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49thParallel · 12-04-2002, 05:31 PM

Quiet...this is not directed at you...just my overall observation...with "you" refering to any and all Canadian paysite owners

Here is what is most likely CCRA's problem with the adult industry...

Chances are you use an American payment processor...or you may use a Canadian one..but I doubt it. Either way...have you ever made an attempt to integrate a system that charges Canadian's GST? Probably not...

CCRA looks at this and says, why not? Every other other business in Canada has to charge GST. So their next logical assumption is...you, the CDN paysite owner is trying to evade paying GST, where legally required.

Now remember, CCRA's mandate is not to do your accounting for you. Their's is to collect taxes and interpret data that you can provide them. So, you say, but only 5% of my customers are CDN. They say, where is the documentation to prove this, and what measures have you made to ensure that these customers are being charged the legally due GST?

Your answer is, my processor can tell me how many customers are CDN. They say again, where is the documentation? ...remember, they will not do the research for you, and you have to have a detailed and journalized paper trail...

...And then the clincher...you tell them that no attempt has been made to collect taxes through your payment processor.

Their logical response...we have no evidence that you are attempting to adhere to the laws of the CDN tax system and you do not have the proper documentation and papertrail..so....the only logical response...you owe us GST on everything...

Like I said before...this is a business like any other business...you would not assume that you could get away from charging GST in any other field..so why on earth would you assume that you could in the adult industry.

Just like the service industry...they showed that they couldn't police themselves..so the tax department accessed an automatic "tip percentage" to gross income. Now, it looks like the adult industry gets to join their ranks.

P.S. we use CollinsBarrow, but strickly for my "mainstream" firm.

12-04-2002, 05:31 PM
49thParallel So Fucking Banned Join Date: Jul 2002 Posts: 1,197	Quiet...this is not directed at you...just my overall observation...with "you" refering to any and all Canadian paysite owners Here is what is most likely CCRA's problem with the adult industry... Chances are you use an American payment processor...or you may use a Canadian one..but I doubt it. Either way...have you ever made an attempt to integrate a system that charges Canadian's GST? Probably not... CCRA looks at this and says, why not? Every other other business in Canada has to charge GST. So their next logical assumption is...you, the CDN paysite owner is trying to evade paying GST, where legally required. Now remember, CCRA's mandate is not to do your accounting for you. Their's is to collect taxes and interpret data that you can provide them. So, you say, but only 5% of my customers are CDN. They say, where is the documentation to prove this, and what measures have you made to ensure that these customers are being charged the legally due GST? Your answer is, my processor can tell me how many customers are CDN. They say again, where is the documentation? ...remember, they will not do the research for you, and you have to have a detailed and journalized paper trail... ...And then the clincher...you tell them that no attempt has been made to collect taxes through your payment processor. Their logical response...we have no evidence that you are attempting to adhere to the laws of the CDN tax system and you do not have the proper documentation and papertrail..so....the only logical response...you owe us GST on everything... Like I said before...this is a business like any other business...you would not assume that you could get away from charging GST in any other field..so why on earth would you assume that you could in the adult industry. Just like the service industry...they showed that they couldn't police themselves..so the tax department accessed an automatic "tip percentage" to gross income. Now, it looks like the adult industry gets to join their ranks. P.S. we use CollinsBarrow, but strickly for my "mainstream" firm. Last edited by 49thParallel; 12-04-2002 at 05:36 PM..