Feds plan to audit eBay marketers

Canwest News July 30:

OTTAWA — Canada Revenue Agency is planning a wave of audits on Canadians who have sold products on the online eBay website marketplace. Revenue Minister Jean-Pierre Blackburn said on Thursday that anyone who has sold products on the website could avoid audits, fines and penalties by voluntarily coming forward and declaring the revenue to the agency. "Taxpayers should know that the tax laws that apply to traditional commerce apply in the same way to electronic commerce, like eBay selling," said Blackburn in a statement. "I strongly encourage eBay sellers, and for that matter, any taxpayer who has not already done so, to correct their tax affairs as soon as possible to avoid penalties or prosecution."Following a recent Federal Court decision, the agency received a list of eBay sellers and their transaction records that will allow them to begin audits by the end of the summer. The agency said it would use the records to determine whether sellers properly reported revenues on their tax returns.