PayPal now requires you to upload your Canadian Tax Return to prove your address

[2fiftyrecords]

Warning to all Canadian PayPal business users. Paypal apparently has a new policy that asks you to confirm your identity due to new Govt. of Canada rules. This is not a scam, hoax or phising thing, this is legit from PayPal. The only way that they will let you do this is by uploading your entire tax return (must be downloaded from the CRA website. You can not just scan the first page and block out the financial info). Again, this is not a joke or a hoax. They will notify you of the need for this information and will immediately block your account until you provide it. You will not be able to withdraw any money until you do nor will you be able to print shipping labels or pay fees from your PayPal account. The need to confirm your identity is legit but to demand someones tax return is not. Over 5 hours on the phone, email etc and my account is still blocked after 2 weeks and have been told point-blank that they will not allow me access to my money unless I supply my entire tax return. (I have offered to provide a copy of my drivers license or other form of ID but they will only accept a tax return, assessment or Student account statement from a college or University (and obviously I am not a student). Get your money out now while you still can!

[2fiftyrecords]

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@ricarmic wrote:

The tax assessment is the wee 2 page or so document they generate after one files ones taxes that would be much easier to scan and send than the return (For those of us who still get the assessments mailed to us)

I seem to remember having some sort of fiasco around this a few months ago too. (and I've been with PAYPAL since it was created!!!!). I don't remember what I did but I called and everyone was happy after that -so far at least!

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ricarmic - PayPal will not accept a scanned document. They will only accept a document that has been directly downloaded from the CRA website. These pdf's have some digital encryption that do not allow you to edit or modify them. That means that you can't scan your tax assessment and block out the financial info or only send them the first page.

In the downloaded digital version it is 4 - 5 pages (in my case) and basically contains every line of your tax return and all your tax return information.

I too have had my PayPal account for many, many years without any problems. This came completely out of the blue.

[cumos55]

The request by Paypal may not refer to the full tax document sent to Canada Revenue Agency before April 30.

The request may be for the document sent by the Canada Revenue Agency to you after the full return has been evaluated.

Confusion by definition

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When I referred to a new ID....  my reference was with respect to having  a totally new account.... not just changing the ID associated with the old account.

The fact that you had re activated a very old account  was perhaps why Paypal was very focused on your confirmation of who owns the old account...  Was that old account hacked?

Another consideration might have to do with the question that... Did you move? ... change the place of residence between 1999 and today.....

The final conclusion is that this most likely applies to you only.....   Many things have to be considered....  things that other sellers that use Paypal  may not have to deal with today or in the future...

OP's situation is very ... unique.....

[2fiftyrecords]

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@cumos55 wrote:

The request by Paypal may not refer to the full tax document sent to Canada Revenue Agency before April 30.

The request may be for the document sent by the Canada Revenue Agency to you after the full return has been evaluated.

Confusion by definition

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When I referred to a new ID....  my reference was with respect to having  a totally new account.... not just changing the ID associated with the old account.

The fact that you had re activated a very old account  was perhaps why Paypal was very focused on your confirmation of who owns the old account...  Was that old account hacked?

Another consideration might have to do with the question that... Did you move? ... change the place of residence between 1999 and today.....

The final conclusion is that this most likely applies to you only.....   Many things have to be considered....  things that other sellers that use Paypal  may not have to deal with today or in the future...

OP's situation is very ... unique.....

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No, my situation is not unique. Was told directly by PayPal that this requirement is new and will apply to ALL Canadian PayPal business accounts going forward. ALL accounts will need to have this information supplied in the near future and they are rolling out out gradually to ALL accounts. Obviously, as can be seen by the time delay in processing my case (over 2 weeks and counting) they do not want to roll it out to everybody at the same time as they would be swamped and so they are making the change to all accounts over the next few months. It has nothing to do with any of the factors that you mentioned. I have changed my address since 1999 but have always updated my eBay and PayPal records and so what difference would that make? This has nothing to do with my eBay account. This is with regards to my PayPal account which has been in continuous operation since it was opened many years ago. Starting to sell again on eBay should have no bearing on my PayPal account. 

[tyler@ebay]

Thanks for the tag @reallynicestamps!

Hi @2fiftyrecords - I'm afraid I'm much less informed about this than you are at this point. Because we're different companies, I don't have any insight into this request from them.

I did some Google searching and spent some time on PayPal's community forums as well. I've found a few other reports of people getting similar requests, but no statement from PayPal, or reply from PayPal teammates on the forums, or any indication of this as a policy.

Have you considered social media for contacting them? I used to work with the eBay social team and we saw PayPal be very responsive to tweets. The caliber of teammate you get on social tends to be much more reliable and effective.   Their profile is here.

Sorry I can't get you more input on this, and please do keep us updated if you get more clarity on this change. 

[2fiftyrecords]

Hi Tyler,

Yes, I have tried contacting through the socials (I was blocked by the PayPal Facebook page as they apparently didn't like the negative information on a post aimed at small business people...) The Twitter admin has sent several very nice messages saying that this would be resolved within 24 hours and someone would contact me. Never happens. 2 weeks and counting, Over 5 hours on the phone plus multiple emails and my amount still blocked with PayPal refusing to remove the limitation unless I supply my tax return.

[esclyons]

where do you find out in paypal if you are a business or personal account, i looked earlier, and can't see either listed.. Also about 2 months ago, i had to update all kinds of information, when they asked me inside Paypal, to confirm myself..  asked about my job title, my address, etc..

[recped]

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@ichopshop wrote:

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@2fiftyrecords wrote:

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So as I read this it's asking for one of these things as proof of address.  Paypal's not demanding any one document, just offering you a list of options.

Ian

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Bingo!

[2fiftyrecords]

Other than the Student Record Statement (which obviously only applies to students) the other three options all amount to the same thing. They will all provide ALL of your tax return info so it's not really a choice at all!

[esclyons]

yes, if it is just a proof of address, then i believe the request, and the given options are a little extreme..

[recped]

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@2fiftyrecords wrote:

Other than the Student Record Statement (which obviously only applies to students) the other three options all amount to the same thing. They will all provide ALL of your tax return info so it's not really a choice at all!

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A Notice Of Assessment DOES NOT contain "all of your tax return info", it usually contains some info, (Taxable Income, Tax Payable). A CRA Tax Receipt only shows the amount of the payment made.

[2fiftyrecords]

If you are happy to provide your total taxable income, deductions, tax paid etc etc to PayPal JUST TO PROVE YOUR ADDRESS then please go ahead. Be my guest. Be aware that this is the same information that CRA uses to identify you when you cal them ('Please tell me the amount on line 260 of your 2018 return' for example). Everybody else that I have spoken to about this is absolutely horrified. PayPal can confirm your address in many, many other ways that are far less intrusive than this (just like every other company on the planet) Therefore I am letting the community  know. I am not here to argue with you or anybody else. 

[a52split]

Similar to what I saw in my PP acct last month:

https://community.ebay.ca/t5/PayPal/Identity-confirmation/m-p/421488#M2308

They aren't demanding my tax return, just a bunch of other data on me.  Strangely, even though it states my account is locked, it isn't.  I'm able to receive payments, withdraw $, and pay fees.  I'm just ignoring it now.

I've got a friend who works for that hated agency.  I'll ask him if he knows anything when I see him next week.  If not, I'll ask him to do some asking around.

[ypdc_dennis]

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@esclyons wrote:

where do you find out in paypal if you are a business or personal account

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https://www.paypal.com/myaccount/settings

Does it have a link called "Upgrade to a Business account" -- then you should have a Personal level paypal account.

-..-

[summitheights00]

I am going through a similar process right now, verifying my business name and address and all that, but I have not been asked for any government-based info aside from my business registration paperwork.

Oddly, I also have a warning on my account that says I can't complete any transaction until I visit the Identity Dashboard or whatever, but my account is working just fine.

*shrugs*

[2fiftyrecords]

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@a52split wrote:

Similar to what I saw in my PP acct last month:

https://community.ebay.ca/t5/PayPal/Identity-confirmation/m-p/421488#M2308

They aren't demanding my tax return, just a bunch of other data on me.  Strangely, even though it states my account is locked, it isn't.  I'm able to receive payments, withdraw $, and pay fees.  I'm just ignoring it now.

I've got a friend who works for that hated agency.  I'll ask him if he knows anything when I see him next week.  If not, I'll ask him to do some asking around.

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Thanks but to be clear, this tax return info request is not being requested because of the CRA. This is PayPal's own policy. The only requirement that PayPal has as a financial institution is that they has to confirm your identity. I have already done this in the past when I opened the account.

I am happy to do it again if they so require as I have nothing to hide but there are much less intrusive methods to prove your address than providing all your tax info. This is an infringement on my privacy.

There is also a completely separate issue where CRA got a federal order forcing PayPal to release transaction details to the CRA to make sure that people are not avoiding paying taxes on any income from selling online. That has nothing to do with this issue.

[ypdc_dennis]

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@2fiftyrecords wrote:

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Thanks but to be clear, this tax return info request is not being requested because of the CRA. This is PayPal's own policy.

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Then complain to both your local MP and to the CRA about this paypal information grab.

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[cumos55]

The Paypal website has been visited......The CRA website has been visited.

The Privacy Act has been read, specifically as it applies to the Canada Revenue Agency.

Paypal's request has to be considered very unique.  Paypal's request for OP does not correlate with the procedure Paypal has used with other people that use Paypal.

A request for tax information from CRA  is for information submitted  to CRA....  Only the information submitted to CRA can be "trusted" to be "correct".

It must be concluded that something happened with respect to OP's account on Paypal....  Something that OP does not know.     OR  ....does this relate to something that OP sold...  OR who made a unique purchase....  and up popped a red flag......

Paypal needs a measure of clarification of "who" created this problem, or how it was created.

Paypal chooses not to be responsive and is waiting for the requested information

This could ultimately become a legal problem, with an assist from a lawyer.

[hlmacdon]

Did this a while back, they accept scanned files fine. Multiple documents are required, if I recall in totality, I had one CRA related document (in this case an installment remittance), one from the original business number registration, then a credit card/utility bill as proof of address. There are a few other questions related to business activities and structure which lead me to guess the are complying with other FINATRAC/FINCEN/AML type regulations where they have to track the flow of money in and out of the country and for what purposes it is moving. In less than 24 hours after submission my submission was processed.

Looking at the various document request options presented to me, the essenentially need some form of CRA related correspondence that establishes an individual's identity, something that ties that individual to the linked business number and then a secondary form of address verification for that individual. It was pretty painless, and if there is a bit of info you don't want on there just black it out. They didn't have any issues processing mine, but YMMV. My funds were not held incoming or outgoing during the process.

[2fiftyrecords]

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@hlmacdon wrote:

Did this a while back, they accept scanned files fine. Multiple documents are required, if I recall in totality, I had one CRA related document (in this case an installment remittance), one from the original business number registration, then a credit card/utility bill as proof of address. There are a few other questions related to business activities and structure which lead me to guess the are complying with other FINATRAC/FINCEN/AML type regulations where they have to track the flow of money in and out of the country and for what purposes it is moving. In less than 24 hours after submission my submission was processed.

Looking at the various document request options presented to me, the essenentially need some form of CRA related correspondence that establishes an individual's identity, something that ties that individual to the linked business number and then a secondary form of address verification for that individual. It was pretty painless, and if there is a bit of info you don't want on there just black it out. They didn't have any issues processing mine, but YMMV. My funds were not held incoming or outgoing during the process.

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Obviously PayPal has changed their policy since you went through this. PayPal told me specifically that this is a new requirement. Unfortunately, they no longer accept scanned documents and will only accept documents downloaded directly from the CRA website and so you are not able to black out any information. Also, there is nothing in my tax return/assesment that would tie me to the business directly. They no loner allow you to use a utility bill etc. I have already supplied my business registration documents and also a business bank statement. They are asking for my personal tax return/assesment. Also, they are blocking your account until you comply now. Complying with the FINTRAC/AML rules is fine, an information grab of your tax return just to prove your address is not. There is absolutely nothing in any of the FINTRAC/AML rules about having to supply your tax return information.

[hlmacdon]

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@2fiftyrecords wrote:

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@hlmacdon wrote:

Did this a while back, they accept scanned files fine. Multiple documents are required, if I recall in totality, I had one CRA related document (in this case an installment remittance), one from the original business number registration, then a credit card/utility bill as proof of address. There are a few other questions related to business activities and structure which lead me to guess the are complying with other FINATRAC/FINCEN/AML type regulations where they have to track the flow of money in and out of the country and for what purposes it is moving. In less than 24 hours after submission my submission was processed.

Looking at the various document request options presented to me, the essenentially need some form of CRA related correspondence that establishes an individual's identity, something that ties that individual to the linked business number and then a secondary form of address verification for that individual. It was pretty painless, and if there is a bit of info you don't want on there just black it out. They didn't have any issues processing mine, but YMMV. My funds were not held incoming or outgoing during the process.

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Obviously PayPal has changed their policy since you went through this. Also, there is nothing in my tax return/assesment that would tie me to the business directly. They no loner allow you to use a utility bill etc. I have already supplied my business registration documents and also a business bank statement. They are asking for my personal tax return/assesment. Also, they are blocking your account until you comply now. Complying with the FINTRAC/AML rules is fine, an information grab of your tax return just to prove your address is not. There is absolutely nothing in any of the FINTRAC/AML rules about having to supply your tax return information.

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This was on April 14th which is part of the ongoing information collection. Any CRA related document should establish an ID and address. Any business registration documentation should be able to link that ID to the business number. I would suggest trying to submit files that comply with that and see what comes back. The web forms are a multistep process and some of the documents requests show options as examples rather than rigid requirements. Have you actually gone through that process through the web dashboard? It starts with the document requests and from your screen shot it looks like you haven't gone through yet and should be able to submit.

If you have further concerns call the CRA and talk to them about the requests and if there is anyone there that is aware of this. If you are talking to anyone at paypal make sure you are actually talking to the merchant support people that you have access to as a business account as their outsourced/general staff usually are not very well informed.