1 ACCEPTED SOLUTION
Accepted Solutions
"I am asking at what point is Ebay required by law to submit your info to CRA"
When the first case went to court - fiscal 2004 - the decision eventually was made by the Court on the basis of being a "PowerSeller", the original request by CRA.
However, it seems things have changed since then and I understand eBay is now cooperating with CRA instead of fighting them. In addition to the annual report, eBay will respond with the information whenever CRA asks for a specific seller.
CRA often gets information from sources outside eBay leading to a request for information. It could be something as simple as a buyer claiming a deduction for an eBay purchase, etc...
All net profit, starting from the first dollar, must be reported as business income on your annual tax return. That has not changed.
As far as GST/HST is concerned, sellers with annual worldwide revenue of $30,000 or more (includes shipping charges) must register and remit GST/HST.
They claimed this already happened about four years ago.
They are not "going after" anyone.
Here is something no-one in Canada comprehends. EVERYONE is audited every year through a CRA computer program. I worked for them, many years ago, when they were Revenue Canada.
I do not remember specifically, heck, hardly even generally, but eBay/Paypal was supposed to be handing over records of anyone that grossed in excess of $20K per year. This is from 4-5 years ago.
Gross has nothing to do with net. My net is small as I have a lot of legitimate expenses. I even has a phone conversation with a person in authority and we discussed expenses being within certain parameters.
Rule #1: Do not report continual losses. This is called the Amway Scam. You must have a reasonable expectation of a profit.
Rule #2. Simply report your gross and net with an income statement.
Here is something no-one in Canada comprehends. EVERYONE is audited every year through a CRA computer program. I worked for them, many years ago, when they were Revenue Canada.
I do not remember specifically, heck, hardly even generally, but eBay/Paypal was supposed to be handing over records of anyone that grossed in excess of $20K per year. This is from 4-5 years ago.
Gross has nothing to do with net. My net is small as I have a lot of legitimate expenses. I even has a phone conversation with a person in authority and we discussed expenses being within certain parameters.
Rule #1: Do not report continual losses. This is called the Amway Scam. You must have a reasonable expectation of a profit.
Rule #2. Simply report your gross and net with an income statement.
I "think" returns are locked after four years, or, the last three plus the one we are in, are still live.
"I am asking at what point is Ebay required by law to submit your info to CRA"
When the first case went to court - fiscal 2004 - the decision eventually was made by the Court on the basis of being a "PowerSeller", the original request by CRA.
However, it seems things have changed since then and I understand eBay is now cooperating with CRA instead of fighting them. In addition to the annual report, eBay will respond with the information whenever CRA asks for a specific seller.
CRA often gets information from sources outside eBay leading to a request for information. It could be something as simple as a buyer claiming a deduction for an eBay purchase, etc...
"...you never had no audit before.."
Posters like "fatdane" and myself and so many other eBay sellers have in fact been audited by CRA, usually for several years..
My audit lasted over six months. It covered two years for both income tax and GST/HST.
The auditor had access to everything: my eBay and PayPal accounts, my bank statements, my credit card statements, invoices from suppliers of goods and services (including property tax, insurance, utilities), invoices to customers, my checkbook register, etc.... My office was measured so that my claim for home office use was not overstated.
It was no fun at all, even though I had nothing to pay as the auditor eventually conceded - in writing - all my taxes had been properly calculated and remitted.
