i_amtrunks wrote:Fair enough, if the Power Sellers are not declaring their tax correctly then they deserved to be busted.
Zeds wrote:i_amtrunks wrote:Fair enough, if the Power Sellers are not declaring their tax correctly then they deserved to be busted.
Well true. However that gives an unfair advantage to other eBay Powersellers in other countries whose government allows them to sell without any such declarations requirements. HK for example.
Burn wrote:But that's an advantage large manufacturers, wholesalers and retailers have had for years.
You abide by the laws from where you operate your business.
For most people it's a hobby, for Power Sellers though it's clearly a business.
In Australia you'd be expected to declare anything over $1000. The tax office aren't liable to crack down on you though until your turnover gets a bit bigger. In fact if you were running at a loss (this law was introduced to counter high income earning wage earners, eg Doctors, running what was nothing more than a hobby farm) you're not allowed to claim that loss until your turnover goes over $20,000 or you meet one of the other five tests.
Power Sellers however are generally legitimate businesses. I've heard stories of some who traded with a shop front for years before they realised how cheaper it was to shut up shop and sell on E-Bay from home or a warehouse. Less overheads.
So yes, it's time they cracked down on these things. The next step is to go after Paypal and force them into following standard banking procedures.
Burn wrote:People already cut into eBay's bottom line with their "buy it for a dollar but pay 100 times the real cost for shipping" practice.
eBay set up local offices in different countries so that they could comply with local laws. I don't see why they should be fighting it if they want to be considered a legitimate business.
Burn wrote:Okay I can understand eBay wanting to protect their clients as not doing so would affect their profits.
But who are eBay to defy local tax laws? If they're complying with local taxation laws around the world then what gives them the right to try to protect their clients from exploiting the laws themselves?
Australia introduced the GST back in 2000 (10% on most goods and services) and that has generated a HUGE surplus for the government. Mind you, don't ever get sick because instead of using that surplus to fix up the health system they've returned it in the form of tax cuts and other benefits (the majority of which don't apply to a single male with no kids like myself)
Yet suprisingly, we're still one of the most over-taxed countries in the world.
But I can tell you now, I work for an Accountant in a small rural town, I see people rorting the cash economy on a regular basis. Hell I know enough ways to rort the entire tax system myself!
We may be over-taxed, but then the Australian government could be collecting a whole lot more if they went after those taking advantage of the cash economy.
So sorry, I don't see the fact the government having a massive surplus as a reason for some people to avoid paying tax. Why should these Power Sellers get away without paying while others in regular trade can't?
Zeds wrote:There is I still believe more corporate tax offenses than anything the government can find on eBay. CRA is simply going after sellers that for the most part do not have any records unlike most corporations for a proper audit to take place.
Burn wrote:Zeds wrote:There is I still believe more corporate tax offenses than anything the government can find on eBay. CRA is simply going after sellers that for the most part do not have any records unlike most corporations for a proper audit to take place.
Oh for sure.
The worst part is the ones they do catch up with probably made innocent errors while those who are blatantly rorting the system will escape.
Burn wrote:Zeds wrote:There is I still believe more corporate tax offenses than anything the government can find on eBay. CRA is simply going after sellers that for the most part do not have any records unlike most corporations for a proper audit to take place.
Oh for sure.
The worst part is the ones they do catch up with probably made innocent errors while those who are blatantly rorting the system will escape.
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