| If you are selling products on eBay, these earnings are | | | | and compares it against the sellers returns, they will |
| likely subject to income tax. If you sell more than | | | | note any discrepancies and usually will begin an |
| $30,000 worth of goods per/year you may also be | | | | investigation that will lead into a full blown audit. |
| required to collect and remit sales tax. | | | | If this is you, the CRA will eventually find out about |
| Last year, eBay Canada received a court authorized | | | | your income and you will be subject to interest and |
| requirement from the Canada Revenue Agency. eBay | | | | penalties. If you have been contacted by a CRA |
| must now release the account information and sales | | | | auditor, regard same as serious and seek professional |
| data of Canadian eBay members that meet the | | | | counsel immediately. We routinely represent eBay |
| following conditions: | | | | Sellers who are being audited by the CRA. We |
| Sales of more than $20,000 and at least 24 sales | | | | organize audits to take place at our office (not our |
| transactions in any of the calendar years 2006, 2007 | | | | clients home or business) and protect our client's |
| or 2008, (irrespective of membership in eBay's Power | | | | interests every step of the way. |
| Seller program); OR | | | | If the CRA has not commenced an audit against you, |
| Sales of more than $100,000 in any of the | | | | an excellent way to disclose your income and avoid |
| calendar years 2006, 2007 and or 2008, regardless of | | | | penalties and prosecution, is by making an application |
| the number of sales transactions. | | | | under the voluntary disclosure program. This is another |
| Ebay is required to supply the CRA with information | | | | process that you should not pursue unrepresented. |
| about these individuals that includes their full name, user | | | | This is a program that allows you to voluntarily disclose |
| id, mailing address, billing address, telephone number, | | | | previously undisclosed income to the CRA and avoid |
| fax number, email address, and the selling price of | | | | penalties and criminal prosecution. It is an involved and |
| each item that was sold. | | | | complex process but if you qualify, will be well worth it |
| This has resulted in an increase of audits by the CRA. | | | | in the long run. |
| When the CRA receives the information from eBay | | | | |