Getting audited by the Canada Revenue Agency largely due to GAS

Discussion in 'Guitars in General' started by vortexxxx, Aug 12, 2019.

  1. KenG

    KenG Member

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    OP do you have a job and income otherwise, receive T4s etc? If you have no visible income it would rightly flag CRA that you must earning money in some other undeclared way.
    Our current Fedral Government gave CRA a mandate to get more creative 4 years ago in sourcing taxable income. They quickly did away witha $2000 deduction for folks who are diebetic to assist with the costs of testing /treating.
     
  2. Borg20

    Borg20 Member

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    Yeah exactly, this is more than a hobby based on the number transactions.
     
  3. Gibson Dog

    Gibson Dog Silver Supporting Member

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    Is there a PayPal alternative that you know of? Everyone knew sales tax was coming & would be strongly enforced on NEW out of state gear. I was surprised that didn't happen 10 years ago.

    @vortexxxx You can get a record of every pPal transaction, that along with some other easy to get info should be enough for them. This is a bunch of BS - this is a hobby I opened my eBay & pPal acct in Feb of 1999 & have been active since then.

    In the big picture most people loose money doing this (but it's fun) if you need any supporting docs let me know. First of all it's BS to start going after people for this second it should be easy to show that this is not a money making venture, generally the opposite.
     
  4. Borg20

    Borg20 Member

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    So CRA forced Paypal to hand over all your transaction details? Paypal Canada or Paypal USA?
     
  5. SAVEStheDAY

    SAVEStheDAY Member

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    Maybe you'll get lucky and Harold Crick will be assigned to your case. He's got a soft spot for guitars.

    [​IMG]
     
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  6. PurpleJesus

    PurpleJesus Moderating Moderation Immodestly Staff Member Supporting Member

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    I was gonna sell a lawnmower. Maybe I should just donate it. Lol. I’d hate to pay taxes on it twice.
     
  7. Bolt VanderHuge

    Bolt VanderHuge Member

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    I wouldn't sweat it. The worst that could happen is that you'd be sent to Canadian prison.

     
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  8. dachshund

    dachshund Member

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    Taxes on pre-owned things that were already taxed is confusing as hell to me. If youre going to tax it again, at least make it some kind of re-sale tax at a lower rate right? It should be 0 in my opinion, but at the most maybe 25-50% of the tax rate in that state.
     
  9. Obsessive Tinkerer

    Obsessive Tinkerer Member

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    Be sure to get a fret dress if there are any signs of playing “Breaking the Law” by Judas Priest... if there’s any evidence of the progression on the frets. Haha. Seriously, I hope this goes well for you.
     
  10. AnthonyL

    AnthonyL Silver Supporting Member

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    I lived in Vancouver as an expat back in the mid 2000’s. One day I was talking to my neighbor about payroll taxes as well as GST/PST - just general questions. He stopped me and said, “Don’t you know you now live in the land of tax?”
     
  11. Dr.Picklebottom

    Dr.Picklebottom Member

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    burden of proof is theirs. my position would be simply- these were all personal purchases and sales- prove they weren't.

    also this should be a wake up call that your behavior could be perceived as senseless.
     
  12. BdaGolfer

    BdaGolfer Member

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    Did you ever close the business accounts with CRA from your original video activities? Sounds like you are conducting transactions on that account but not filing paperwork, from CRA'S perspective. They hate missing paperwork.
     
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  13. Average Joe

    Average Joe Member

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    On a positive note, think of all the forum membersyou’re helping. See honey, I told you my collecting wasn’t a problem - not like that guy
     
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  14. DreamTheaterRules

    DreamTheaterRules Former Lyricist for Calhoun Tubbs

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    This totally sucks! Maybe your only way out is to get the guy to sign up at TGP and see what gas is really like, and how the compulsion fuels the constant sales for the next great thing. I'm sure you could find at least a few thousand threads proving one guy had a "this new pedal/amp/guitar I just bought is the greatest pedal/amp/guitar ever" followed three months later buy a "I hate to sell this but need to fund XXX" thread. That should prove it to him. :D
     
  15. Borg20

    Borg20 Member

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    Weird how Americans base their knowledge of Canada on what they see on the Simpsons.
     
  16. hobbyplayer

    hobbyplayer Member

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    And produce a bill of sale when you sell.
     
  17. Borg20

    Borg20 Member

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    Really, so you don't pay taxes in the USA? Is that why 60 million Americans have no health care?
     
  18. dogbone94

    dogbone94 Supporting Member

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    i can write you a bill of sale for it all....;)
     
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  19. IT'S NOT A TUMAH

    IT'S NOT A TUMAH Member

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    Yeah, I have never been audited for any kind of online purchases and have been doing so on an on-and-off basis for the past 14 years. Something about this comes across as somewhat suspicious and I feel we are only getting the convenient parts of the story.
     
  20. Dasein

    Dasein Member

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    Everything has a cost of goods attached to it..... what the OP has failed to tell us is if this is a personal income tax audit or if it’s a GST business audit. If it’s income tax, his income is net of cost of goods.....
     
    Vaibhav Joshi likes this.

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