CRA Warns That Income Earned Online Is All Taxable
by Glen Shapiro, LawAndTax-News.com, New York
26 October 2007
The Canada Revenue Agency (CRA) has issued a reminder to Canadians that the tax laws that apply to traditional commerce also apply to electronic commerce.
The tax authority stressed that taxpayers who earn income through online commercial activity should review their tax situation to ensure they are accurately reporting their income and meeting their tax obligations.
The CRA continues to vigorously enforce the provisions of tax laws to ensure that all Canadians pay their taxes, it added.
If taxpayers occasionally use the Internet to sell personal items, such as used furniture or sporting equipment, they do not normally have to report this on their tax return. However, if they regularly use the Internet or electronic boards to make a profit, then they must report those earnings on their tax return.
In some cases, the seller listed on an electronic board is actually a business, or could be considered a business for tax purposes. Business income includes income from any activity undertaken for profit or that has a reasonable expectation of profit. Online businesses must comply with the tax rules that apply to any business operating in Canada.
The CRA went on to reveal that it has a Voluntary Disclosures Program available to taxpayers who want to correct their tax affairs before the Agency begins any audit action or investigation. If a full disclosure is made before compliance action is launched, taxpayers will only have to pay the taxes owing plus interest, not any penalties.
To see today's news, click here.
Tax-News Reviews

A review and forecast of Cyprus's international business, legal and investment climate.

A review and forecast of Malta's international business, legal and investment climate.

A review and forecast of Jersey's international business, legal and investment climate.

A review of the latest budget news and government financial statements from around the world.
Stay Updated
Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.
By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.
To manage your mailing list preferences, please click here »