Canadian Gov Wants it's ebay tax

by Ken
32 replies
The Canadian Government announced it's going after ebay power sellers.

CANOE Money - News: Watch out eBay entrepreneurs: online sales taxable
#canadian #ebay #gov #tax
  • Profile picture of the author RyanPiccolo
    What if you reside in Canada and only drop ship in the US?
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    • Profile picture of the author Ken
      Ryan, in Canada you are required to claim all income no matter where it was earned.
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  • Profile picture of the author Devan Koshal
    Thats ridiculous. Is that on top of normal income tax for a business in canada?

    "Hey your successful. Give us more of your money."

    At least canada does have the successful tax thats coming to the UK. 50% of you income is going to be taxed if you earn over £150,000 a year.
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  • Profile picture of the author The Pension Guy
    I don't think they are talking about tax "on top of the normal income tax".
    Most likely it IS the income tax they didn't pay and the CRA is after. Many people think that whatever they earned online that is not taxable income. Well, it is.

    The tax man can now use personal information to determine if the sellers have duly reported their online income.
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    • Profile picture of the author RyanPiccolo
      Ah...I misunderstood. All monies I make online I do claim as income already.
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      • Profile picture of the author Kay King
        Sounds like the govt is just enforcing the laws. Same in the US though every year at tax time there are marketers who seem shocked that online income is taxed. They seem to think if they have income that isn't from a "job", it doesn't count.

        I had a marketer tell me once he didn't claim his online income because it's "like a cash business". He thought the money was "invisible" - which was funny as he takes his payments through paypal. Oops.

        kay
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    • Profile picture of the author candoit2
      Originally Posted by The Pension Guy View Post

      I don't think they are talking about tax "on top of the normal income tax".
      Most likely it IS the income tax they didn't pay and the CRA is after. Many people think that whatever they earned online that is not taxable income. Well, it is.
      This is all it appears to be to me also. They just want to make sure people are declaring the income they earn online.
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  • Profile picture of the author worlok
    That stinks, and what worries me is that if Canada gets away with it, the Obamanuts will try it next... not that they haven't already thought about it they probably have. I know the states have i.e. trying to tax Amazon sales. We're all under some sort of assault.

    What's weird is that isn't Canada now being run by the Conservatives? ??
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    • Profile picture of the author The Pension Guy
      Originally Posted by worlok View Post

      That stinks, and what worries me is that if Canada gets away with it, the Obamanuts will try it next... not that they haven't already thought about it they probably have. I know the states have i.e. trying to tax Amazon sales. We're all under some sort of assault.

      What's weird is that isn't Canada now being run by the Conservatives? ??
      You are talking nonsense.
      Educate yourself about the differences between personal/corporate income tax and sales taxes. Don't mix them.

      And get rid of the paranoia. I am all for the Conservatives, I am a fiscal conservative and that means that every businessperson pays their fair share of taxes. Even if they don't have a clue how the taxes work. In normal countries they send you to jail for tax evasion... And as a Conservative I agree with that. Don't you, my son?
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      • Profile picture of the author worlok
        Originally Posted by The Pension Guy View Post

        You are talking nonsense.
        Educate yourself about the differences between personal/corporate income tax and sales taxes. Don't mix them.

        And get rid of the paranoia. I am all for the Conservatives, I am a fiscal conservative and that means that every businessperson pays their fair share of taxes. Even if they don't have a clue how the taxes work. In normal countries they send you to jail for tax evasion... And as a Conservative I agree with that. Don't you, my son?
        Even though I was addressing the Canadian dude, I was more in shock with the unjust 50% tax talked about over in the UK. I am not against taxes, but I am against unjustly high tax rates, especially when they put some sort of an income level when it kicks in. That's just class warfare and really unfair. If all they do is penalize success, pretty soon there won't be much incentive to become successful.
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        • Profile picture of the author High Impact
          Originally Posted by worlok View Post

          Even though I was addressing the Canadian dude, I was more in shock with the unjust 50% tax talked about over in the UK. I am not against taxes, but I am against unjustly high tax rates, especially when they put some sort of an income level when it kicks in. That's just class warfare and really unfair. If all they do is penalize success, pretty soon there won't be much incentive to become successful.
          I live in the Uk and I can say that personally I would welcome this, we have a big class devide in this country and the current tax system leans heavily on the poorer side of the divide. This would go a long way to redressing the balance.
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          • Profile picture of the author worlok
            Originally Posted by High Impact View Post

            I live in the Uk and I can say that personally I would welcome this, we have a big class devide in this country and the current tax system leans heavily on the poorer side of the divide. This would go a long way to redressing the balance.
            I have communicated with more than my share of Brits who DO NOT share your view on this. They are sick and tired, and fed up, with being fleeced by an increasingly arrogant Labour government, and all of the handouts to lazy people and immigrants who go to the UK for the sole purpose of signing up for the public dole.
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      • Profile picture of the author thezone
        Originally Posted by The Pension Guy View Post

        You are talking nonsense.
        Educate yourself about the differences between personal/corporate income tax and sales taxes. Don't mix them.

        .... In normal countries they send you to jail for tax evasion... And as a Conservative I agree with that. Don't you, my son?
        Listen...there are children reading these boards, I mean what if your child was reading this board and came across the word **x.

        Now my daughter won't stop crying...."no, no Virgina...daddy won't pay **xes...so these political puke bags can mismanage my money, and fund stupidity."

        Did you not learn anything from all the scandals? Hell, your own E-health scandal ($300-$600/hour to plan christmas parties, and to prepare bills, charging for their coffees, snack bars, etc, etc, etc, etc, etc, etc)?

        Then you have various "sects" (like your TPA), giving out $10.2 Million dollar (in an untendered contract), to their buddies at Precise parklink to fund a $1.75 Million dollar job (and fatten the wallets of who?). And for every politically corrupt rat bag that is outed...there are 10,000 more that you don't know about.

        When everyone pays **xes, everyone suffers....there is no accountability....hell if it wasn't for this recession, nothing would have come out of the closet...there is an old saying (which I just made up this morning)....when prosperity flows....nobody knows...cuz nobody gives a sheet...it's when the party is over that people start assessing the damage (but by that point it's too late).

        Those who are considerate enough to evade **xes, are the backbones of this planet (helping everyone out), after all, it all goes back into the economy....sure it doesn't pay for the overinflated salaries and benefits of local government (cry me an effin river) fat cats, who look at our money like their own personal piggy banks.....Bernie Madoff, the banks (and all the rest) were outed because of the condition of this economy.

        I can't even begin to imagine you how many lives may have been saved by those not paying **xes. You ever heard of the butterfly effect...a person who avoided paying taxes (caused a ripple effect like you can't even imagine). ie. By not paying **xes they had the money to purchase a TV, because of that sale, a father that was able to keep his job....what you don't know is that same father after losing his job was going to commit a crime, while that father was fleeing the scene of that crime (he was engaged by the police in a high speed pursuit) he hit a car, and killed one of the occupants...the occupant of that car (John Connor) was going to grow up to be a great leader, that leader was going to prevent world war III...but thanks to your ideology everyone is dead....think about that....you are willing to destroy this whole planet and everyone on it just for some money? Have you no morals?

        I love this planet, and when it comes to money, I recycle....if I have to evade **xes...to do my part....you better believe I will...because I'll be damned if I am going to be the cause of the destruction of this planet.

        The Zone
        Purveyor of truth
        Savior of the Human Race
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        • Profile picture of the author CDarklock
          Originally Posted by thezone View Post

          You ever heard of the butterfly effect...a person who avoided paying taxes (caused a ripple effect like you can't even imagine). ie. By not paying **xes
          ...he prevented one family from collecting welfare, and without the welfare the father in that family turned to selling drugs, and he sold some weed to a guy who worked at Taco Bell, and then a customer came in and ordered a seven-layer burrito, but the guy who smoked the weed gave him a spicy chicken burrito instead, so when the customer took a bite in the middle of traffic he went "WTF" and wrecked his car into a bus full of school children which overturned onto a car where a pregnant woman was on the way to the hospital, and she gave birth underneath a bus full of maimed children, and both she and the infant died, and on top of that she hemorrhaged all over her husband's BMW, which was leased, don't you understand that? Like he could afford to buy a BMW.

          And it's all your damn fault. You didn't pay your taxes, and now that guy has to pay all kinds of penalties on his lease. You jerk.
          Signature
          "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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          • Profile picture of the author thezone
            Originally Posted by CDarklock View Post

            ...he prevented one family from collecting welfare, and without the welfare the father in that family turned to selling drugs, and he sold some weed to a guy who worked at Taco Bell, and then a customer came in and ordered a seven-layer burrito, but the guy who smoked the weed gave him a spicy chicken burrito instead, so when the customer took a bite in the middle of traffic he went "WTF" and wrecked his car into a bus full of school children which overturned onto a car where a pregnant woman was on the way to the hospital, and she gave birth underneath a bus full of maimed children, and both she and the infant died, and on top of that she hemorrhaged all over her husband's BMW, which was leased, don't you understand that? Like he could afford to buy a BMW.

            And it's all your damn fault. You didn't pay your taxes, and now that guy has to pay all kinds of penalties on his lease. You jerk.
            Oh come on....like show me one person who works at Taco bell that doesn't go to work high!....that story is pure fab!! However, it did pull at my heart strings, and I did shed a tear for the ruined BMW....let's all bow our heads in a moment of silence, and prey.......

            Our father, who believeth in technology
            BMW by thy car
            The BWM does run
            thy duth have fun
            on earth, and it feels like heaven.
            Give us this day our daily drive,
            and forgive us for speeding.
            As we forgive those who sell weed to the taco bell guy that causes spicy chicken destruction.
            For BMW is the kingdom, with power and glory,
            forever and ever...

            Awman!
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    • Profile picture of the author CDarklock
      Originally Posted by worlok View Post

      That stinks, and what worries me is that if Canada gets away with it, the Obamanuts will try it next...
      It's already the law.

      If I sell something on Craigslist for $200, that $200 is income and I need to report it on my taxes. If I don't, I run the risk of owing taxes and penalties if there's an audit.

      I know the states have i.e. trying to tax Amazon sales. We're all under some sort of assault.
      Again, also the law. Sales and use tax. There's a discrepancy here, though: when someone buys something at a physical store, you know which state collects the tax. When they buy something online, you often don't. I currently live in Tigard, Oregon. My business address is in Puyallup, Washington. My business phone number is in New Orleans, Louisiana. My web server is in San Antonio, Texas. And my customer is probably in a fifth location, which may not even be in the United States at all.

      Currently, the consensus seems to be that it matters where the selling affiliate lives, and state sales and use tax is due there. So North Carolina puts a law in the legislature to clarify this, and Amazon dumps all their NC affiliates because it's a pain in the arse and the potential penalties are no joke.

      There is going to be a massive legislative war over this issue, and the fallout will probably slaughter affiliate programs for several states in the next couple years. There are five notable locations of immunity... the states which do not have sales and use tax at all:
      • Alaska
      • Delaware
      • Montana
      • New Hampshire
      • Oregon
      Oh, and greetings from Oregon, as of this past Wednesday.
      Signature
      "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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      • Profile picture of the author worlok
        Originally Posted by CDarklock View Post

        It's already the law.

        If I sell something on Craigslist for $200, that $200 is income and I need to report it on my taxes. If I don't, I run the risk of owing taxes and penalties if there's an audit.

        ---snip----

        Currently, the consensus seems to be that it matters where the selling affiliate lives, and state sales and use tax is due there. So North Carolina puts a law in the legislature to clarify this, and Amazon dumps all their NC affiliates because it's a pain in the arse and the potential penalties are no joke.

        There is going to be a massive legislative war over this issue, and the fallout will probably slaughter affiliate programs for several states in the next couple years. There are five notable locations of immunity... the states which do not have sales and use tax at all:
        • Alaska
        • Delaware
        • Montana
        • New Hampshire
        • Oregon
        Oh, and greetings from Oregon, as of this past Wednesday.

        I wonder if i can incorporate in Delaware. All the large corporations do it.... Ironically, Delaware is where Joe Biden is from..

        The other question is what about e-product sales where there is not a physical product? This stuff ought to just come under income tax. At the end of the day it's like double taxation.
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      • Profile picture of the author seriousmny
        Originally Posted by CDarklock View Post

        It's already the law.

        If I sell something on Craigslist for $200, that $200 is income and I need to report it on my taxes. If I don't, I run the risk of owing taxes and penalties if there's an audit.



        Again, also the law. Sales and use tax. There's a discrepancy here, though: when someone buys something at a physical store, you know which state collects the tax. When they buy something online, you often don't. I currently live in Tigard, Oregon. My business address is in Puyallup, Washington. My business phone number is in New Orleans, Louisiana. My web server is in San Antonio, Texas. And my customer is probably in a fifth location, which may not even be in the United States at all.

        Currently, the consensus seems to be that it matters where the selling affiliate lives, and state sales and use tax is due there. So North Carolina puts a law in the legislature to clarify this, and Amazon dumps all their NC affiliates because it's a pain in the arse and the potential penalties are no joke.

        There is going to be a massive legislative war over this issue, and the fallout will probably slaughter affiliate programs for several states in the next couple years. There are five notable locations of immunity... the states which do not have sales and use tax at all:
        • Alaska
        • Delaware
        • Montana
        • New Hampshire
        • Oregon
        Oh, and greetings from Oregon, as of this past Wednesday.
        Hey, I live in Puyallup, WA. Small world. Looks like you have migrated to Oregon. Was that choice based on sales tax issues or just a personal decision?
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      • Profile picture of the author thezone
        Originally Posted by CDarklock View Post

        It's already the law.

        If I sell something on Craigslist for $200, that $200 is income and I need to report it on my taxes. If I don't, I run the risk of owing taxes and penalties if there's an audit.
        I wood hazard (termites) to guess that if you sell an item (for $200) that cost you more then $200, there is no net prophet (other then me..did I mention I make 13 digits a month), thus no income. Unless of course it is a corporate asset that just happened to be already fully depreciated, then my guess is that you didn't sell it, but disposed of it.

        The Zone
        Net Prophet
        Financial Advisor
        Taxi Vader (Darth is my daddy)
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        • Profile picture of the author Lloyd Buchinski
          Originally Posted by thezone View Post

          on earth, and it feels like heaven.
          Reminds me of one of my all time favorite quotes:

          Maybe when you die you come before a big bearded man on a big throne and you say "Is this heaven?" And he says "Heaven? You just came from there." Kirk Douglas

          Originally Posted by thezone View Post

          Taxi Vader (Darth is my daddy)
          I liked that and had already copied and saved it before the second meaning of 'Taxi Vader' (in sound only) got to me. Don't know if this is original material but seems like you do have a way with words. Expect you would enjoy the sig site writer's exercise. Forums are a great inspiration. Anything you feel like replying to it is worth while to do it thoroughly and save it.

          And ok, I'll host this, a remarkable 80 second sound clip from a remarkable speaker about what is happening to taxpayer money in the latest war.

          http://mainlytext.com/audio/money.mp3

          I just tried that link and it seems like it gets past my hotlink protection. I will try it again once the post is up and will disable the whole hotlink protection system if I have to. If it doesn't werk (what, spell check?) just give it a minute and it should work.

          There is another equally impressive 3 min clip from the same speaker at the bottom of machine guns at night I expect that most visitors to the page will never get down that far, and that is fine with me.

          And this all happened from checking out someone from Calgary (wtf is that?)

          best wishes, lloyd
          .......__o
          .......\<,
          ....( )/ ( )...
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          Do something spectacular; be fulfilled. Then you can be your own hero. Prem Rawat

          The KimW WSO

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  • Profile picture of the author jgalty
    Isn't this old news. I thought you had claim this already.
    Signature
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  • Profile picture of the author Trader54
    Taxes on ebay income have always been there, if you haven't paid watch out you can be charged with tax evasion. Doesn't matter where you income comes from.
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    • Profile picture of the author rlpruitt
      Yep... just law enforcement.

      Evidently they've discovered that a good number of people are making a LOT of money on eBay and not reporting it.

      Notice that they're only going after power sellers. They're less concerned about sales by the "average Joe" (or Jane).

      Ralph
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      Tell me if I'm dumb, stupid, or just feakin' out of my mind!
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  • Profile picture of the author cypherslock
    Should I? Shouldn't I? Well, here goes: I believe that the money I work for is MINE. I believe that yes we all should chip in something. But I don't believe that once you're successful, you should be penalized (IE pay MORE taxes on top of all the other ones you already pay) for wanting a better life. I will gladly give a hand up, through training, content creation or just a friendly ear. I WILL NOT simply give hand outs. And I do not agree that as my income increases from my own efforts, that I should be forced to give up more of it. The best way is to get a killer CGA and tax lawyer to minimize your taxes legally.

    I know that there are some (in my own family even) that would say that once you're rich you should be required to pay more to help those less fortunate. Nope. Anyone can get out of present circumstances if they truly are willing to seek a new path.
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    • Profile picture of the author Sean Roberts
      Originally Posted by cypherslock View Post

      I know that there are some (in my own family even) that would say that once you're rich you should be required to pay more to help those less fortunate. Nope. Anyone can get out of present circumstances if they truly are willing to seek a new path.
      Amen to that!
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  • Profile picture of the author Mukul Verma
    If you are paying your income tax and sales tax (if CRA reading this, I do ) the you got nothing to worry about. Plus anything online easily tracked, so I dont understand why you would not. They get a warrant to see your paypal account, it will reveal everything!!!!
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  • Profile picture of the author nturgeon
    For all the Canadians, come income tax time, do you list yourself as being "self employed"?
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  • Profile picture of the author Mukul Verma
    Sole P, but now switching to corporate

    I think it depends on if you are full time, part time and how much revenue you bring in.
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  • Profile picture of the author The Pension Guy
    No, it doesn't depend on anything: business income is business income - and not tip.
    Even as a part-time business owner (sole P, as stated above) you need to fill out the T2125 form. The "end result" from there should be included in your T1.
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  • Profile picture of the author Mukul Verma
    Here a Tip, leave it to the bean counters (Accountant) and focus on making your money problem that you make too much
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  • Profile picture of the author Clark
    Ottawa, Ontario, July 30, 2009... The Honourable Jean‑Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture and Agri-Food), advises Canadians that the income they earn online is taxable.
    As a result of a Federal Court of Canada decision, eBay Canada has provided the Canada Revenue Agency (CRA) with the names of eBay sellers as well as their contact information and sales records.
    News release - "eBay sellers must declare all income for tax purposes," states Minister Blackburn

    [url]www.cra-arc.gc.ca/nwsrm/rlss/2009/m07/nr090730-eng.html

    I decided not to close the hyperlink tag to the CRA page 'cause I don't need 'em knowing about the WF so you'll need to paste the link in to read the actual CRA news release

    If eBay Canada is freely forking over names and sales records of Canadians then you can be sure that they're poking their nose into high transfer funds activity of Canadian Paypal users as well... not just eBay sellers.

    Fortunatly, Canada has built in a provision for you to use the Voluntary Disclosures Program once you get nabbed so you don't have to go to major pounding in the arse prision for tax evasion.

    Conditions for a disclosure

    A valid disclosure must meet four conditions. These conditions require that the disclosure be voluntary, complete, involve the application or potential application of a penalty, and generally include information that is more than one year overdue. If the CRA accepts the disclosure, the taxpayer will have to pay the taxes or charges owing, plus interest. However, the taxpayer will not be subject to penalty or prosecution for those amounts accepted as a valid disclosure.
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