EBay sellers could face Canadian tax scrutiny

[E-Fishin-C]

Canadians who make a habit of selling goods on eBay should brace themselves for some attention from the tax department.

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The Canada Revenue Agency has won the right to examine files of the auction site's so-called "power sellers" - those Canadians who generate at least $1,000 US a month in billings from their online sales.

 

The tax department wants to know if these big sellers are declaring their eBay income.

 

A recent Federal Court of Canada decision affirms an order last year that requires eBay Canada to provide tax officials with the full account information on these sellers, including their names, user IDs, mailing addresses, billing addresses, phone numbers, and e-mail addresses.

 

The online giant must also supply merchandise sales information about the power sellers, including gross annual sales.

 

The order applies to any Canadian individual or business who had power seller status in Canada at any time during 2004 and 2005.

 

EBay Canada lawyers had argued that the computers that housed the information were located in California. But under questioning, eBay lawyers acknowledged that the information was easily accessible in Canada by its Canadian operation.

 

"The reality is that the information is readily and instantaneously available to those within the group of eBay entities in a variety of places," wrote Mr. Justice Roger Hughes of the Federal Court of Canada.

 

"It is irrelevant where the electronically-stored information is located or who as among those entities, if any, by agreement or otherwise asserts 'ownership' of the information."

 

Mr. Justice Hughes noted that the Income Tax Act permits the Canada Revenue Agency to carry out somewhat of a fishing expedition.

 

"The wording of subsection 231.2(1) is very broad; it enables the minister to require 'any person' to provide 'any information'," he wrote. "The only constraint is that the request must be made 'for any purpose related to the administration or enforcement of this Act'."

 

But eBay Canada lawyers said the government had failed to show sufficient evidence that the tax agency was carrying out a "genuine and serious inquiry" into power sellers, as a previous court ruling had required.

 

Hughes reserved judgment on that part of the case, pending a later hearing.

 

EBay is the largest online auction site in the world. In its most recent fiscal year, it reported revenues of almost $6 billion US.

[Gary N.]

This doesn't surprise you does it? Our tax dollars at work, finding more tax dollars.

[Eugene]

This doesn't surprise you does it? Our tax dollars at work, finding more tax dollars.

 

So the buggers can pad their incomes and pensions.

[flb_78]

That "free" health care ain't so free. Gotta come from somewhere. Hopefully, the U.S.A. squashes Billary and Obama stance of tax the rich and give to the poor.

[pegscraper]

That "free" health care ain't so free. Gotta come from somewhere. Hopefully, the U.S.A. squashes Billary and Obama stance of tax the rich and give to the poor.

 

EXACTLY.

[CrazyHorse]

Gotta love socialism. Years ago when I sold computer software I remember going to Toronto trade show we had to add 30% to the price of our software for Canadian taxes. I remember many of Canucks complaining about the taxes. I of course reminded them what the software cost in the U.S. I don't think you Canucks appreciated that.

[Black Owl]

As well they should.................

[Condor]

Canadians who make a habit of selling goods on eBay should brace themselves for some attention from the tax department..

 

Looks like the domino is falling. Canada first, then the US.

[Thom]

:stirthepot: just think what would happen if we got the fair tax ? Ca. would not have to pay it on USA stuff ship across the border , 23% cheaper , USA stuff sold in other country s would not have to pay it or USA anyother taxes or tariff s . i heard the CA. gov doe's not like because it would make USA stuff to cheap in CA.

[SilvrT]

speaking about taxes, I heard the Tax department is running out of ideas on what next to tax us on. Someone came up with the bright idea of a "peter" tax. Size would dictate (no pun intended) the amount of tax. Lucky for me, I'll be in the lower tax bracket!

 

:rotf:

[SilvrT]

Canadians get screwed by 28% on things like vehicles and other items. As an example a Ford pickup is 28% more expensive in Canada than in the US yet it's made here in Oakville.

 

There's now a class action law suit being launched against all of the auto makers on this very subject charging them will collusion and price fixing. So far not one of them has come forward to defend themselves. But funny thing... as soon as the legal action was launched... Porsche (not included in the legal action) lowered all of it's prices. The 911 originally selling for $120,000 in Canada is now at a bargain price of $108,000. hmmm, time to buy me thinks.

 

They will have as much luck proving collusion amongst the automakers as they do (did) with the oil companies... Now I wonder how much of our TAX DOLLARS are being squandered on this?

[SilvrT]

Ontario is looking after it all on your behalf...

 

 

ahhhhhhhh whatever would we do if it weren't for Ontario?

:witch_brew: