Feds to crack down on tax-dodging businesses using PayPal
If you have a business and you use PayPal, the Canada Revenue Agency is going to check up on you.
It has ordered the payment processing company to hand over information on any business accounts that have sent or received money in the past three years.
CJAD 800's tech expert Carmi Levy says small businesses and mom-and-pop operations are most likely going to be the ones to get dinged for taxes on unreported income.
"This is an effort by the CRA to enforce tax law on business that have previously not paid taxes," Levy says.
Within 45 days, PayPal will give the CRA names, birthdates, social insurance numbers, addresses and transaction information to compare to what's been claimed on tax returns.
If they find any discrepancies, revenue authorities will then set about knocking on people's doors.