eBay Powerseller issue

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lemeiuxrules

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eBay Powerseller issue - UPDATED 12-NOV-2008

Here is the letter I received from eBay today:

Dear qc_sportscards,

In November 2006, the Canada Revenue Agency (CRA) applied for and received a Federal Court Order requiring eBay Canada to release account information and sales data of Canadian PowerSellers for the 2004 and 2005 years. Our records show that you are among this group.

In February 2008, the Federal Court of Canada affirmed its ruling in favour of the CRA. Subsequently, eBay launched an appeal of the decision which is scheduled to be heard on October 8, 2008 before the Federal Court of Appeal. Please know that eBay takes user privacy very seriously and is contesting this Order. If, however, eBay loses this appeal, it will be required to release the requested user information to the Canada Revenue Agency.

As yet, no information has been released to the Canada Revenue Agency. We will advise affected members by email if we are forced to release their information. However, because we know this matter will be of concern to our members, we felt it was important to provide you with this advance update.

Additional information and the answers to some commonly-asked questions are posted at www.ebay.ca/powersellerinfo. If you have additional questions about this situation, you may email [email protected].

We remind sellers that they are responsible for ensuring that they are in compliance with all laws and regulations relating to their activities online. Please note that a change in PowerSeller status at this time will not alter our information disclosure requirements, if we lose this appeal.

Protecting our users' privacy is of the utmost importance to eBay, and we continue to vigorously defend your rights through this appeal. As more information becomes available, we will keep you updated.

Regards,

Scott Shipman
Senior Counsel
Global Privacy Practices



So, if they are going to tax me on my ebay income -the bastages had best allow me to claim all my money spent on the wax that was posted on eBay as a business expense. If so, I SHOULD get a HUGE refund from the turds(but I dont have receipts from back then). :)

Mike.
 
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It's no wonder eBay is appealing this decision. If this goes through, how many people will drop out of the PowerSeller program, which means lost revenues (re: fees) for eBay...?
 
What a joke, our government will try to tax us for every and anything....I think we must be the most taxed country in the world.....some things we are triple taxed!!!! I hope that Ebay wins...if not there surely will be some loopholes!!
 
Taxes, increases in postage costs, PayPal and ebay fees, chargebacks....

Soooo glad I don't sell cards for a living.
 
not too familiar with Canada's tax system...but if you are lacking actual receipts for the wax, can you utilize bank statements/credit card statements for those purchases made utilizing those forms of payment??

if so, it may be a way to at very least account for some of the "purchases" rather than being SOL with everything!

only a thought......
 
Reddrgn88 said:
What a joke, our government will try to tax us for every and anything....I think we must be the most taxed country in the world.....some things we are triple taxed!!!! I hope that Ebay wins...if not there surely will be some loopholes!!
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We're not even close to the most heavily taxed.

Not to mention all those privileges we enjoy come with a price tag. Gotta pay for it somehow.
 
quincy said:
We're not even close to the most heavily taxed.

Not to mention all those privileges we enjoy come with a price tag. Gotta pay for it somehow.
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We are more than paying for it...we are paying so much the government literally!!!!!!!!!!!!! losses track of millions and millions more gets dumped into useless programs and causes!! I'm sure our gas tax alone could pay for all the PRIVILAGES we enjoy....I better stop...starting to get mad..sorry...:|:|
 
If you are utilizing eBay as an extension of your revenue stream, I don't know why you wouldn't think that you should have to pay tax on the income it generates.
 
gamebreakers said:
If you have no receipts for the wax, you'll be S.O.L. my friend... They will also most likely lose on appeal so revenu Canada will be taking a huge bite out of every Powerseller's behind.
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Only if you are not collecting and remitting. Honestly this type of legislation doesn't worry me, it is the casual dealer, that hasn't collected or paid taxes on their eBay sales that need to start worrying. Everytime I get a complaint about charging taxes, I remind them of this ruling.
 
What if you are in the US? I just recently joined the Powerseller program. Do I get taxed? I started to charge 8.25% tax to all California customers with the new 09 OPC cards.
 
mrconie said:
What if you are in the US? I just recently joined the Powerseller program. Do I get taxed? I started to charge 8.25% tax to all California customers with the new 09 OPC cards.
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Do you have a seller's re-sale license or business permit? If so, then you are permitted to charge/collect taxes on items sold....if not, technically it is illegal for you to charge tax (in the State of CA).

From the sounds of what the OP posted, this ruling applies to Canadian Power Sellers only at the moment...but I would assume that the US might try to follow suit at some point in the future!
 
geerhed19 said:
If you are utilizing eBay as an extension of your revenue stream, I don't know why you wouldn't think that you should have to pay tax on the income it generates.
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The key is whether or not it's a hobby. If there's a "reasonable expectation of profit", then it's a business.

And if this goes through in Canada, you know it's just a matter of time before the (cash-strapped) US Government jumps on board...
 
geerhed19 said:
If you are utilizing eBay as an extension of your revenue stream, I don't know why you wouldn't think that you should have to pay tax on the income it generates.
Click to expand...

I am utilizing eBay to try and get back approx 10% of what I originally spent on the wax to open and satisfy my obsession/addiction.

As Heidi mentioned - hopefully CC statements and the such can be used in a worse case scenario. I just dont know how far back I can request the receipts from the financial institutions.
 
The thing with Canada is if you have a small Business that is going to sell stuff you need to have a Business Licenses. When you apply for this you get asked whether you are need a GST and a PST/HST Vendors Permit in Ontario. If you make a Living off of selling cards its your own stupidity that you are not charging Taxes on your product that you sell specially over the internet. I also don't see why people don't get this yes we do have alot of taxes but guess what we all have to pay them. No matter what when you do your taxes whether it be once a year or once every three years you have to tell them how much you make and if you haven't already paid taxes on it then you have to.
 

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