PayPal ordered to disclose business accounts to Canada Revenue Agency

PayPal ordered to disclose business accounts to Canada Revenue Agency

Online payments company has 45 days to hand over information identifying its account holders

The records of Canadians who use PayPal business accounts to make and receive payments will soon be in the hands of the federal government’s tax-collecting agency.

The online payments company said Wednesday it has been given 45 days to hand over information identifying its account holders and the amount and number of payments they paid or received between Jan. 1, 2014, and last Friday to the Canada Revenue Agency.

“We are required to disclose information about business account holders who have received or sent a payment,” it says on its website. “Affected account holders have been notified.”

CRA spokesman Patrick Samson confirmed that the agency received Federal Court of Canada authorization to request the information, part of a crackdown on Canada’s underground economy.

“Specifically, the CRA is seeking PayPal’s list of Canadian clients who have a commercial account, including the total value of their transactions (purchases and sales) from 2014 to the date of the requirement,” he said.

“The information obtained through the unnamed persons requirement will allow the CRA to ensure that these individuals and corporations comply with their tax obligations under the Income Tax Act.”

PayPal Canada says it has more than 6.4 million active users, although that includes personal accounts which are not affected by the CRA move.

Hussein Warsame, a tax professor with the University of Calgary’s School of Public Policy, linked the data grab to the federal government’s 2017 budget, which provided a five-year funding boost to the CRA to fight tax evasion by investigating the underground economy.

“They think people who use PayPal are probably avoiding tax and therefore they’re using the extra funding to basically look for low-hanging fruit,” he said.

“It is a fishing expedition, in many ways.”

He said the agency is likely offering the 45-day window to allow people who haven’t paid their taxes as required to file tax revision forms and come back into compliance with the tax act.

Warsame said the files could allow the CRA to identify people who have had more than $30,000 in business revenue over 12 months, which means they should be registered to collect and remit the GST.

It also may identify people or corporations who owe corporate or personal income taxes. If caught, they will have to pay the tax, plus penalties and interest. If the tax avoidance is deliberate, it could be considered tax evasion and result in a criminal charge, he said.

He said Canadians are required to retain tax records for six years and recommended that PayPal customers pull together their records to prepare for potential audits.

Dan Healing, The Canadian Press

Just Posted

Shoes and toys were placed by the altar at the Circle of Indigenous Nations of Castlegar Indigenous Peoples Day gathering on Monday. Photo: Betsy Kline
Castlegar Indigenous Peoples Day gathering focuses on remembering

Occasion was more somber than previous years

Manager Cora Muellner (left) and employee Rachel Ronson at Buddy’s Place in Nelson. Muellner is among local cannabis retailers welcoming changes to provincial regulations. Photo: Tyler Harper
Nelson cannabis retailers welcome provincial changes to delivery, hiring options

As of July 15, private retailers can deliver their products to your door

Waneta Manor is located on Laburnum Drive in Trail. Photo: Sheri Regnier
New elevator coming to Trail manor this summer, says head manager

The elevator in Waneta Manor has been out of commission since February

Greater Trail barrel racer Hunter Weishaupt will race for a coveted spot in the Calgary Stampede
West Kootenay barrel racer takes run at Stampede

Hunter Weishaupt is inviting sponsors to get on board in her quest to compete in Calgary Stampede

Refusals to wear masks had Trail police called to two separate scenes on Saturday. Photo: Waldemar Brandt on Unsplash
Trail police called to mask confrontations

The Province of BC has masks being mandatory indoors

A person stands in a tower on the perimeter of the Number 3 Detention Center in Dabancheng in western China’s Xinjiang Uyghur Autonomous Region on April 23, 2021. Human rights groups and Western nations led by the United States, Britain and Germany accused China of massive crimes against the Uyghur minority and demanded unimpeded access for U.N. experts at a virtual meeting on Wednesday, May 12, 2021 denounced by China as “politically motivated” and based on “lies.” THE CANADIAN PRESS/AP-Mark Schiefelbein
VIDEO: Trudeau demands truth from China about Uyghurs

PM says Canada has admitted broken Indigenous relationship, unlike China on Uyghurs

CELEBRATING INDIGENOUS PEOPLES DAY
Council members and witnesses from the Hupacasath First Nation, left, and Tseshaht First Nation, right, prepare to raise their respective flags in front of Port Alberni City Hall on Monday, June 21, 2021. The flags will permanently fly as part of the city’s reconciliation work. See more coverage from the flag raising ceremony on page A5. (SUSAN QUINN/ Alberni Valley News)
Vancouver Island First Nations flags to fly permanently at city hall

Addition of flags are one Port Alberni response to reconciliation

Kelowna Mayor Colin Basran, middle right, participates in a ribbon-cutting ceremony in honour of the launch of Kelowna’s plasma donor centre at Orchard Plaza Mall on June 22. From left to right: Canadian Blood Services’ business development manager Janna Pantella, Canadian Blood Services’ operational excellence manager Tyler Burke, Kelowna Mayor Colin Basran and Canadian Blood Services’ centre manager Janine Johns. (Aaron Hemens/Capital News)
B.C.’s first dedicated plasma donor centre opens in Kelowna

The Kelowna location is the third dedicated plasma donor to open in Canada

Children walk with their parents to Sherwood Park Elementary in North Vancouver for the first day back to school on Sept. 10, 2020. THE CANADIAN PRESS/Jonathan Hayward
Study reassures parents, teachers that COVID-19 infrequently shared at school

Federally funded study in Vancouver finds risk in the classroom and in the community identical

Conservative MP Kevin Waugh rises during Question Period in the House of Commons Tuesday April 13, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Single-game sports betting about to become legal in Canada

Senate passes bill to take sports gambling away from overseas agencies

Point Roberts is part of the mainland United States but not physically connected to it, to reach the community by land one must pass through Canada. THE CANADIAN PRESS/Darryl Dyck
Closed Canadian border leaves Point Roberts’ only grocery store on verge of closure

‘We’re Americans but we’re not attached to America. It’s easy to forget we’re here,’ says owner Ali Hayton

Robin Sanford and her fiance Simon Park were married in an impromptu ceremony at Abbotsford Regional Hospital on June 16. (Submitted photo)
Mom dies day after witnessing daughter’s hospital wedding in Abbotsford

Nurses help arrange impromptu ceremony in 3 hours for bride and groom

B.C. Finance Minister Selina Robinson with Premier John Horgan after the budget speech Tuesday, April 20, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. home owner grant won’t be altered, despite expert advice

Tax break for residences worth up to $1.6 million too popular

B.C. conservation officer Sgt. Todd Hunter said a black bear is believed to have killed local livestock. (THE NEWS/files)
Black bear believed to have killed miniature donkey in Maple Ridge

Trap set for predator that has been killing livestock

Most Read