It does not matter if you are a PowerSeller or not for eBay to send the financial information to CRA. The rules were changed last year and CRA request for information covers ALL sellers, not just PowerSellers.
In any case, all sellers who purchase goods for resale are expected to declare their net profit from online sales (eBay and others) as business income on their annual tax return. With over 100 sales transactions in the last 12 months, it is fair to assume CRA would consider your operations a "business'.
In any case, all sellers who purchase goods for resale are expected to declare their net profit from online sales (eBay and others) as business income on their annual tax return. With over 100 sales transactions in the last 12 months, it is fair to assume CRA would consider your operations a "business'.
You peeps know what the limit of sales that can be reached before eBay sends info to Rev Can?
Do you have a PayPal account?
Do you have a bank account connected to your PayPal account?
Do you have a credit card?
Do you have a credit card connected to your PayPal account?
Do you withdraw money from your PayPal to your bank account?
CRA can find out anything they are interested in. They can wait for eBay to put your name on a long list that they probably don't pay much attention to or you could be randomly selected for a "closer look" or a full audit at which point your paper trail would reveal everything they need to know.
To be safe I recommend false id and accept cash only!
Do you have a PayPal account?
Do you have a bank account connected to your PayPal account?
Do you have a credit card?
Do you have a credit card connected to your PayPal account?
Do you withdraw money from your PayPal to your bank account?
CRA can find out anything they are interested in. They can wait for eBay to put your name on a long list that they probably don't pay much attention to or you could be randomly selected for a "closer look" or a full audit at which point your paper trail would reveal everything they need to know.
To be safe I recommend false id and accept cash only!
"What is the rule for 2009?"
The rules have not changed substantially in 70 years.
Worldwide business income must be reported, regardless of amount, regardless of source.
In the USA, starting in January, PayPal is now required by law to report to the IRS any user receiving either
more than 100 transactions a year (2 per week on average)
or $20,000
In Canada, eBay lost in its attempt not to provide finantial information on PowerSellers as requested by CRA. The following and susbequent years, CRA came back for information for active sellers, regardless of PowerSeller status. CRA is also known to get information from other sources to estimate revenues from home based businesses.
Facing a 50 billion dollar deficit, the federal government is trying to find tax money wherever it is due.
The rules have not changed substantially in 70 years.
Worldwide business income must be reported, regardless of amount, regardless of source.
In the USA, starting in January, PayPal is now required by law to report to the IRS any user receiving either
more than 100 transactions a year (2 per week on average)
or $20,000
In Canada, eBay lost in its attempt not to provide finantial information on PowerSellers as requested by CRA. The following and susbequent years, CRA came back for information for active sellers, regardless of PowerSeller status. CRA is also known to get information from other sources to estimate revenues from home based businesses.
Facing a 50 billion dollar deficit, the federal government is trying to find tax money wherever it is due.
