Getting audited by the Canada Revenue Agency largely due to GAS

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

  1. AlanH

    AlanH Member

    Messages:
    1,168
    Joined:
    Nov 6, 2016
    The alternative is really cash. I'm on eBay UK and I do see people saying they will cancel transactions and refund if PayPal is used.
     
    Gibson Dog likes this.
  2. odourboy

    odourboy Member

    Messages:
    528
    Joined:
    Feb 3, 2007
    Location:
    Earth
    I'm afraid that is not the case. If you sell something, the burden of proof is yours to establish your cost basis (what you paid for it) or the entire sale price is a taxable gain.
     
    Droliver likes this.
  3. bsuite

    bsuite Supporting Member

    Messages:
    2,735
    Joined:
    Oct 24, 2005
    Location:
    Michigan
    Ya, like that works here. lol!
     
  4. murraythek

    murraythek Member

    Messages:
    957
    Joined:
    Jan 22, 2013
    What a sham. Going after the "Little guy" for taxes when large corporations and the wealthy are getting a pass with paying little to no taxes.
     
    flatiron.putt.putt likes this.
  5. YYZ

    YYZ Supporting Member

    Messages:
    2,335
    Joined:
    Mar 14, 2009
    Location:
    Orange, CA
    After reading through this thread, I wonder if the most important detail in the OPs original post is the word "largely" in the title.
     
  6. derekd

    derekd Member

    Messages:
    36,904
    Joined:
    Sep 10, 2007
    Location:
    In a van down by the river
    [​IMG]
     
    Markdude likes this.
  7. MkIII Renegade

    MkIII Renegade Member

    Messages:
    5,181
    Joined:
    Aug 25, 2017
    Location:
    Goldeneye
    And the same people will be waiting to "have a nice look" at your finances when you die one day, too, to see if they can get a piece. :wave
     
  8. chandra

    chandra Member

    Messages:
    1,315
    Joined:
    Mar 14, 2018
    Location:
    Toronto
    CRA is a bunch of clowns. Wish you all the best OP.
     
  9. KenG

    KenG Member

    Messages:
    1,202
    Joined:
    Jan 9, 2016
    Location:
    Alberta Canada
    Still waiting to hear if the OP reports any other income. My vote calls bs, the story simply doesn't add up and I've been filing for 40 years now.
     
    IT'S NOT A TUMAH likes this.
  10. Doug's Tubes

    Doug's Tubes Member

    Messages:
    10,341
    Joined:
    Oct 12, 2004
    Location:
    NY
    Does Paypal report dollar sales to the Canadian gov't like they do in the US? If so do they issue an annual tax document?

    In the US for third party payment processors, the 1099k reporting threshold is 200 or more transactions and $20,000 in sales.

    So there's a record of your sales, hopefully you keep good records and can prove your cost.
     
  11. daacrusher2001

    daacrusher2001 Silver Supporting Member

    Messages:
    4,872
    Joined:
    May 25, 2008
    Location:
    Northern NJ
    Yeah but Family Guy is always on the money when it comes to Canada.
     
    0018g likes this.
  12. Drew66

    Drew66 Member

    Messages:
    199
    Joined:
    Mar 25, 2019
    Fair enough but you would be surprised how many people believe that sovereign citizen nonsense.
     
    jrjones and derekd like this.
  13. motokev

    motokev Member

    Messages:
    3,366
    Joined:
    Sep 15, 2006
    Location:
    Utah
    Greedy Governments

    Born Free Taxed to Death
     
  14. derekd

    derekd Member

    Messages:
    36,904
    Joined:
    Sep 10, 2007
    Location:
    In a van down by the river
    No, I get it, which is why I mentioned it.

    The whole SC thing makes the rounds on the Pub a couple of times per year complete with videos of said SC experiencing an epic fail in trying to avoid whatever the situation is.
     
  15. ned7flat5

    ned7flat5 Member

    Messages:
    3,659
    Joined:
    Sep 21, 2014
    Location:
    Melbourne Australia
    Maybe the auditor will turn out to be “one of us ...”.

    Could be a good thing or ....
     
  16. Gibson Dog

    Gibson Dog Silver Supporting Member

    Messages:
    1,067
    Joined:
    Feb 1, 2018
    Location:
    Los Angeles
    Ebay USA you don't have to take pPal & I remember in the early days a lot of people paid by wire transfer. I can't see that working here at this point. Extremely sadly this hobby is coming to an end IMO. Between the sales tax & all the other hassles ebay & Reverb are going to get crushed. Also the big stores that have cultivated a huge online consumer base Sweetwater, Wildwood, CME etc, won't entirely get crushed but they're going to lose a large chunk of their business. I think people will be more inclined to buy in State now especially if the store offers financing like SW or WW. What a drag!!
     
  17. Surgeon

    Surgeon Member

    Messages:
    540
    Joined:
    Jun 13, 2008
    I do believe that it all stems from the fact that your paypal account was linked to your former business and it now shows massive amounts in transactions. To them that means "business" and they don't see any taxes filed paid by that business. Maybe proving to them that you're not a business anymore even if that account is active could be a good start... again: good luck.
     
  18. PatriotBadger

    PatriotBadger Member

    Messages:
    739
    Joined:
    Dec 1, 2016
    I don't know what to say except laywer up and good luck. What year is it? For a minute there I thought it was 1984. And they wonder why people innocently persuing their own personal interests and hobbies have to walk on eggshells and try to avoid shenanigans.
     
  19. Juneaumike

    Juneaumike Member

    Messages:
    823
    Joined:
    Apr 9, 2019
    Yeah, I don't think that actually works.

    (I know, I know. But I heard a rumor that if I'm the 50th guy to miss an obvious joke, I win a T-shirt that says "I'm with Stupid." Those shirts never stop being hilarious. :) )
     
    derekd likes this.
  20. KestnerGS

    KestnerGS Supporting Member

    Messages:
    134
    Joined:
    Jul 14, 2010
    If you use paypal, show the purchase, then the sale. Even if you were making $100 per guitar, they would only be able to tax you on that. I use paypal for 90% of my transactions for that reason.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice