On November 13, 2017, Radio Canada announced that Paypal Canada was advising Canadian customers who have a Business account that Revenue Canada had made a request for information.
In particular, the information Revenue Canada seeks to obtain is as follows:
The full name of any individual or corporation with a Canadian address;
the date of birth of each individual;
the name / company name;
the telephone number (s) of the company or individual;
the address or complete addresses of the company or individual;
the email address of the company or individual;
the social insurance number of the individual or the business number of the company
the total number of transactions and the value of payments made or received for each calendar year between January 1, 2014 and November 10, 2017.
This file is reminiscent of the Ebay case, in 2011, by which Revenue Canada had also forced the online sales site to disclose the names of “Power Sellers” See this other text on our blog written on the subject :
The Revenue Canada audit
We believe that Revenue Canada will process Paypal in a similar way to Ebay.
Revenue Canada will pre-screen files, check whether taxes have been paid in due course, write to the taxpayer, ask for their bookkeeping, etc.
However, with our experience in the Ebay file, we were able to help many taxpayers at the time, to go through the verification process and negotiate their contribution plans or acceptable payment arrangements.
If you are a Paypal Business account holder and have completed transactions between January 1, 2014 and November 10, 2017, we are able to provide you with tax assistance. Do not hesitate to contact us.
Louis Sirois, LL.B