that you can loose your powerseller status by none or low monthly $ performance. Just wonder - can you actually cancel your powerseller status?

[itrecovery]

Just get your feedback rating below 98% and you are done.

[timeshoppe]

If any eBay [Canadian] Powerseller's are getting nervous - call your ebay rep - OR - just go to the bottom of the ebay powerseller portal page and send an email to eBay.com asking them to cancel your powerseller status...it takes 24-48 hrs., and there goes the dreaded Poweseller icon at the top of your page. That should slow down any legitimate investigation by anyone who cares to look. If all this does become reality - and that is a big IF - then you should have a few more years of selling left before they get around to you? [This is the Canadian Gov. we are talking about]. And yes, should they want to take some of your hard earned money....get your receipts together...and declare everything as a business expense. We put in about 100 hrs. a week at this and it still doesn't pay the bills!
M&H

[timeshoppe]

One more thing: Dump your "about me" page if it contains any information you would rather not have made available to the "wrong people".
M&H

[tea_past_times]

www.prolognet.qc.ca/clyde/tax.htm

Check it out. Income tax is not constitutional legal and you don't have to pay it.

[tea_past_times]

http://www.prolognet.qc.ca/clyde/tax.htm

[tea_past_times]

Please take a few minutes to review the laws of our country. It's really really worth taking the time to. You will be astounded at what is contained in these documents. Especially Mr. Harts story.

[whoscloset]

oy...this again. Why don't you just pay your freakin taxes? There is so much you can write off legally that it's not that big a deal.

[acdsee5555]

It rots me a bit that Ebay includes your shipping fees in the sale price. It's pretty unfair for the crowd selling items ar $0.99 with a legitimate $3.99 shipping charge to cover listing fees, packaging costs, postage, selling fees, and of course Paypals cut. They show the sale as $4.98, it really should be just shown as $0.99.

Ebay should really not include selling fees in the $ volume sold total.

[accesseventure]

If the tax man wants to go after the Power sellers then I may opt to leave the club.
I have a wife and three children. They will each have an account by the end of the day. Each will sell a different product line.
Cheers