eBay

jamiehawke11 · ‎10-18-2012

I've identified a seller who is committing tax fraud in their listing (charging sales tax well above the actual rates; likely pocketing any difference assuming that the seller is even filing any of those tax earnings). Ebay.ca has no way of reporting this: they won't take reports over the phone, and NONE of their 'Report Item' selectable items match the topic of tax fraud.

dmil8030 · ‎10-18-2012

How have you "identified" this, exactly? "Fraud" is a very serious accusation. Many Canadian sellers charge tax, - usually business sellers who have a 'real life' store from which they also sell online. They have to charge tax on their ebay sales, just as if you bought it in a local version of their shop. The following link shows what the tax rates are,

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rts-eng.html

Is the seller charging more than that? I'm in BC where we have HST and that's 12% on everything (pretty much). If I buy from a business seller in Nova Scotia, - I still pay only 12% even though that province's tax rate is higher. If I buy from Alberta, they only pay 5% GST, but the seller in that province has to charge me 12%, - because of my province, not his.

If the seller you speak of is charging more than is due I can't imagine how he is still online. Anyway, it is really not the purview of ebay to intervene in issues of tax fraud. That's why there is no 'report' button for that particular accusation. Ebay will, however, hand over any documentation that Revenue Canada (CRA) asks for. Here's a link to the phone numbers, - they don't list an actual 'Snitch Line' and I've never had cause to use it and hence don't know it, though I've heard it exists. No matter, I'm sure someone there will be able to assist you:

http://www.cra-arc.gc.ca/cntct/phn-eng.html

heidilynn0_3 · ‎10-18-2012

Some sellers are registered to collect PST in multiple provinces. If you are certain of an actual discrepancy , drop seller a note asking for clarification.

Sellers are required by law to give their CRA business # and should be on invoices.

Be sure of your facts before reporting any seller.

Anyone overcharged can appeal to CRA for rebate.

heidilynn0_3 · ‎10-18-2012

PS .. post the item # here so we can view. Do not post seller's ID.

jamiehawke11 · ‎10-18-2012

Thank you both for your replies. heidilynn0 - I'm not sure if I'm allowed to even post the item# on this board? (I just PM'd you the item# in case).

Yes, I don't use the term 'fraud' lightly. I am aware of the correct PST/HST/GST rates that sellers should be charging to buyers in other provinces. In this case, the seller identifies as being located in Ontario, and the sales tax rates he/she advertises for sales to other provinces do not add up: for instance, he/she is charging 11% sales tax for items shipped to Alberta. I thought it might just be an honest mistake and messaged the seller telling him/her that the correct tax rate should be GST only (5%) given that Alberta has not PST. The seller replied back saying: "Hi, The tax is 11 percent due to the additional taxes i must pay for out of province sales. Sorry,".

I then remessaged them back, again stating that I didn't believe that this is correct. I believe rates to some other provinces are also elevated. For this reason, I have not purchased from this seller, but I still feel it necessary to report this seller as he/she may be pocketing extra charges. The seller isn't just sellling penny-items (in which case I wouldn't bother with this) - he/she is selling items listed for > $100 and has sold over 100 so far.

My concern and surprise with Ebay.ca (having never sold anything on Ebay.ca before) is that sellers can just create whatever sales tax schema that they want to charge. I would have thought that Ebay.ca would have some standard sales tax chart based on the seller's province of origin that sellers could optionally click to add to their listing.

In this case, given that Ebay.ca has no mechanism for me to alert them at all, I sent messages to the Canadian Anti Fraud Centre as well as the Ontario Ministry of Finance. You know how things work there - it will probably end up in email vaporland. Is there anything else I can/should do? Or should I just let this seller continue collecting a surcharge masked as a tax rate?

jamiehawke11 · ‎10-18-2012

Oh and dmil I will contact CRA - thanks for pointing them out as a reference. FYI the seller has not bothered to reply to my second message (where I remessaged them indicating which sales taxes are in error) - it has been a week now and the listing remains the same, so that is why I'm pursuing this now.

Regards