PayPal and the CRA

So I see that PayPal has joined forces with the CRA to "assist" you in paying your income taxes through Payment Source a third party service provider.

If I was a cynical person I would question this agreement between PayPal and the CRA as a plumb given to PayPal for turning over Canadians PayPal account information to the CRA. I find it just a little to convenient that all of a sudden there is this ability available through PayPal to provide this "service" all for a nominal fee of 2.29%. 

I liked the old system better, Money Orders were harder to trace. LOL

Message 1 of 24
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PayPal and the CRA

This was only a question of time.  Why do you think Canada Post started offering "solutions for small business".   Neither CP or Paypal can guarantee privacy from CRA (nobody can).  As people in general, willingly put all their personal information on line, it should not surprise anyone, that the various discounts and services are not for our convenience, but to get as many details as possible from the users.  For long time sellers here, we could be audited for as far back as 7 years.  I am suspicious of anyone offering discounts for no reason, other than just for using their service.  It is no secret CP has been running in the red for years, yet they roll out the "small business" discount.  

Some of you (maybe most) will shake your head, and roll your eyes at me, but isn't nice, we are all entitled to our own opinions.

 

Message 2 of 24
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PayPal and the CRA

It is no secret CP has been running in the red for years, yet they roll out the "small business" discount.  

 

Dunno how you decided that:

https://www.thestar.com/business/2018/05/03/canada-post-group-reports-2017-profit-up-as-parcel-busin...

And from Wikipedia:

Profits and Losses

For 16 years up until 2011, Canada Post realized an annual profit, and it has since had several profitable years.In 2011 Canada Post posted a pretax loss of $253 million, due in part to a 25-day employee lockout, and a $150 million pay equity class action lawsuit.In 2012 Canada Post rebounded to post a profit of $98 million before tax.In 2013 Canada Post lost $37 million overall. The Canada Post group's gross profit in 2014 was $269 million.In 2015, the corporation continued to remain profitable, posting a $136 million profit before tax.In 2016, Canada Post recorded its 3rd consecutive profitable year, making $114 million before tax. In total, Canada Post has made a net profit of $266 million since 2012.

 

Canada Post lost money in 2011 when management locked out employees  and  again in 2013 (was that the year they built the new Winnipeg plant?).

 

Right wingers conflate the problems of USPS and Canada Post, which does not have the same - frankly phoney- pension cloud hanging over it.

Canada Post's profits go to its owner, the Canadian government and into general revenues.

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PayPal and the CRA

It's interesting that the profitability of Canada Post has risen with e-commerce.

Online selling is just another form of mail order after all.

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PayPal and the CRA

We digress.  The topic was Paypal possibly reporting to CRA.

Aside.  If as reported CP is so profitable, it should not be necessary to contantly increase postage.  Depending from whom and where you source information, you will get different answers.  High cost of postage, is also an ongoing subject here.

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PayPal and the CRA

In Canada it is eBay that reports to CRA.....  over $20,000 in sales each year.

 

In the US it is Paypal that does the reporting to IRS....  over $20,000 in sales.....  plus postage.....

 

This is what I understand about reporting eBay  sellers to CRA in Canada  and to IRS in the USA 

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PayPal and the CRA

Hmm.. Dunno if Paypal can even verify the accounts' pertinent info (names, addresses,) or what is allowed to be piped to CRA.  Plus, that is a violation already unless CRA actually has a legal regulation for this?

 

This is rather pointless since the advent of medical cannabis and legalization coming, that is where the mega dough is for the government, not bread crumbs paypal reports to CRA.

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PayPal and the CRA

I believe it is PayPal who reports to the CRA not eBay. The CRA is interested in all money coming in to business, not just eBay sales. For many years PayPal resisted giving this information to the CRA until there was a court case filed. One wonders if PayPal was promised some sort of compensation if they agreed to provide records. Such as a cut of the tax money that is paid through them?

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PayPal and the CRA

Businesses that remit sales tax get a (tiny) percentage of the amount remitted, basically for doing the paperwork involved.

So if Paypal gets a fee, it would not be anything special.

 

Keep in mind too, that Paypal is not tethered to eBay. I have paid for convention fees and sent money to family using Paypal. My private postage business takes Paypal. As do Zulily (mostly clothing) and Wayfair (household furnishings).

 

 

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PayPal and the CRA

The court case was between eBay and CRA.

 

eBay first number was 10,000 in sales each year.

 

Then the number was raised to $20,000 

 

Read the following links.....  The court case was between CRA and eBay....

 

http://777taxes.com/cra-targets-ebay-power-sellers-who-is-next/

 

http://toronto-accountant.ca/ebay-seller-audits/

 

Message 10 of 24
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PayPal and the CRA

This is directly from the PayPal web site not some third party who can't differentiate the difference from eBay and PayPal. PayPal reports ALL income from ALL sources to the CRA not just eBay salhttps://www.paypal.com/ca/smarthelp/article/cra-information-request-faq3755es. 

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PayPal and the CRA

Page not available... The page is from Paypal Help and was accessed when you were registered on your Paypal account

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PayPal and the CRA

A search was done on the internet....

 

...... Paypal Canada Revenue Agency  eBay sellers ........

 

Nothing was found  the put Paypal together with Canada Revenue Agency (CRA) in a court case....

 

Any reference was the court case between eBay and CRA.... resulting in eBay being ordered to report to CRA  all sellers with sales over $20,000 each year.... the final ruling.

 

We should also remember that at the time of the court case Paypal was a part of eBay

 

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PayPal and the CRA

From my Paypal account.

 

Paypal's request .....

 

"PayPal has received a Federal Court order, which requires us to disclose information to the Canada Revenue Agency (CRA) about PayPal Business account holders that have received or sent a payment through their account during the relevant reporting period between January 1, 2014 to November 21, 2017. This content has been updated to reflect the correct period of January 1, 2014 to November 21, 2017."

 

The key wording here is ......Business Account holders

 

The sellers on eBay do not have to have a Paypal Business Account to sell on eBay.  

 

Paypal has three levels of accounts..... (1)Personal, (2) Premier and (3) Business....

 

 

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PayPal and the CRA

mcrlmn
Community Member

 

I don't subscribe to conspiracy theories.

Message 15 of 24
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PayPal and the CRA


@judithsjewellery wrote:

So I see that PayPal has joined forces with the CRA to "assist" you in paying your income taxes through Payment Source a third party service provider.

If I was a cynical person I would question this agreement between PayPal and the CRA as a plumb given to PayPal for turning over Canadians PayPal account information to the CRA. I find it just a little to convenient that all of a sudden there is this ability available through PayPal to provide this "service" all for a nominal fee of 2.29%. 

I liked the old system better, Money Orders were harder to trace. LOL


I'm curious where you heard that.

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PayPal and the CRA


@pinetreecottage wrote:

We digress.  The topic was Paypal possibly reporting to CRA.


I'm confused. If the topic was PP reported to CRA, what does Canada Post have to do with it?
Message 17 of 24
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PayPal and the CRA

It's right on the PayPal web site, if you haven't signed in in a while it should come up just after you complete the login.

Message 18 of 24
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PayPal and the CRA


@severnsoundantiques wrote:

It's right on the PayPal web site, if you haven't signed in in a while it should come up just after you complete the login.


No, it does not.

However, in my case, I do not have a PayPal Business account.

I've resisted the PayPal enticements to upgrade.

-..-

Message 19 of 24
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PayPal and the CRA

Once signed onto the Paypal site....

 

On the Help section...Do a search for  ....... CRA Information Request

 

and there it is.....

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