Getting audited by the Canada Revenue Agency largely due to GAS

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

  1. peskypesky

    peskypesky Member

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    good thing we don't have taxation without representation!
     
  2. wox

    wox Supporting Member

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    I remember people mailing checks for eBay purchases in the 90s.

    You'd receive the check, deposit it at the bank, wait for it to clear, then send the item off.

    It took weeks.
     
  3. PatriotBadger

    PatriotBadger Member

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    [​IMG]
     
    coffeecupman and Vaibhav Joshi like this.
  4. Vaibhav Joshi

    Vaibhav Joshi Member

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    In the van down by the river? ;)
    Can you actually become a sovereign citizen, legally?
     
    derekd likes this.
  5. drbob1

    drbob1 Silver Supporting Member

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    I remember those days, too. I'd call someone in California who'd listed a guitar in the SF Bargain Finder and say: "you don't know me, but I saw your guitar for sale, would you consider shipping it to me (in Wisconsin)?" I bought hundreds of guitars/amps/effects that way and rarely had a problem!
     
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  6. Vaibhav Joshi

    Vaibhav Joshi Member

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    Canada over Kim Kardashian, any day of the week. :mob
     
  7. AndySertin

    AndySertin Member

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    Aren’t they essentially trying to tax you twice? There is no income if it’s hobby or personal transaction. Period.
     
  8. vortexxxx

    vortexxxx Member

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    I'd have to check on exchange because they auditing 7 years. There are a lot of transactions so they are thinking I'm evading and looking at everything they can find.
     
  9. vortexxxx

    vortexxxx Member

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    That's what I thought because I just kept reusing the money. They originally saw it as a business now they are saying it's self employment.
     
  10. vortexxxx

    vortexxxx Member

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    They see it as buying and selling. I have to prove otherwise. It's hard to find info without getting involved with a lawyer at first. The tax lawyers seem to charge a lot of money.
     
  11. vortexxxx

    vortexxxx Member

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    At the moment I had to go on disability, so that probably raised a flag.
     
  12. vortexxxx

    vortexxxx Member

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    I have other hobbies but 80% was musical gear.
     
  13. vortexxxx

    vortexxxx Member

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    I thought of that. I can find my old catalogs and ads. I dont know if that matters as much as they did get the transactions from PayPal, so that is something I will need to ask about.
     
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  14. vortexxxx

    vortexxxx Member

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    7(gasp!) years are being scrutinized. Finding all the paperwork if I bought things elsewhere or previously will be more than a full time job.
     
  15. rumbletone

    rumbletone Silver Supporting Member

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    TL;DR - good luck. I’m not surprised - I remember them going after people in the 80s/90s for flipping cars - because the transfers are registered, they just needed to get the data from the insurance authority and then go after anyone with high volume.

    I had a multi year fight with CRA over tuition deductions, and in the end I won. According to the guy I was dealing with at CRA, all but one other student in my program (over 100 students) didn’t follow through with the appeal and ended up losing just because they didn’t file the forms to appeal. So it seems that they just go after everyone knowing that many won’t oppose it, and for those who put up a fight they will drop it if it takes too long and they might lose. If you can’t afford a lawyer (or if the quantum owing is less than the legal fees will be ....) at least file the appeals etc yourself - the forms aren’t actually that bad (unlike the Income Tax Act itself!!) and if it truly isn’t a source of income - presumably you can show all the income tax you pay in a day job? Hopefully you can convince them that it really is just an expensive hobby. Have them read a few pages of TGP and it will convince them that you’re not an anomaly!
     
  16. vortexxxx

    vortexxxx Member

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    Because in the last few years my income was from inheritances where it is pre-taxed, I was trying to fix up the house with that and didn't need to file since my income was less than 15k.
     
  17. vortexxxx

    vortexxxx Member

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    PayPal USA was forced to give them my transactions.
     
  18. vortexxxx

    vortexxxx Member

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    Even though unsold stuff through Ebay or message boards, I dont collect gst because I dont have a business at the moment and you need more than something like 30k of Canadian sales to have to collect gst. Most of my purchases and sales were international.
     
  19. Alan Dunn

    Alan Dunn Member

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    If the PayPal account or bank account used was registered to a business then the transactions would be seen as being for business purposes.
     
  20. vortexxxx

    vortexxxx Member

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    I kept investing in my original business and didn't manage to save over 10k in all the years I ran it. At the end some major problems (such as my we site developer disappearing with our money and not finishing the site) halted the business. I didn't really know if I would quit but I never renewed my business license nor kept my business bank account active.
     

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